Daily Price Outlook

The GBP/USD pair is currently trading at 1.2045, reflecting a 0.20% increase in the past 24 hours. The pair has been supported by the weakness of the US dollar.

UK Construction Sector Sees Fastest Economic Activity Growth in February

The UK construction sector experienced a significant increase in overall economic activity in February after a two-month decline. The UK PMI construction index rose to a 9-month high of 54.1 in February from 48.4 in January, surpassing consensus expectations of 49.1.

The commercial construction sector performed the best in February with an index of 55.3, showing the fastest increase in nine months. Civil engineering activities also increased in February (index 52.3), but at a slower pace.

Based on the latest data, employment levels in the construction industry have seen a slight increase. Furthermore, the significant rise in output in the previous month presents a positive outlook for the construction industry as a whole. This data has had a positive impact on the GBP, indicating that the UK's construction industry is improving.

US Economy

In the US, inflationary pressures have put Jerome Powell, the head of the Federal Reserve, in the spotlight as he prepares to address Congress today. Powell is expected to provide an update on the state of the US economy and discuss the central bank's plans for monetary policy.

In addition, the non-farm payroll data for February is set to be released on Friday. It is expected to show a significant drop compared to January, bringing job openings back to the typical range of around 200,000. If the data meets expectations, it could indicate a tight labor market, thereby strengthening the US dollar.

The US dollar has weakened against a range of global currencies prior to Powell's testimony and the release of the jobs report. The DXY is currently trading lower, around 104.23. However, if Powell's tone becomes more hawkish, it may strengthen the dollar and increase expectations for the US interest rate movement.

GBP/USD Intraday Technical Levels

Support      Resistance

1.1997         1.2052

1.1967         1.2079

1.1941         1.2108

Pivot Point: 1.2023

GBP/USD – Technical Outlook

From a technical perspective, the GBP/USD pair has found support at the 1.2015 level, and a bullish rebound may occur if candles close above this level.

The pair may face immediate resistance at the 1.2045 level, driven by a double-top pattern that has persisted in the past.

A break above the 1.2145 level may lead to further upward movement in the GBP/USD price.

Daily Price Outlook

The EUR/USD pair is currently trading at 1.0644. It closed the previous week on a bullish note, providing a positive outlook for traders who are bullish on the pair. Last week, there were positive inflation indicators in the Eurozone, including the CPI and the Harmonized Index of Consumer Prices (HICP), which supported the hawkish stance of the European Central Bank (ECB).

However, the Producer Price Index (PPI) for January showed a drop of -2.8%, which was a concern for the ECB's hawkish attitude as it was predicted to decline by only 0.3%.

On Friday, Botjan Vasle, a European Central Bank's (ECB) Governing Council member, expressed his belief that the 0.5 percentage point hike planned for the March meeting will not be the final one. Similarly, Madis Muller, another ECB Governing Council member, also suggested that there may be further interest rate increases in March. However, ECB Vice President Luis de Guindos stated that future interest rate decisions depend on the data.

As a result of the hawkish statements from ECB officials, the Euro has seen a rise in market sentiment regarding rate increases. Additionally, traders are currently awaiting the Eurozone Retail Sales report for February, which may limit the rapid movements of the EUR/USD pair.

US Economic Concerns Affect EURUSD Pair Trading

The US data released last week has increased uncertainty about the hawkish Federal Reserve's (Fed) concerns. The US ISM Services PMI for February was 55.1, below market expectations of 55.2. The US Durable Goods Orders for January fell earlier in the week, and the CB Consumer Confidence showed negative results.

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, has raised concerns about the Fed's policy reversal and speculated that the bank might be able to halt the tightening cycle by mid-to-late summer. However, the US Federal Reserve's semi-annual Monetary Policy Report explicitly stated that raising the Fed funds rate goal is necessary. The Fed is committed to getting inflation back to 2%.

