EUR/USD Daily Forecast – Test Of Support At 1.1900

EUR/USD Video 08.03.21.

Euro Is Losing Ground Against U.S. Dollar

EUR/USD is currently trying to settle below 1.1900 while the U.S. dollar is attempting to gain more ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get above the resistance at the 92 level and is slowly moving towards the next resistance level which is located at 92.25. If the U.S. Dollar Index gets to the test of this level, EUR/USD will find itself under more pressure.

Today, foreign exchange market traders have  chance to take a look at Industrial Production report from Germany. Industrial Production decreased by 2.5% month-over-month in January compared to analyst consensus which called for growth of 0.2%.

The disappointing report from Germany may put additional pressure on the euro which is moving lower because of Europe’s economic problems and rising yields in the U.S.

Currently, the yield of 10-year Treasuries is trying to settle above 1.59% while the yield of 30-year Treasuries is testing the 2.31% level. If Treasury yields continue to move higher, the U.S. dollar may get additional support.

Technical Analysis

eur usd march 8 2021

EUR/USD is currently trying to settle below the support level at 1.1900. RSI is close to the oversold territory but there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD settles below the support at 1.1900, it will head towards the next support level at 1.1880. A move below this level will push EUR/USD towards the next support at 1.1850. In case EUR/USD declines below the support at 1.1850, it will head towards the support at 1.1830.

On the upside, EUR/USD needs to stay above 1.1900 to have a chance to gain upside momentum in the near term. The next resistance level for EUR/USD is located at 1.1925.

If EUR/USD gets above the resistance at 1.1925, it will head towards the next resistance level at 1.1965. A move above this level will open the way to the test of the resistance at 1.2000.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Is Flat Against U.S. Dollar At The Start Of The Week

GBP/USD Video 08.03.21.

Traders Focus On Yields In Absence Of Economic News

GBP/USD is currently trying to settle back above the resistance at 1.3835 while the U.S. dollar is flat against a broad basket of currencies.

The U.S. Dollar Index is testing the nearest resistance level at 92.00. If this test is successful, the U.S. Dollar Index will head towards the next resistance level at 92.25 which will be bearish for GBP/USD.

There are no important economic reports scheduled to be published in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment and U.S. government bond market.

Treasury yields remain close to multi-month highs after U.S. Senate passed the huge coronavirus aid package. The market is worried about inflation so traders sell Treasuries, pushing their yields higher.

Rising yields continue to provide support to the American currency, but it remains to be seen whether further upside in yields will be able to help U.S. dollar as the huge stimulus bill may ultimately serve as a bearish catalyst.

Technical Analysis

gbp usd march 8 2021

GBP/USD is testing the nearest resistance level at 1.3835. If GBP/USD manages to settle above this level, it will head towards the next resistance level at 1.3865. This resistance level has been recently tested and proved its strength.

In case GBP/USD settles above 1.3865, it will head towards the next resistance at the 20 EMA at 1.3900. A move above the 20 EMA will signal that GBP/USD will try to gain upside momentum. In addition, GBP/USD will have a good chance to settle back in the 1.3900 – 1.4000 range which will be a welcome development for GBP/USD bulls.

On the support side, the nearest support level for GBP/USD is located at the 50 EMA at 1.3800. If GBP/USD declines below the 50 EMA, it will move towards the support at 1.3780. A move below the support at 1.3780 will push GBP/USD towards the next support level which is located at 1.3745. Most likely, GBP/USD will get significant support from traders at this level as there was plenty of interest near 1.3745 back in January.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Test Of Support At 1.2670

USD/CAD Video 05.03.21.

U.S. Dollar Is Mostly Flat Against Canadian Dollar

USD/CAD has recently made an attempt to settle above the resistance at the 50 EMA at 1.2715 but lost momentum and pulled back while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance at the 92 level. RSI is close to the overbought territory but there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If the U.S. Dollar Index settles above 92, it will head towards the next resistance level at 92.25 which will be bullish for USD/CAD.

Today, U.S. reported that Unemployment Rate declined from 6.3% in January to 6.2% in February compared to analyst consensus of 6.3%. Meanwhile, Non Farm Payrolls report indicated that the U.S. economy added 379,000 jobs in February. The report significantly exceeded analyst expectations.

Foreign exchange market traders continued to monitor the developments in the U.S. government bond market. Today, Treasury yields failed to continue their upside move but remained close to multi-month highs, providing support to the American currency.

