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Midday Update
Commodities rebounded from weekly lows as the diplomatic meeting failed to breakthrough. Investors focus on US GDP data and crude oil inventories while US Barkin will speak on the condition of the economy and inflation in the US during the New York session.
NATO allies remain skeptical of a Russian pullback from Kyiv as they seek signs of a retreat. Central bank members from ECB and FOMC members will be speaking later today. USDCHF dropped for the second day as the Dollar index slid ahead of important Job data.
During the European session on Wednesday, the USDCHF dropped -0.58% to 0.9250 near-term support. A break below that support may renew selling pressure towards 0.91500 while an upside movement needs to challenge the 0.93000 psychological resistance for a strong rebound.
Traders focus on US GDP data and Job data later in the New York session. NZDUSD extended gains by +0.55% as bulls approached 0.69800near-term resistance. A break above that near-term resistance opens room for bulls to reclaim the 0.7000 area.
The pair has immediate support at 0.69500which coincides with a 50-day moving average on the H4 chart. The EURJPY trimmed gains early European morning by -0.45% as the pair took a corrective pattern after a 4-week rally.
The Bullish momentum recedes as the Eurozone outlook falls to one year low as inflation fears soar below. The pair remains capped by the 137.567 near-term resistance and a break above that area may have bulls’ interest targeting a 7-year high at 141.00. European equities opened lower early in the European session.
The DAX index was down -1.17% trimming its Tuesday gains as bulls lost handles at14900.00 near-term resistance. A break below Tuesday’s low at 14570.00 may open room for a further downside movement to close a price action gap between the 14200and 13920.00 area.
The CAC40 dropped by -1.12% as bulls failed to challenge the6800.00 near-term resistance. A breach of that resistance could renew bullish participation towards 7000.00 psychological resistance.
The index is currently sitting at 6700 support turned resistance and a failure to hold above this support may cause a further drop to 6500 near-term support. FTSE was slightly down -0.11% as bulls shy away from the 7569near-term high.
An area to watch out for if the price breaches this immediate resistance is the 7700 near-term resistance which coincides with the December 2019 highs.US equities markets closed higher as the benchmark US 10-year yield tanks on Tuesday.
The Nasdaq closed up +1.68% closing slightly above the 1500 0psychological barrier. A breach of the 2-month high may cause a corrective pattern to close the price action gap between the 14993 and 15093 areas.
The DJI index rose +0.97% although upside gains are limited due to the uncertain conflict between Russia and Ukraine. In commodities, Oil climbed up after diplomatic talks failed to bring a concise cease-fire agreement. USWTI crude oil futures were up +0.78%to 107.22 after trading slightly below $100/barrel on Tuesday.
Investors are focused on the EIA oil report to be released later today and the OPEC+ meeting scheduled on Thursday.