Despite the US monetary policy report's emphasis on continuing rate hikes, the US Dollar Index (DXY) is currently trading lower at 104.53, indicating little market excitement.

Market analysts predict that the Federal Reserve's target rate could peak in the coming months before the bank either pauses or adjusts its hawkish stance in response to mounting economic pressures.

Today, traders eagerly anticipate the release of the US Factory Orders report for January, while the focus for the week remains on the upcoming release of US nonfarm payroll data for February and Fed Chief Jerome Powell's testimony scheduled for Tuesday.

EUR/USD Intraday Technical Levels

Support      Resistance

1.0618         1.0633

1.0609         1.0639

1.0603         1.0648

Pivot Point: 1.0624

EUR/USD – Technical Outlook

The EUR/USD pair is currently testing the key resistance level of 1.0650 after returning to positive trading. This development warrants caution in upcoming trades, as the price must remain below this level to maintain the bearish trend scenario for the near future.

The Stochastic indicator is losing its positive momentum, indicating overbought signals that may help push the price downwards toward our primary target of 1.0515. We maintain a bearish outlook, with a breach of 1.0650 halting the negative scenario and potentially leading to additional gains up to the next target of 1.0745.

Daily Price Outlook

The S&P500 (SPX) is currently trading at $4,045.64, representing an increase of 1.61% in the past 24 hours. The surge in the S&P 500 was due to the decrease in US Treasury rates and investors' acceptance of the increasing possibility that the Federal Reserve will maintain its tight monetary policy until the end of the year.

Fed rate hikes speculations

The previous week's US statistics sparked concerns about the hawkish stance of the Federal Reserve (Fed). However, the Fed's semi-annual Monetary Policy Report released on Friday stated explicitly that the Fed funds rate target must continue to increase, with a commitment to bringing inflation back to 2%.

Investors will be watching the US employment data for February on Friday and Jerome Powell's testimony before Congress for any updates on the direction of interest rates.

Powell is scheduled to speak before Congress and provide the central bank's semi-annual report on monetary policy, speaking before the Senate on Tuesday and the House of Representatives on Wednesday.

Market participants will closely watch his comments for indications of whether a higher rate rise is being considered this month after recent US statistics indicated continuing inflation.

Traders expect the Fed to raise interest rates by another 25 basis points this month, with market pricing now indicating a higher probability of a rise than in the past. The dollar held steady on Monday at around 104.43 after facing severe losses the previous week. The US 10-Year Bond Yield fell by 0.68% to 3.936.

Corporate earning

Due to high inflation and the Federal Reserve's interest rate hikes, corporate America has experienced some sharp and disappointing earnings results. Almost 99% of S&P 500 companies have already released their Q4 earnings, and the results have been particularly disappointing for the tech sector.

IT companies had a dismal performance in the last quarter, with Apple reporting an unusual earnings miss, while Intel and Alphabet, the parent company of Google, underperformed forecasted earnings.

However, not all was negative, as energy firms generated record profits for another quarter, with Chevron, ConocoPhillips, Exxon, and Shell recording their most profitable years ever. Tesla also announced record revenue growth and exceeded profit expectations. Target and Walmart also outperformed forecasts as US consumers continued to spend.

On average, S&P 500 index business earnings last quarter were only slightly above analyst expectations by around 1.3%.

S&P500 Intraday Technical Levels

Support      Resistance

3943            4005

3904            4029

3880            4068

Pivot Point: 3967

S&P500 – Technical Outlook

From a technical perspective, the S&P 500 (SPX) has rebounded from the support zone at the $3,930 level. The appearance of the "three white soldiers" pattern in the 4-hour timeframe increases the possibility of a bullish rebound.

On the upside, the SPX's immediate resistance level is at $4,095, supported by a 61.8% Fibonacci correction level. A bullish breakout of the $4,035 level may lead to further gains toward the $4,200 mark.

However, in the event of a breakdown below the support level of $3,930, the SPX may drop toward the next support level at $3,880.

