Daily market analysis

March 31, 2022

US Equity move lower on Wednesday after some days of increases. This is due to the market’s continued focus on the outcome of the meeting between Russia and Ukraine, as well as mixed data from the United States. The SP500 was down 0.42 percent, the NAS100 was down 0.79 percent, and the DJ30 was down 0.08 percent, according to MT4 VT Markets data.

Economic growth appears to be stable in the United States in 2021, as last night’s Final GDP statistics showed 6.9 percent growth, indicating that the Federal Reserve may continue to raise interest rates aggressively this year.

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Several analysts believe that a rapid withdrawal of liquidity will impair domestic and global economic growth in the future, as seen by the inverted yield curve that has occurred since the beginning of this month.

Aside from the Fed’s policies, the capital market was also burdened by high inflation rates produced by rapid money circulation and skyrocketing global oil prices. The next market players will await US job data and inflation figures, which will affirm the US economy’s current strength.

The softening of Russia’s invasion of Ukraine does not indicate that the battle between the two nations has ended, resulting in continued high oil and natural gas prices. This scenario was compounded by Germany’s policy of barring energy imports from Russia, putting more strain on Europe’s economic growth. Due to the scarcity of fuel, both oil and gas, in the European Union zone, inflation rates can rise, posing a risk of a recession on the continent.

Main Pairs Movement

Several technology companies fell after gaining momentum for a few days; AAPL declined 0.82 percent to $177.07 after advancing for 11 consecutive days.

Meanwhile, INTEL and NVIDIA also declined significantly. INTEL lost 1.46 percent to $51.32, while NVIDIA sank 2.33 percent to $276.19.

USOUSD (WTI Texas) finished higher at $106.45, up 2.26 percent, as prospects for a resolution to the Ukraine conflict dwindled.

The USD’s weakness versus several major currencies was triggered by the revelation of data that was not supportive of the USD. This resulted in a 0.65 percent increase in the EURUSD and a 0.82 percent decline in the USDJPY.

Technical Analysis

GBPUSD (4-Hour Chart)

On Wednesday, the GBPUSD rose further, breaking past the resistance level at 1.3126 and approaching the next resistance level at 1.3188. GBPUSD is now attempting to trade within a broader range of 1.3080 to 1.3188. On the four-hour chart, GBPUSD is trading below its 50-day and 200-day simple moving averages (SMAs) and slightly above its 100-day SMA.

Resistance: 1.3188

Support: 1.3080

EURUSD (4-Hour Chart)

EURUSD strengthened more and broke through our Resistance levels with 1.1221 and 1.1245 are the following resistance levels. In terms of support, we see that previous resistance levels 1.1131 and 1.1156 revert to become the support levels. EURUSD is trading above its 50-day, 100-day, and 200-day simple moving averages on the four-hour chart (SMAs).

Resistance: 1.1221. 1.1245

Support: 1.1131, 1.1156

XAUUSD (4-Hour Chart)

XAUUSD gained up to 0.70 percent following a break of our resistance level at $1936. Currently, XAUUSD is awaiting the release of US labor statistics and updates on the condition of the Russia-Ukraine conflict. At the moment, the movement is seen between $1921 and $1936, with the possibility of breaking through the barrier at $1936. If it breaches $1936, the next resistance levels will be $1948 and $1964, while if it breaches $1921, the next support levels will be $1910 and $1893. On the four-hour chart, XAUUSD is presently trading below its 50- and 100-day simple moving averages, and while it is currently above them, it appears to be attempting to break below its 200-day SMA.

Resistance: $1936, $1948, $1964

Support: $1921, $1910, $1893