Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Pending Home Sales for February are predicted to drop 2.3% monthly. Forex traders can compare this to US Pending Home Sales for January, which surged 8.1% monthly.
US Crude Oil Inventories Change for the week ending March 24th are predicted at 0.092M. Traders can compare this to US Crude Oil Inventories Change for the week ending March 17th, reported at 1.117M. US Gasoline Inventories Change for the week ending March 24th are predicted at -1.617M, and US Distillate Stocks Change at -1.455M. Traders can compare this to US Gasoline Inventories Change for the week ending March 17th, reported at -3.313M, and US Distillate Stocks Change at -6.400M. Weekly Refinery Utilization Rates for the week ending March 24th are predicted to increase by 0.6% week-over-week. Forex traders can compare this to Weekly Refinery Utilization Rates for the week ending March 17th, which rose by 0.4% week-over-week.
Financial markets remain nervous as bearish catalysts continue to dominate. Regional bank worries remain as the conditions that caused the second-biggest and third-biggest bank collapse in US history persist. Concerns over the fallout from the Credit Suisse collapse and rumors surrounding Deutsche Bank keep bearish pressures intact. Adding to worries is the US consumer, with record credit card debt and decreasing home values, lowering the phantom wealth effect. Inflation remains high, and the US Federal Reserve could increase rates further and maintain tight monetary policy into 2024 and beyond. Corporate earnings held up reasonably, but with the US consumer near a breaking point, the risks for 2023 remain to the downside for equity markets.
The forecast for the Dow Jones 30 remains bearish after this equity index bounced off the upper band of its horizontal support area. Short-term bearish pressures remain intact, with the Kijun-sen moving lower. A bearish crossover below the flat Tenkan-sen can add to downside momentum. Adding to the bearish outlook is the descending Ichimoku Kinko Hyo Cloud, which limits upside potential. Traders should additionally monitor the CCI after it completed a breakout from extreme oversold territory and has quickly moved into extreme overbought conditions. A breakdown below 100, especially with a lower high preceding it, could spark the next leg lower. Will bears maintain control over the Dow Jones 30 and force price action into its horizontal support area and fresh 2023 lows? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the Dow Jones 30 Index remain inside the or breakdown below the 32,290 to 32,770 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 35.510
- Take Profit Zone: 31.110 – 31.425
- Stop Loss Level: 32.965
Should price action for the Dow Jones 30 Index breakout above 32,770, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 32.965
- Take Profit Zone: 33.325 – 33.695
- Stop Loss Level: 32.770
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