Meanwhile, the continuation of the oil price rally provided some support to Canadian dollar, but this support was not sufficient enough for an upside move.

Technical Analysis

usd cad march 5 2021

USD to CAD lost upside momentum and is trying to settle below the nearest support level at the 20 EMA at 1.2670. If this attempt is successful, it will head towards the next support level which is located at 1.2625. A move below the support at 1.2625 will push USD to CAD towards the next support at 1.2590.

On the upside, USD to CAD needs to stay above the 20 EMA to have a chance to gain upside momentum in the near term. The next resistance level is located at 1.2700.

In case USD to CAD gets above this level, it will head towards the 50 EMA at 1.2715. A move above the 50 EMA will push USD to CAD towards the resistance at 1.2750. If USD to CAD settles above this level, it will move towards the resistance at 1.2775.

For a look at all of today’s economic events, check out our economic calendar.

Why Tesla Shares Are Down By 10% Today?

Tesla Video 05.03.21.

Tesla Moves Lower Amid Broad Sell-Off In EV Stocks

We have recently discussed why shares of Tesla are in a bear market but the situation is developing fast, and Tesla stock moved to new lows.

Today, Tesla shares are down by about 10% while S&P 500 is losing some ground in volatile trading. The main reason for the current downside move is the sell-off in the electric vehicle space. Investors are rushing out of their speculative EV investments as they look worried about valuation of high-flying tech stocks.

In my opinion, the recent rise of U.S. Treasury yields has pushed investors to evaluate their portfolios and focus on the current valuation of the companies.

Valuations have been rich for many months. However, the market has recently started to pay attention to them so valuations may ultimately begin to have a notable impact on the trading dynamics of EV stocks.

What’s Next For Tesla?

In Tesla’s case, the stock continues to trade at very high levels on almost every multiple so the company’s market capitalization depends on the market mood.

The stock has already declined by more than 35% from the highs that were reached back in January, so it may soon attract bargain hunters who will be willing to bet on the leading EV company after the major pullback.

At the same time, Tesla cannot count on any support from valuation-oriented investors as it remains very expensive. Thus, the stock will likely need a change of market mood towards riskier stocks in order to find support and get back to the upside mode.

It should be noted that legacy automakers like Ford or General Motors are trading close to their recent highs so the current sell-off in EV stocks highlights investors’ concern about their valuation rather than any doubts about the future of the auto industry.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Remains Under Strong Pressure Ahead Of The Weekend

Silver Video 05.03.21.

Silver Continues To Lose Ground

Silver is losing ground as Treasury yields continue to rise while the U.S. dollar remains strong against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 91.75 and is trying to settle above the next resistance level at 92. If this attempt is successful, the U.S. Dollar Index will gain additional upside momentum which will be bearish for silver and gold price today.

Gold is testing the support at the $1700 level. If this test is successful, gold will move towards the support at $1675 which will be bearish for silver and other precious metals.

Gold/silver ratio has recently managed to settle above the 20 EMA at 66.35 and is currently trying to settle above the 67 level. If this attempt is successful, gold/silver ratio will head towards the next material resistance level at the 50 EMA at 68.75 which will be bearish for silver.

Traders will remain focused on the U.S. government debt market as rising yields remain a significant bearish catalyst for silver and gold as precious metals pay no interest. If yields continue to move higher, precious metals will lose more ground.

Technical Analysis

silver march 5 2021

Silver is currently trying to settle below the support at $25.20. If this attempt is successful, it will head towards the next support level which is located at $25.00.

A move below the support at $25.00 will open the way to the test of the support at $24.70. In case silver declines below this level, it will head towards the next support at $24.50. A successful test of this level will open the way to the test of the support at $24.20.

On the upside, silver needs to get back above $25.20 to have a chance to develop upside momentum in the near term. The next resistance level for silver is located at $25.55. If silver settles above this level, it will move towards the next resistance at $25.85. In case silver gets above this level, it will head towards the 50 EMA at $26.35.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Retreat Despite Strong Non Farm Payrolls Report

Treasury Yields Continue To Move Higher After Powell Fails To Calm Markets

Yesterday, S&P 500 found itself under pressure while Treasury yields moved higher after Fed Chair Jerome Powell did not signal that the Fed would do anything specific about the recent sell-off in the bond market.