Daily Price Outlook

The BTC/USD is trading at $22,344, a 0.49% decrease over the past 24 hours. Last week, Silvergate made headlines for delaying its annual 10-K financial report submission, which raised concerns about potential bankruptcy. A potential failure of the cryptocurrency bank could have negative repercussions for the rest of the sector.

Silvergate announced on March 3rd that it had made a "risk-based decision" to halt its cryptocurrency payments network, the Silvergate Exchange Network (SEN), just two days after the digital asset-focused bank expressed doubts about its viability. However, all other deposit-related services are still functioning normally.

Most of Silvergate's cryptocurrency customers, including Coinbase, Paxos, Galaxy Digital, and Crypto.com, immediately cut ties with the bank during the turmoil.

Following Silvergate's liquidity issues and other cryptocurrency-related problems, the market leader in cryptocurrencies, BTC/USD, experienced a sharp decline.

Upcoming Interest Rate Hikes by the US Federal Reserve

The US Federal Reserve's semi-annual Monetary Policy Report, which was released last Friday, stated that the Fed funds rate target must continue to rise in order to get inflation back to 2%. However, despite the report, the US Dollar Index (DXY) is now trading lower at 104.48.

Investors are eagerly anticipating the US employment figures for February, which will be released on Friday, and Jerome Powell's speech before Congress on Tuesday, for any hints on the future path of interest rates.

Market players will pay close attention to Powell's remarks to determine whether he intends to raise rates this month, following recent strong inflation figures. Traders are now expecting the Fed to raise interest rates by 25 basis points this month.

In addition, when interest rates increase, crypto values tend to decline due to the spillover effect. As a result, concerns over more rate hikes are putting pressure on BTC/USD.

Santiment Spots Strangely Negative Sentiment in the Cryptocurrency Market

The market intelligence platform Santiment has been analyzing social analytics and on-chain data to provide insights into the cryptocurrency market. According to a tweet by Santiment on March 5, there has been a continuously strong negative sentiment against cryptocurrencies. It is difficult to pinpoint the primary cause of one of the highest levels of fear, uncertainty, and doubt (FUD) ever seen by Santiment.

Santiment's social research indicates that most of the negative sentiment surrounding the cryptocurrency industry came from Twitter. The amount of unexpectedly aggressively negative tweets on the cryptocurrency market is unusually high. The hashtag #cryptocrash was also a popular off-and-on trending hashtag on the network before the decline in BTC/USD.

Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

22221          22646

22010          22860

21796          23071

Pivot Point: 22435

BTC/USD – Technical Outlook

At the moment, Bitcoin is being traded at $22,360 with a trading volume of $12.8 billion over the past 24 hours, marking a decrease of 0.50%. Bitcoin is currently ranked at the top of the CoinMarketCap rankings with a live market cap of $431 billion.

Technical analysis suggests that there is a possibility of the BTC/USD pair breaching the symmetrical triangle pattern at the $23,250 level, which may expose the BTC price to the $22,046 support zone. If BTC breaks down further below this support zone, it could drop to $21,450.

A bearish engulfing candlestick pattern indicates a significant selling bias in the BTC/USD pair. However, if the candles manage to close above this level, there is potential for a bullish bounce-off towards the $22,800 mark or even higher, with a possible target of $23,750.

Daily Price Outlook

The AUD/USD pair is trading at $0.6743, representing an increase of 0.21% in the past 24 hours. Traders are closely analyzing the comments made by Federal Reserve officials while also waiting for China's upcoming legislative meeting to gauge the level of economic support that could be expected. Despite these factors, the Australian dollar has remained steady.

Chinese Economy and Its Impact on AUD/USD

The Chinese economy is making significant progress toward economic recovery after lifting Covid restrictions. The government and the People's Bank of China (PBoC) are committed to boosting domestic demand by implementing further stimulus and reform initiatives.

