EURUSD
On the European front, service PMI figures were in the foreground on the last trading day of the week. The services PMI, which fell into the contraction zone in the Euro Zone as of August 2022, improved with 52.7 in the last reading in February. In Germany, the largest economy in the region, the service sector index tested the highest level since June with 50.9. On the other hand, with the record-breaking announcement of core inflation, the ECB officials' rhetoric about 4% on the interest rate is at the forefront. In the USA, the ISM non-manufacturing index decreased by 0.1 points to 55.1. In the half-year monetary policy presentation to be made by Fed Chairman J. Powell this week, the emphasis on inflation and the need for more interest rate hikes came to the fore.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.0701 |
| Resistance 2 | 1.0670 |
| Resistance 1 | 1.0651 |
| Support 1 | 1.0601 |
| Support 2 | 1.0569 |
| Support 3 | 1.0550 |
Daily Pivot Levels
GBPUSD
The UK will release GDP data on Friday showing how the economy, which narrowly escaped recession in the last three months of 2022, performed in January. Economists expect gross domestic product to increase by just 0.1% in January compared to the previous month. Huw Pill, Chief Economist at the Bank of England (BoE) on Thursday, said the UK economy is showing more momentum than expected and wage growth is proving to be slightly faster than the central bank's forecast last month.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1.2187 |
| Resistance 2 | 1.2118 |
| Resistance 1 | 1.2081 |
| Support 1 | 1.1974 |
| Support 2 | 1.1904 |
| Support 3 | 1.1867 |
Daily Pivot Levels
XAUUSD
Although the gold price moved below the $1850 level on Friday, it started to make up for its losses. This morning, movements are observed above the 1850 $ ounce level. The dollar index is between 104.48-105.00. It is possible to say that cautious and weak movements are dominant in the ounce gold price. This week will be employment week in the USA. On Friday, non-farm employment, unemployment rate will be announced. Before this data, it can be difficult to talk about a new direction under the ounce. There will also be speeches by Fed Chairman Powell during the week. The speeches of Fed officials will also be followed. It's a busy week in terms of data calendar. There is secondary level data for today.
Technical Analysis
| Support & Resistance | Level |
|---|---|
| Resistance 3 | 1882 |
| Resistance 2 | 1869 |
| Resistance 1 | 1862 |
| Support 1 | 1841 |
| Support 2 | 1828 |
| Support 3 | 1820 |
Daily Pivot Levels
BRENT OIL
Oil prices started the new week with sellers. On Friday, it was stated that the United Arab Emirates will leave the OPEC group, according to a report. Along with this news, a sharp downward movement was observed in oil prices. However, when this news was denied, the oil started to make up for its losses. Low growth expectations in China means that demand for oil falls. This puts pressure on prices. Good news for oil prices, Saudi Arabia's Aramco increased its prices to Asia and Europe for the month of April. This was news that supported the prices, as it showed that oil prices are likely to rise in the coming period.
S&P500
Reminding that the Fed is predicted to raise interest rates by 75 basis points in the next three meetings, analysts noted that in addition to Powell's statements, Friday's non-farm employment data could significantly affect the aforementioned expectations. The S&P 500 closed the session up 1.61% at 4.045. As of this morning, the outlook for the S&P 500 futures contract is at 4.052.