Powell stated that the Fed was monitoring the current situation and that it had tools to support markets if necessary. However, investors clearly wanted to hear more about potential measures to stop the upside trend in Treasury yields.

Meanwhile, rising yields provided additional support to the U.S. dollar which rallied against a broad basket of currencies. Not surprisingly, precious metals were under pressure in such environment. Currently, gold is trying to settle below the $1700 level. If this attempt is successful, shares of gold miners will have a challenging start of today’s trading session.

Oil Tries To Settle Above The $65 Level As OPEC+ Maintains Current Production Cuts

OPEC+ surprised the market as it decided to maintain current production cuts, including Saudi Arabia’s voluntary cut of 1 million barrels per day (bpd). Other OPEC+ members will also keep current production cuts in place although Russia was allowed to increase its production due to seasonal needs.

Most analysts expected that at least 1 million bpd will return to the market in April so OPEC+ decision was not priced in by the market. As a result, WTI oil rallied and is currently trying to settle above the psychologically important $65 level.

I’d note that the recent EIA Weekly Petroleum Status Report indicated that U.S. domestic oil production did not fully recover after the recent blow dealt by cold weather so the current market situation remains bullish.

Unemployment Rate Declines To 6.2%

The U.S. has just provided Non Farm Payrolls and Unemployment Rate reports for February.

Non Farm Payrolls report indicated that the U.S. economy added 379,000 jobs in February compared to analyst consensus of 182,000. Meanwhile, Unemployment Rate declined from 6.3% to 6.2% while analysts expected that it would remain unchanged at 6.3%.

Interestingly, S&P 500 futures are losing ground after the release of the better-than-expected employment reports. Perhaps, the market is worried that the economy will get overheated after the new round of stimulus.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Daily Forecast – U.S. Dollar Continues To Move Higher Against Australian Dollar

AUD/USD Video 05.03.21.

Australian Dollar Remains Under Pressure Against U.S. Dollar

AUD/USD is currently trying to get to the test of the support at 0.7665 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle above the resistance at 91.75 and is moving towards the next resistance level at 92. If the U.S. Dollar Index settles above the 92 level, it will head towards the next resistance at 92.25 which will be bearish for AUD/USD.

Rising oil failed to provide sufficient support to the Australian dollar and other commodity-related currencies as traders focused on rising U.S. Treasury yields which is bullish for the American currency.

Currently, the yield of 10-year Treasuries is trying to settle above 1.55% while the yield of 30-year Treasuries is testing the 2.30% level. Bond investors are worried about higher inflation in the U.S. which is expected to be boosted by the huge coronavirus aid package.

In addition, Fed Chair Jerome Powell has recently signaled that the Fed was not worried about inflation and did not propose any measures to deal with the recent rise of Treasury yields. Powell’s dovish comments put additional pressure on U.S. government bonds and provided more support to U.S. dollar.

Technical Analysis

aud usd march 5 2021

AUD/USD managed to get below the support level at 0.7700 and is moving towards the next support level at 0.7665. If AUD/USD manages to settle below this level, it will head towards the next support at 0.7635.

A successful test of the support at 0.7635 will open the way to the test of the next support level which is located at 0.7600.

On the upside, AUD/USD needs to stay above 0.7665 to have a chance to gain upside momentum in the near term. The nearest resistance level for AUD/USD is located at 0.7700.

In case AUD/USD gets above this level, it will head towards the next resistance at the 50 EMA at 0.7725. A move above this level will push AUD/USD towards the resistance at 0.7760.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Euro Continues To Lose Ground Against U.S. Dollar

EUR/USD Video 05.03.21.

Rising Treasury Yields Provide Support To U.S. Dollar

EUR/USD is currently trying to settle below the support at 1.1965 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the resistance at 91.50 and is testing the next resistance level which is located at 91.75. In case the U.S. Dollar Index settles above this level, it will move towards the next resistance at the 92 level which will be bearish for EUR/USD.

Yesterday, EU reported that Euro Area Retail Sales declined by 5.9% month-over-month in January compared to analyst consensus which called for a decline of 1.1%. On a year-over-year basis, Euro Area Retail Sales decreased by 6.4%. The report was much worse than analyst expectations and highlighted the current problems of the European economy. Meanwhile, U.S. Treasury yields moved to multi-month highs. In combination, these factors put significant pressure on the euro.

