Global markets showed a lot of volatility and closed with significant losses last month. The bearish sentiment is driven by the release of hotter-than-expected US inflation data and hawkish comments from Federal Reserve policymakers. The FED minutes also showed policymakers agreed rates would need to move higher in the near term.
Check the below technical analysis for levels of support and resistance of the important assets for this month.
King Dollar: DXY
Considering the strong rebound in February, the greenback slipped to near 104 on the first trading day of this month after the release of weaker-than-expected US business activity and consumer confidence. However, the king dollar strongly recovering back from the early losses. Therefore, the retreat in recent days in USD appears to be a consolidation rather than a reversal of last month's upside move. The index is expected to make a new 2023 high by next week if it breaks above 105.30 (the previous month's high). On the flip side, the key support remains below 104. In case it breaks below this level, it will head towards the next support level which is located near 103.40.
The currency pair started the new month on a bullish note but the bullish momentum appears to have run out of steam, as the price has struggled and failed to stay above 1.0700. This month, good support is expected at the 1.0530 area, with this zone having held last month while further down, demand is also expected around 1.0500, which will act as the next area of support. Losing this area and I'd expect further downward momentum to 1.0460/30 areas. On the flip side, the first immediate resistance level for the pair is the 1.0720 area, and then the stronger resistance is 1.0800, which is important to be stable above it for a continuing rise to 1.0900/30 levels.
The price of Bitcoin reversed from the highs after the crypto pair once again failed to break above and hold a $25,000 handle. For this month, $22,200 is a crucial support zone to watch. If the pair breaks below $22,200, the slump will quickly extend toward the $21,000 and $20,300 marks. On the flip side, the bullish breakout of 25,300 is likely to push the crypto pair into a new trading zone, which may offer further buying opportunities until $26,000 then $27,500.
Gold and Silver
Gold price got the market's favor by starting off this week, but demand for the metal receded after the hawkish comment from Atlanta Fed President Raphael Bostic. Bostic called for continued rate hikes to above 5% to make sure inflation does not pick up again. The scenario will turn more lively from the macroeconomic point of view starting next week, with the release of the February US NFP report. The technical scenario is absolutely bearish and attempts to exit the current bearish channel will not succeed without moving above the $1850 resistance so far, the bears are still determined to break the psychological support of $1800 in the coming days.
The technical outlook for both metals has recently weakened, leading to some selling pressure. Silver prices remain vulnerable to further losses if Fed's hawkish stance remains elevated. The metal is expected to fall further and test the key psychological support area of $20 if it breaks and closes below the $20.50 support area. On the upper side, silver is likely to find immediate resistance at $21.10 then a crucial one at $21.40. If the silver price rises above the $21.40 zone a fresh demand for the metal can be anticipated.
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