In addition, according to a report by S&P Global released on Friday, China's services sector experienced growth in February due to increasing demand. The report indicates that the Caixin Services PMI rose from 52.9 in January to 55.0 in February, showing a consecutive month-over-month improvement in activity.

It is worth noting that Australia is China's top trading partner, and an increase in China's service PMI benefits the Australian Dollar.

All eyes are now on China's annual parliamentary session, which is set to take place on Sunday. Beijing will announce new policy measures to support economic growth and targets.

RBA's Interest Rate Guidance

Despite a recent decline in Australia's Consumer Price Index (CPI), the Reserve Bank of Australia (RBA) remains steadfast in its hawkish outlook. RBA policymakers have not indicated that Australian inflation has peaked so the central bank will maintain a hawkish position.

A recent Reuters survey on the RBA's interest rate guidance reveals that the central bank is expected to increase its interest rate by 25 basis points (bps) to 3.60% on Tuesday, March 7.

The survey predicts that the RBA will increase its interest rate again in Q2 before pausing until next year, resulting in a higher peak rate than anticipated. Further rate hikes may support the Australian Dollar (AUD).

Dollar Under Pressure

On Thursday, Raphael Bostic, the president of the Atlanta Federal Bank, suggested that the current tightening cycle by the Federal Reserve could end by mid-summer. While he supports a 25 basis point rate hike in March, he is open to reconsidering a more hawkish outlook if inflation and labor market figures show improvement.

Bostic's comments have pressured the US Dollar Index (DXY), currently trading at 104.89. Later today, the US Institute of Supply Management (ISM) will release data on the Services PMI (Feb), potentially supporting the US Dollar.

AUD/USD Intraday Technical Levels

Support      Resistance

0.6700         0.6762

0.6672         0.6796

0.6639         0.6824

Pivot Point: 0.6734

AUD/USD – Technical Outlook

Yesterday, the AUDUSD pair traded negatively and approached the 0.6700 level. There is some bullish bias in the market due to stochastic positivity. The following support level is at 0.6665, and the pair must remain below 0.6780 to continue the projected downtrend.

The EMA50 is still supporting the bearish wave within the negative channel. Today, the trading range is expected to be between the support level of 0.6670 and the resistance level of 0.6780.

Daily Price Outlook

The USD/JPY pair is currently trading at $136.66. Raphael Bostic, the president of the Atlanta Federal Reserve, made some cautious comments that appear to have briefly halted the pair's upward momentum.

Jobless Claims Report and Bostic's Comments Affect US Economy and USD/JPY

On Thursday, the jobless claims report indicated a further decline in the number of Americans filing new unemployment claims, reaching 190K instead of the expected 196K. This suggests a continuing improvement in the labor market and may reduce the likelihood of the Fed raising interest rates.

Earlier in the day, the US Dollar was gaining strength. Still, it changed direction in the afternoon when Atlanta Federal Bank President Raphael Bostic said the tightening cycle could end mid-to late-summer. Bostic prefers a rate increase of 25 basis points in March, but he left the possibility of a more hawkish rate outlook if inflation and labor market statistics improve.

As a result, the US Dollar Index (DXY) is now under pressure and trading at 104.89. Later today, the US Institute of Supply Management (ISM) will release the Services PMI (Feb) data, which could significantly impact the US Dollar's movement.

Tokyo Inflation Decreases in February: First Drop in Over a Year

The inflation rate in Tokyo has dropped for the first time in over a year, but this masks a stronger pricing trend that will likely influence the policy decisions of Bank of Japan Governor Nominee Kazuo Ueda. Despite the decrease in February's annual inflation rate from 4.4% to 3.4%, and the core inflation rate from 4.3% to 3.3%, it is unlikely to pressure the Bank of Japan to reconsider its policy outlook.

The recent drop in Tokyo's inflation rate, a leading indicator for the country, suggests that the peak of price growth may have passed in January. However, the new Bank of Japan (BoJ) board supports the current monetary policy. While Kazuo Ueda, the new BoJ Governor nominee, may consider phasing out Yield Curve Control, it could lead to increased optimism for the Japanese Yen.