EU has also reported that Unemployment Rate remained unchanged at 8.1% (the previous reading was revised from 8.3% to 8.1%) but the market did not pay much attention to this data as it remained focused on rising yields and disappointing Euro Area Retail Sales report.

Technical Analysis

eur usd march 5 2021

 

EUR/USD gained strong downside momentum and is testing the support level at 1.1965. If this test is successful, EUR/USD will move towards the next support level which is located at 1.1925.

RSI remains in the moderate territory despite the strength of the recent downside move so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case EUR/USD declines below the support at 1.1925, it will move towards the next support level at 1.1900. A move below this level will open the way to the test of the support at 1.1880.

On the upside, EUR/USD needs to get back above 1.1965 to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.2000. If EUR/USD settles above this level, it will head towards the next support level at 1.2040.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – U.S. Dollar Stays Strong Ahead Of The Weekend

GBP/USD Video 05.03.21.

British Pound Remains Under Pressure

GBP/USD is currently trying to settle below the support at 1.3900 while the U.S. dollar continues to move higher against a broad basket of currencies.

Yesterday, the U.S. Dollar Index managed to get above the resistance at 91.50 as Treasury yields rallied. Today, Treasury yields remain close to multi-month highs, providing additional support to the American currency. The nearest resistance level for the U.S. dollar is located at 91.75. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at the 92 level which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at U.S. employment reports. Non Farm Payrolls report is projected to show that the economy added 182,000 jobs in February. The recent ADP Employment Change report was worse than expected, and it remains to be seen whether employment gains were as significant as analysts project. Meanwhile, Unemployment Rate report is projected to show that Unemployment Rate remained unchanged at 6.3% in February.

Technical Analysis

gbp usd march 5 2021

GBP/USD gained downside momentum and is trying to settle below the support at 1.3900. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If GBP/USD settles below 1.3900, it will head towards the next support level at 1.3865. From a big picture point of view, a move out of the 1.3900 – 1.4000 range will be a worrisome development for GBP/USD bulls.

A move below 1.3865 will push GBP/USD towards the support at 1.3835. In case GBP/USD declines below 1.3835, it will move towards the next support near the 50 EMA at 1.3800.

On the upside, the nearest resistance level for GBP/USD is located at the 20 EMA at 1.3920. If GBP/USD settles above this level, it will move towards the next resistance level at 1.3950. A successful test of the resistance at 1.3950 will push GBP/USD towards the next resistance at 1.3980.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Moves Higher As Oil Rallies

USD/CAD Video 04.03.21.

U.S. Dollar Is Under Pressure Against Canadian Dollar

USD/CAD is once again testing the support level at 1.2590 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 91.10 but failed to develop sufficient upside momentum and declined towards the 91 level. The nearest support level for the U.S. Dollar Index is located at 90.90. If the U.S. Dollar Index manages to settle below this level, it will head towards the 50 EMA at 90.70 which will be bearish for USD/CAD.

Today, the U.S. reported that Initial Jobless Claims increased from 736,000 (revised from 730,000) to 745,000 compared to analyst consensus of 750,000. Continuing Jobless Claims declined from 4.42 million to 4.3 million, in line with the analyst consensus. U.S. employment reports were mostly in line with analyst expectations and did not have much impact on the U.S. dollar.

U.S. Treasury yields pulled back a bit but remain close to recent highs which may provide additional support to the American currency.

Meanwhile, Canadian dollar got a boost as WTI oil rallied above the $64 level on reports that OPEC+ will keep its current production cuts intact. Saudi Arabia will keep its voluntary production cuts of 1 million barrels per day (bpd) for the month of April, which is a major surprise for the market.

Technical Analysis

usd cad march 4 2021

USD to CAD continues its attempts to settle below the nearest support level at 1.2590. If USD to CAD manages to settle below this level, it will head towards the next support at 1.2550.

In case USD to CAD declines below the support at 1.2550, it will continue its downside move and head towards the next support level at 1.2525.

On the upside, the nearest resistance level for USD to CAD is located at 1.2625. If USD to CAD gets above this level, it will move towards the 20 EMA at 1.2660. A move above the 20 EMA will push USD to CAD towards the next resistance level at 1.2700.

For a look at all of today’s economic events, check out our economic calendar.

Why Shares Of General Electric Continue To Move Higher?

General Electric Video 04.03.21.

