On Tuesday, the US Dollar Index has seen a slight increase, reaching $103.880, up by 0.05%, hinting at cautious optimism in the currency market.
Mercantile Exchange in Chicago | Shutterstock.com
As we step into the US trading session of March 5, 2024, the spotlight falls on key economic indicators alongside anticipated earnings reports. The agenda features major economic events releases such as the US Final Services PMI, ISM Services PMI, and Factory Orders, alongside speeches from FOMC Member Barr. These events are expected to influence market sentiment and trading strategies.
As we gear up for the US trading session, the stage is set with a mix of economic indicators from around the globe, influencing NASDAQ, EUR/USD, and Gold:
Key data released include:
These indicators, covering commodity prices, current accounts, industrial production, and services sector health, provide a complex backdrop for the US session.
In addition to macroeconomic indicators, today's session will also spotlight a series of earnings reports from notable companies. Among them are:
These events and reports are pivotal for shaping today's market dynamics, offering insights into economic health, consumer behavior, and corporate performance across sectors.
On March 5, the NASDAQ (NDX) experienced a slight downturn, closing at 16207.51, a 0.41% decrease. Positioned closely to its pivot point at $16194.31, the index is at a crossroads, suggesting potential shifts in market sentiment. Resistance levels are set at $16367.32, with further challenges at $16560.17 and $16781.39, delineating ceilings for upward movements.
Conversely, support is found at $15927.71, with additional levels at $15672.46 and $15468.26 providing a safety net against further declines.
NASDAQ Price Chart - Source: Tradingview
The Relative Strength Index (RSI) at 70 indicates that NASDAQ is nearing overbought territory, hinting at possible support around the $16,195 mark.
Despite a recent bearish engulfing candle near the 16200 level signaling potential downward momentum, the index's overall trajectory remains bullish, underscored by an upward channel on the 4-hour timeframe. However, sustaining below $16,275 could tilt the market towards bearishness, whereas surpassing this threshold may renew bullish momentum.
Trading Signal:
EUR/USD Price Prediction: Technical Outlook
On March 5, the EUR/USD experienced a minor decline, trading at 1.08516, a decrease of 0.04%. The pair currently hovers above the pivot point of 1.0842, indicating a potential for upward movement. Immediate resistance levels are identified at 1.0864, 1.0885, and 1.0912, potentially capping gains. Support is found at 1.0822, followed by 1.0793 and 1.0767, offering a base against downward pressure.
EUR/USD Price Chart - Source: Tradingview
The Relative Strength Index (RSI) stands at 60, suggesting a balance between buying and selling pressures. Both the 50-day and 100-day Exponential Moving Averages (1.08202 and 1.08133, respectively) signal a supportive backdrop for a buying trend.
However, a triple-top pattern on the 4-hour chart around 1.0884 hints at resistance that could curb further upside. In summary, EUR/USD's trajectory leans bullish above $1.0842, with a breach below this threshold potentially triggering a significant sell-off.
Trading Signal:
Gold (XAU/USD) Price Prediction: Technical Outlook
Gold (XAU/USD) experienced an uptick, climbing 0.55% to close at $2126.05. The precious metal operates above the pivotal mark of $2113.30, underscoring a potent bullish momentum. Immediate resistance lies ahead at $2142.41, with subsequent levels at $2168.94 and $2195.05 potentially challenging further advances.
Conversely, support is established at $2079.98, with deeper cushions at $2036.31 and $1989.70 safeguarding against declines. The Relative Strength Index (RSI), currently at an elevated 80, signals overbought conditions that may precede a correction. Yet, the ongoing geopolitical strains, notably the Gaza tensions, fortify gold's allure as a safe haven, sustaining its upward trajectory.
Gold (XAU/USD) Price Chart - Source: Tradingview
A bullish engulfing pattern above $2080 on the daily chart validates this surge, with the potential to approach the resistance levels specified. However, a cautious eye remains on the $2142 threshold, as a close below might trigger a pullback. In essence, Gold maintains a bullish outlook above $2115, with a descent below this juncture possibly igniting a rapid sell-off.
Trading Signal:
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