USD/JPY Intraday Technical Levels

Support      Resistance

136.15         137.25

135.53         137.73

135.05         138.34

Pivot Points:136.63

USD/JPY  – Technical Outlook

Due to stochastic negativity, the USD/JPY pair experienced a temporary decline after reaching the 137.00 level. However, positive signals emerge, indicating a potential resumption of the bullish trend within the upward channel shown on the chart. The EMA50 currently supports the projected bullish wave, which is dependent on the price of above 135.40.

A break below this level could end the positive scenario and push the price down to test the 133.30 regions. The trading range for today is expected to be between 135.60 support and 137.30 resistance.

Daily Price Outlook

The Nasdaq 100 (NDX) trades at $12,044.87, showing a 0.89% increase within the last 24 hours. US stocks recovered from their initial decline as Raphael Bostic, the president of the Atlanta Fed, expressed his support for the stock market gains.

Bostic's Hawkish Stance Sparks Recovery Rally in US Stocks

At the start of the day, the NASDAQ faced some pressure. Nevertheless, the market recovered, and stocks soared as traders tried to counter worries about increasing interest rates. Raphael Bostic, the president of the Atlanta Federal Reserve, stated on Thursday that he strongly supports additional 25 basis point rate hikes, which resulted in the market reversal.

He also mentioned that the central bank could halt the current tightening cycle by the middle of summer. This was enough to cause market participants to overlook the rising bond yields.

The yield on the US 10-Year Treasury rose to 1.58%. At the same time, the US Dollar Index (DXY) is trading around 91.85. Following Bostic's remarks, the market is now pricing a greater chance of a lower Fed Funds rate for June 2023.

Corporate Earnings Drive NASDAQ Rebound Amid Interest Rate Concerns

Corporate earnings for the day saw a surge in Salesforce and Okta stock prices due to solid results, while Silvergate Capital and Tesla shares took a hit. Salesforce's shares rose after exceeding Wall Street earnings forecasts and publishing a better-than-expected projection on Wednesday. Similarly, Okta's shares also increased after the company reported better-than-expected results for the latest quarter and a positive outlook for the upcoming one. However, the shares of Silvergate Capital and Tesla fell.

Meanwhile, Silvergate Capital's stock plummeted over 57% when the company missed the deadline for filing its 10-K annual report. As for Tesla, shares also fell by 5.8% after the company didn't provide any details about the highly anticipated next-generation vehicles on investor day. Tesla is a popular choice among retail investors.

NASDAQ Intraday Technical Levels

Support      Resistance

11879          12026

11819          12114

11732          12173

Pivot Points:11966

NASDAQ – Technical Outlook

Technically, the NASDAQ is currently confined within a downward channel, with a narrow trading range of $11,800 to $12,050. Support for the NASDAQ is being observed at the $11,940 level, and a close below this level could lead to a potential drop to the next support level at around $11,440.

Moreover, in the 4-hour timeframe, the Nasdaq has broken through an upward channel, further intensifying the bearish sentiment in the market. On the upside, the NASDAQ may face immediate resistance at the $12,250 level.

Daily Price Outlook

The price of gold (XAU/USD) has fallen to $1,835.46 after a three-day recovery from a two-month low due to rising Treasury bond rates. As a result, traders of the precious metal struggled to find compelling reasons to support the recent uptick.

China's PMI Signals Economic Recovery, Gold Prices Respond

Recent PMI data shows that China's manufacturing sector expanded in February, with the National Bureau of Statistics reporting that the manufacturing PMI increased to 52.6, the highest figure since April 2012. This indicates a positive economic recovery in the leading industrial country and one of the main buyers of gold. The stronger-than-expected Chinese PMIs are supporting a risk-on sentiment.