General Electric Stock Gets A Boost From Analyst Upgrades

Shares of General Electric have started the year on a strong note and gained about 25% year-to-date. Today, the stock tested multi-month highs at the $14 level after Morgan Stanley upgraded the company’s shares and changed its price target from $13 to $17.

Morgan Stanley believes that the upcoming investor day presentation, which is scheduled to take place on March 10, will serve as an additional upside catalyst for the stock.

Earlier, UBS increased its price target for General Electric stock from $14 to $15 which also provided significant support to the company’s shares.

In late January, General Electric released its fourth-quarter report which beat analyst estimates on both earnings and revenue. The company delivered solid cash flow performance, and the market continued to buy the turnaround story.

What’s Next For General Electric?

The current rally of General Electric stock started back in October when traders began to pay more attention to cyclical stocks. The rally continued month after month and pushed the company’s valuation to high levels. Currently, General Electric shares are trading at more than 25 forward P/E for 2022 which looks like a rich valuation for an estabilished cyclical company.

However, the market believes that the upcoming U.S. economic stimulus package and the ultimate improvements on the coronavirus front will provide enough support to the company’s business. In addition, General Electric’s performance is expected to improve in the next several years which is bullish for the stock.

The near-term fate of General Electric stock will depend on whether cyclical stocks will remain strong amid inflation fears, which are highlighted by the recent increase in the U.S. government bond yields.

If the market continues to buy cyclical stocks, General Electric stock will have a great opportunity to develop additional downside momentum as the company also has internal upside catalysts.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Stays Near The Key Support At $25.85

Silver Video 04.03.21.

Silver Remains Under Pressure

Silver has recently made an attempt to settle below the support at $25.85 while the U.S. dollar continued to move higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance level at 91.10. If this attempt is successful, the U.S. Dollar Index will gain additional upside momentum and head towards the resistance at 91.30 which will be bearish for silver and gold price today.

It should be noted that U.S. Treasury yields remain close to multi-month highs which puts additional pressure on precious metals. If Treasury yields move to new highs, silver will move lower.

Meanwhile, gold made an attempt to settle below the $1700 level but failed to develop sufficient downside momentum. In case gold declines below this level, it will head towards the next support level at $1675 which will be bearish for silver.

Gold/silver ratio is currently testing the resistance level at the 20 EMA at 66.15. If gold/silver ratio settles above the 20 EMA, it will gain additional upside momentum which will put more pressure on silver.

Technical Analysis

silver march 4 2021

Silver continues its attempts to settle below the nearest support level at $25.85. Silver has recently made an attempt to settle below this level but lost momentum and rebounded closer to the $26 level.

If silver declines below $25.85, it will head towards the next support level which is located at $25.55. A move below the support at $25.55 will open the way to the test of the support at $25.20. In case silver gets below this level, it will continue its downside move and get to the test of the next support level at $25.00.

On the upside, the nearest resistance level for silver is located at the 50 EMA at $26.45. If silver settles above this level, it will head towards the next resistance at $26.70. A move above the resistance at $26.70 will push silver towards the 20 EMA at $26.85.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Mixed After The Recent Pullback

Initial Jobless Claims Increase To 745,000

The U.S. has just released Initial Jobless Claims and Continuing Jobless Claims reports.

The Initial Jobless Claims report indicated that 745,000 Americans filed for unemployment benefits in a week compared to analyst consensus of 750,000. Meanwhile, Continuing Jobless Claims decreased from 4.42 million to 4.3 million, fully in line with the analyst consensus.

S&P 500 futures remain little changed after the release of employment reports as traders evaluate their next moves after the recent pullback.

All Eyes On OPEC+ Meeting

Today, OPEC+ members are meeting to discuss the current situation in the oil market and determine the size of production cuts for April.

Saudi Arabia is expected to end its voluntary production cut of 1 million barrels per day, but other moves remain a mystery. Recent reports indicated that OPEC+ may keep existing production cuts for the month of April as the situation on the coronavirus front remains challenging.

At the same time, some members like Russia may be pushing for increasing production as demand continues to rebound.

Currently, WTI oil is gaining ground and tries to settle above $62 as traders bet that OPEC+ will keep current production cuts in place. It should be noted that OPEC+ decisions are not always predictable so oil-related stocks may have a volatile trading session today.

Gold Made An Attempt To Settle Below The $1700 Level

Gold remains under pressure as traders focus on rising U.S. Treasury yields. Precious metals pay no interest so rising yields make them less attractive for investors.

