NFP WEEK ANALYSIS UPDATE:
This week has been dynamic for trading enthusiasts, featuring a wealth of data, impactful speeches, testimonials, inflation alerts, record highs in both future and spot gold, and fluctuating currency movements. Notably, the European Central Bank (ECB) opted to maintain current interest rates post-ECB Press Conference. The EURUSD responded positively, experiencing an upward trend and reaching 1.0902, reflecting a 0.0007% positive change.
Financial Developments:
Powell’s Senate testimony and statements on banks collaborating with real estate weakened the Dollar, leading to significant market shifts.
USDJPY witnessed a crash, XAUUSD rose, and major changes occurred in currencies, metals, stocks, and indices.
Bitcoin’s substantial movement yielded excellent results, leaving market participants undecided on the direction to pursue.
Upcoming Events and Elections:
Anticipation surrounds the upcoming USA elections, expected to bring about significant economic changes and potential improvements in the Dollar Index.
Governor Jerome Powell highlighted the government’s commitment to job creation, projecting the addition of 200k jobs against January’s 353k, with a forecasted annual rise of 4.4% in average hourly earnings.
Global Perspectives:
Japanese policymakers expressed optimism in their monetary policy, with Governor Kazuo Ueda stating the possibility of seeking an exit from stimulus while targeting a 2% inflation rate, subsequently boosting the Yen.
Pre-opening sessions indicate positive indicators for the S&P 500, Russell 2000, and Nasdaq100.
Market Analysis:
Germany’s 2-3-5 Year Yields remain stable, contributing to a sense of financial security.
In the USDJPY market, a notable decline occurred, reaching 148.50, while XAUUSD achieved an all-time high at $2170.
Technical Levels and Analysis:
Key Support and Resistance Levels for XAU/USD are outlined for informed trading decisions.
Support Levels (S):
- S1: 2138
- S2: 2112
- S3: 2096
- S4: 2080
- S5: 2040
Resistance Levels (R):
- R1: 2170
- R2: 2190
- R3: 2204
- R4: 2219
- R5: 2239
Moreover, discerning traders would do well to heed the following key price zones for XAU/USD:
Day 1 (D1) Frame:
SELLING LEVELS IN GOLD(R): $2160-$2180-$2195-$2210-$2230.
BUYING LEVELS IN GOLD (S): $2070-2035-2010-2000-1990.
These levels offer strategic entry and exit points for informed decision-making.
These levels offer strategic entry and exit points for informed decision-making.
Insights and Forecasts:
Our analysis attributes the highs and lows in USD pairs to the Federal Reserve’s interest rate decisions, geopolitical tensions, and Powell’s recent testimony.
The upcoming release of NFP data and the WASDE report on Friday, March 8, 2024, will further influence XAUUSD and other major USD pairs.
In conclusion, this week’s market dynamics reflect a blend of economic indicators, geopolitical events, and central bank actions, setting the stage for traders to navigate strategic opportunities.