In addition, the US dollar weakened due to stronger commodity currencies, which were boosted by China's positive manufacturing activity data, giving gold buyers an advantage. However, there are concerns about the US Federal Reserve's hawkish stance and worries about further inflationary pressures that could limit the price of XAU/USD.

Fed Officials Signal Possible Interest Rate Hikes in Response to Inflationary Pressures

Federal Reserve (Fed) officials have recently stated that the current monetary policy may not be enough to control high inflation in the near future, and further rate hikes may be necessary to address the issue. In addition, the manufacturing PMI for February was released at 47.7%, slightly up by 0.3% from the January reading of 47.4%.

This marks the third consecutive month of decline for the US economy after 30 months of growth. The release resulted in a considerable sell-off of both risky and safe assets. However, the prices paid index increased by more than experts had anticipated.

The DXY is currently trading at 104.59, indicating a decline in investor risk appetite. Additionally, hawkish comments from Federal Reserve officials regarding potential rate hikes, coupled with signs of rising inflationary pressures, caused the 10-year Treasury yield to climb to 4% and the expected final rate of the Fed to increase to 5.50%.

The rise in US Treasury bond rates is a reflection of the market's worries about economic contraction and inflation. This development reinforces expectations of a US Dollar rebound and a drop in the XAU/USD price.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1825            1846

1813            1856

1803            1868

Pivot Point: 1835

Gold (XAU/USD) – Technical Outlook

The price of gold closed yesterday with a definite positive trend, closing above $1828.70, which is considered a signal to begin an intraday bullish wave. However, we can see that the price started the day badly, placing pressure on the stated level, which now serves as a critical support line. The price is being influenced by stochastic negativity, which is now visible.

As a result, the price is caught between technical variables that make us prefer to stay away until we have a better indication of the next trend. Breaking $1828.70 will reignite the correcting bearish scenario, pushing the price towards $1788.20 as the next key objective. Consolidating above it and exceeding $1840.00, on the other hand, will lead to additional gains and a near-term visit to $1878.80.

Today's trading range will likely be between $1815.00 support and $1850.00 resistance.

Daily Price Outlook

The S&P500 is currently trading at $3,951.04, representing a 0.47% decrease in the past 24 hours. The decline in the S&P 500 was driven by manufacturing data indicating that inflation may remain persistently high, along with an increase in Treasury rates and hawkish remarks from Federal Reserve policymakers, which reinforced a stringent policy stance.

Federal Reserve Officials Suggest Aggressive Hikes in Interest Rates

The latest PMI data from S&P Global indicates a grim outlook for US manufacturing companies. The manufacturing PMI for February came in at 47.7%, which was 0.3% points higher than January's figure of 47.4%.

Despite the data showing the slowest rate of decline in three months, the sector's health has deteriorated as producers of goods struggle.

The ISM survey showed that US manufacturing contracted in February, while raw material costs increased, causing the yield on 10-year notes to rise above 4% for the first time since November. The Dollar index also gained momentum, trading at 104.59.

Investors remain focused on the Federal Reserve's interest rate trajectory. On Wednesday, Fed officials made statements supporting the idea that the most effective way to combat inflation is through aggressive interest rate hikes.

Moreover, the PMI data suggests that inflationary pressures have resurfaced, indicating that the Fed should not hastily conclude its tightening policy cycle.

How Corporate Earnings Reports Affected the SPX?

In the stock market, Lowe's Companies saw a 6% drop in its share price after it reported fourth-quarter revenue that fell short of Wall Street's expectations. The company also provided annual sales guidance that did not meet the projected figures.

Tesla also garnered attention as it began its investor day, during which the EV maker was expected to present its Master Plan 3 and provide insights into its long-term development strategy.

Snowflake's share price fell 7.3% after the company announced its Q4 earnings of $0.14 per share, falling short of the projected $0.05 on revenue of $589 million compared to the anticipated $576.22 million.