Meanwhile, shares of most gold miners continue to trend lower which is not surprising given the current mood in the gold market.

If gold manages to settle below $1700, it will gain additional downside momentum and head towards the next support level at $1675 which will be bearish for gold miners’ shares. Meanwhile, traders will have to monitor the developments in the U.S. government bond market as the continuation of the current trend will put more pressure on precious metals.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Daily Forecast – U.S. Dollar Pulls Back Against Australian Dollar

AUD/USD Video 04.03.21.

Australian Dollar Gains Ground Against U.S. Dollar

AUD/USD is testing the resistance at 0.7800 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the nearest resistance level at 91.10. If this attempt is successful, the U.S. Dollar Index will head towards the resistance at 91.30 which will be bearish for AUD/USD. However, it should be noted that AUD/USD may ignore dollar’s strength today as the Australian dollar is supported by improved sentiment towards commodity-related currencies.

Today, Australia reported that Retail Sales increased by 0.5% month-over-month in January compared to analyst consensus which called for growth of 0.6%. The report was mostly in line with analyst expectations as the Australian economy continued to rebound thanks to the country’s success in virus containment.

Later, traders’ attention will shift to employment reports from the U.S. Analysts expect that Initial Jobless Claims will increase from 730,000 to 750,000 while Continuing Jobless Claims will decline from 4.42 million to 4.3 million.

Traders will also continue to monitor the situation in the U.S. government bond market. Treasury yields are pulling back a bit but remain close to multi-month highs which is bullish for the American currency.

Technical Analysis

aud usd march 4 2021

AUD/USD managed to settle above the 20 EMA at 0.7790 and is trying to settle above the resistance level at 0.7800. If this attempt is successful, AUD/USD will get to another test of the next resistance level at 0.7820. This resistance level has already been tested several times in recent trading sessions and proved its strength.

If AUD/USD gets above the resistance at 0.7820, it will head towards the next resistance at 0.7860. A move above this level will open the way to the test of the resistance at 0.7875.

On the support side, AUD/USD will likely get material support in the 0.7780 – 0.7800 area. If AUD/USD settles below the support level at 0.7780, it will head towards the next support level which is located at 0.7760.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Test Of Support At 1.2060

EUR/USD Video 04.03.21.

U.S. Dollar Tries To Gain More Ground Against Euro

EUR/USD is currently trying to settle below the support at 1.2060 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is trying to get to the test of the resistance level at 91.10. If the U.S. Dollar Index gets above this level, it will head towards the resistance at 91.30 which will be bearish for EUR/USD.

Yesterday, EU reported that Euro Area Services PMI increased from 45.4 in January to 45.7 in February compared to analyst consensus of 44.7. Numbers below 50 show contraction. The report was a bit better than expected, but it failed to provide additional support to euro.

Today, foreign exchange market traders will focus on Euro Area Retail Sales data. Analysts expect that Retail Sales declined by 1.1% month-over-month in January after growing by 2% in December. On a year-over-year basis, Retail Sales are projected to decrease by 1.2%.

Traders will also have a chance to take a look at Euro Area Unemployment Rate report for January. Unemployment Rate is projected to remain unchanged at 8.3%.

Technical Analysis

eur usd march 4 2021

EUR/USD is testing the nearest support level at 1.2060. If this test is successful, EUR/USD will move towards the next support level which is located at 1.2040.

A move below 1.2040 will push EUR/USD towards the support at 1.2000. There are no important levels between 1.2000 and 1.2040 so this move may be fast. In case EUR/USD declines below the support at 1.2000, it will head towards the next support level at 1.1965.

On the upside, a move above 1.2060 will push EUR/USD towards the next resistance at 1.2080. If EUR/USD gets above this level, it will head towards the resistance level which is located at the 50 EMA at 1.2100. The 20 EMA is in the nearby, so this resistance level is set to be a material obstacle on the way up for EUR/USD.

If EUR/USD gets above the 50 EMA, it will gain additional upside momentum and head towards the next resistance level at 1.2130.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – Resistance At 1.3950 Stays Strong

GBP/USD Video 04.03.21.

British Pound Tries To Gain Ground Against U.S. Dollar

GBP/USD continues its attempts to settle above the resistance at 1.3950 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the 91 level. If this attempt is successful, the U.S. Dollar Index will head towards the next resistance level which is located at 91.10. A move above this level will open the way to the test of the resistance at 91.30 which will be bearish for GBP/USD.

Yesterday, the U.S. released ADP Employment Change report which indicated that private businesses hired 117,000 workers in February compared to analyst consensus of 177,000.

Today, foreign exchange market traders will have a chance to take a look at another set of U.S. employment data. Initial Jobless Claims report is projected to show that 750,000 Americans filed for unemployment benefits in a week. Meanwhile, Continuing Jobless Claims are expected to decline from 4.42 million to 4.3 million.

Technical Analysis

gbp usd march 4 2021

GBP/USD is currently testing the nearest resistance level at 1.3950. GBP/USD managed to get above this level during yesterday’s trading session but faced significant resistance near 1.4000 and pulled back below 1.3950.

If GBP/USD settles above 1.3950, it will head towards the next resistance level at 1.3980. A move above this level will push GBP/USD towards the resistance at 1.4000. In case GBP/USD gets above the resistance at 1.4000, it will gain additional upside momentum and head towards the resistance at 1.4030.

On the support side, the nearest support level for GBP/USD is located at the 20 EMA at 1.3930. A move below this level will push GBP/USD towards the support at 1.3900. If GBP/USD declines below 1.3900, it will head towards the next support level which is located at 1.3865.

I’d note that GBP/USD continues to stabilize in a wide trading range between the support at 1.3900 and the resistance at 1.4000 and has a good chance to continue its upside trend once it manages to get above 1.4000.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Another Test Of Support At 1.2590

USD/CAD Video 03.03.21.

U.S. Dollar Is Losing Ground Against Canadian Dollar

USD/CAD continues its attempts to settle below the support at 1.2590 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the 91 level but failed to develop sufficient upside momentum and pulled back closer to 90.80. The nearest support level for the U.S. Dollar Index is located at the 50 EMA at 90.70. In case the U.S. Dollar Index declines below this support level, it will head towards the next support at the 20 EMA at 90.60 which will be bearish for USD/CAD.

Today, foreign exchange market traders had a chance to take a look at U.S. ADP Employment Change report which indicated that private businesses hired 117,000 workers in February compared to analyst consensus of 177,000.

Meanwhile, the final reading of the U.S. Services PMI report indicated that Services PMI increased from 58.3 in January to 59.8 in February compared to analyst consensus of 58.9. The services segment of the U.S. economy continues to rebound as the vaccination program improves the situation on the coronavirus front.

Technical Analysis

usd cad march 3 2021

The technical picture for USD to CAD has not changed much compared to the previous trading session. Currently, USD to CAD is trying to settle below the support at 1.2590, but this support level continues to show its strength.

In case USD to CAD manages to settle below the support at 1.2590, it will head towards the next support level at 1.2550. A successful test of the support at 1.2550 will push USD to CAD towards the next support at 1.2525.

On the upside, the nearest resistance level for USD to CAD is located at 1.2625. If USD to CAD manages to settle above this level, it will head towards the next resistance at the 20 EMA at 1.2660. This resistance level has already been tested during the current trading session and proved its strength.

In case USD to CAD gets above the 20 EMA, it will move towards the resistance at 1.2700. A successful test of this level will push USD to CAD towards the resistance at the 50 EMA at 1.2715.

For a look at all of today’s economic events, check out our economic calendar.

Why Shares Of Dollar Tree Are Rallying Today?

Dollar Tree Video 03.03.21.

Dollar Tree Stock Moves Higher After Solid Earnings Report

Shares of Dollar Tree are gaining more than 3.5% in today’s trading session after the company released its fourth-quarter earnings report.

Dollar Tree reported revenue of $6.77 billion and GAAP earnings of $2.13 per share, beating analyst estimates on earnings and meeting them on revenue. Same-store sales showed solid growth in all segments, and the company continued to expand the number of its stores.

Dollar Tree also stated that the combination of Dollar Tree And Family Dollar stores proved to be a great format for small towns and that such Combination Stores were delivering a same-store sales lift of greater than 20% on average.

The market is clearly pleased with the report which showed that Dollar Tree continued to perform well in the fourth quarter. In addition, the company’s Board of Directors increased the share repurchase authorization by $2 billion which served as a bullish catalyst. At current stock price, Dollar Tree will repurchase about 19.4 million shares, while the number of shares outstanding is about 236 million.

What’s Next For Dollar Tree?