On the other hand, Okta's share price rose 13.7% after the company reported its Q4 earnings per share of $0.30, surpassing the estimated $0.09, and revenue of $510 million compared to the projected $489.79 million.

S&P500 Intraday Technical Levels

Support      Resistance

3978.24       4037.35

3944.16       4062.38

3919.13       4096.46

Pivot Point: 4003.27

S&P500 – Technical Outlook

Technically, the S&P 500 (SPX) is experiencing a bearish trend, having dropped to $3,950 after breaking an upward channel at $4,100. The SPX's current support level is $3,950, supported by a double-bottom pattern. If this support level is broken, the S&P 500 may continue to fall, possibly to $3,885. On the other hand, the S&P 500's resistance level is at $4,000 or $4,075.

Later today, market participants will pay attention to FOMC Member Waller's speech at 9:00 pm.

Daily Price Outlook

The EUR/USD is currently trading at $1.0646. China's release of the Caixin Manufacturing PMI has quelled concerns about a global recession, causing the risk-off sentiment to subside as expectations of an economic recovery rise. As a result, the US dollar has weakened in response to China's robust manufacturing sector. This has led to an increase in the value of the euro.

ECB Plans to Raise Interest Rates in Response to Higher Inflation

Regarding the Eurozone, four out of eight countries recorded manufacturing PMIs in the expansion range. However, the most recent report data revealed that manufacturing output throughout the Eurozone stabilized midway through the first quarter, ending an eight-month trend of declining output. The manufacturing PMI for the Eurozone decreased from 48.8 to 48.5, remaining the same as the preliminary figure of 48.5.

In the meantime, the annual Harmonised Index of Consumer Prices (HICP), which is the European Central Bank's (ECB) preferred measure of inflation, increased to 9.3% in February from 9.2% in January, surpassing experts' expectations of 9%. The higher-than-anticipated HICP indicates that the ECB may face difficulties in maintaining price stability.

Christine Lagarde, the President of the ECB, has already announced that the central bank plans to raise interest rates by 50 basis points in its March monetary policy.

Inflation in Germany exceeded market expectations, rising above the anticipated 8.5%. Market participants are now awaiting the release of European inflation data, which is expected later in the day. Even if the data exceeds the consensus forecast, little response is expected since most countries have reported their results. The European Central Bank (ECB) will also publish the minutes of its February meeting, which could potentially provide support for the euro.

Federal Reserve Signals Further Interest Rate Hikes to Combat Inflation

Federal Reserve (Fed) policymakers have maintained a hawkish stance, asserting that the current monetary policy is too weak and restrictive to curb inflation effectively. This suggests that additional rate hikes will be necessary to address inflationary pressures.

Additionally, the manufacturing PMI figure for February was 47.7%, which was 0.3% points higher than January's reading of 47.4%. Despite a 30-month expansion, this marks the economy's third consecutive monthly decline.

Based on the US ISM Manufacturing PMI range, inflationary pressures have resurfaced, indicating that the Fed should not rush to conclude its phase of policy tightening. As a result, the DXY is currently trading at 104.55, suggesting a decline in investor risk appetite due to expectations of interest rates.

EUR/USD Intraday Technical Levels

Support      Resistance

1.0590         1.0717

1.0513         1.0769

1.0462         1.0845

Pivot Point: 1.0641

EUR/USD – Technical Outlook

The EUR/USD is currently finding support at the $1.0645 level while facing resistance at the $1.0675 mark. On the 4-hour timeframe, the EUR/USD has formed an upward channel, indicating a possible uptrend for the EUR.

If the pair breaks above the $1.0680 mark, it could move toward the $1.0705 level, with further bullish momentum potentially leading to a breakout above $1.0735.

Leading technical indicators, such as the RSI and MACD, are currently holding above 50 and 0, respectively, indicating a bullish bias in the market.

Alternatively, if the pair breaks below the $1.0645 level, it could move toward the $1.0620 or $1.0580 levels, with further bearish momentum likely.