Shares of Dollar Tree had a challenging start of 2021 as traders bet that the healthy recovery of the economy will put pressure on discount stores. Shares of Dollar Tree’s peers were under pressure as well.

However, the strong fourth-quarter report and the decision to increase share buyback may serve as sufficient upside catalysts which may stop the local downside trend.

It should be noted that the U.S. will soon deliver a huge $1.9 trillion stimulus package which will boost consumer activity. It remains to be seen how much of $1,400 stimulus checks will be put into purchases in discount stores, but the new package will certainly boost sales of most retailers.

The stock is currently trading at about 17 forward P/E which is not very cheap, but the whole market is expensive right now so many investors will likely find Dollar Tree attractive enough at current levels.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Strong Dollar And Rising Yields Put Pressure On Silver

Silver Video 03.03.21.

Silver Remains Under Pressure

Silver managed to settle below the 50 EMA at $26.45 and is moving towards the next support at $25.85 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index found support at the 50 EMA at 90.70 and rebounded above the resistance at 90.90. Currently, the U.S. Dollar Index is heading towards the next resistance level at 91.10.

If the U.S. Dollar Index settles above this level, it will head towards the resistance at 91.30 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.

Gold continues to move lower and is trying to get to the test of the $1700 level. RSI has recently moved into the oversold territory but there is still plenty of room to gain additional downside momentum in case the right catalysts emerge. If gold manages to settle below $1700, it will gain additional downside momentum which will be bearish for silver.

Gold/silver ratio continues its attempts to settle above the resistance at 65.50. The next resistance level is located at the 20 EMA at 66.15. If gold/silver ratio manages to get above the 20 EMA, silver will find itself under additional pressure.

Meanwhile, U.S. Treasury yields continue to rebound after the recent pullback, which is bearish for precious metals that pay no interest.

Technical Analysis

silver march 3 2021

Silver declined below the 50 EMA at $26.45 and is moving towards the support level which is located at $25.85. Yesterday, silver found strong support at this level, but it may have a better chance to settle below $25.85 on the second attempt.

A move below this level will push silver towards the next support at $25.55. In case silver declines below the support at $25.55, it will head towards the support level which is located at $25.20.

On the upside, silver needs to get back above the 50 EMA to have a chance to gain upside momentum in the near term. If silver settles above this level, it will get to the test of the next resistance at $26.70. A move above the resistance at $26.70 will push silver towards the resistance which is located near the 20 EMA at $27.00.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Retreat After Disappointing ADP Employment Change Report

ADP Employment Change Report Disappoints

The U.S. has just released ADP Employment Change report for February. The report indicated that private businesses hired 117,000 workers compared to analyst consensus of 177,000. Back in January, private businesses added 174,000 jobs.

The disappointing report has put some pressure on S&P 500 futures in premarket trading, and they have pulled back into the negative territory.

This week, traders will remain focused on U.S. employment data. Initial Jobless Claims and Continuing Jobless Claims reports will be published on Thursday while Non Farm Payrolls and Unemployment Rate reports will be released on Friday. It remains to be seen whether the market will be able to gain more upside momentum in case employment reports are weaker than expected.

Oil Moves Higher Despite Rising Inventories

The recent API Crude Oil Stock Change report indicated that crude inventories increased by 7.36 million barrels compared to analyst consensus which called for a decline of 1.85 million barrels.

While the inventory report was disappointing, WTI oil managed to get back above the $60 level on hopes that OPEC+ will leave current production cuts intact.

According to recent reports, OPEC+ is discussing the possibility of keeping current production cuts in place for April as demand recovery remains fragile due to the continued problems on the coronavirus front.

Saudi Arabia is projected to end its voluntary production cuts of 1 million barrels per day (bpd), so the oil market will have to deal with rising supply in any scenario.

OPEC+ ministers will meet on Thursday, and the oil market will likely remain volatile until the end of the week.

U.S. Treasury Yields Continue To Rebound

Treasury yields continue to move higher after the pullback at the end of February as traders remain focused on the upcoming stimulus package which could bring higher inflation.

The yields of 10-year Treasuries have increased to 1.46% while the yields of 30-year Treasuries are trying to settle above 2.25%. Rising yields did not put much pressure on stocks today, but S&P 500 futures are already moving lower in premarket trading. Higher yields may ultimately hurt high-flying tech stocks which will be bearish for the general market.

For a look at all of today’s economic events, check out our economic calendar.