The S&P 500, the Nasdaq 100, and the Dow Jones collapsed as the banking system crisis deepened. (Pivot Orderbook analysis)

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• The S&P 500, the Nasdaq 100, and the Dow Jones collapsed as the banking system crisis deepened.
• The US Producer Price Index cooled, while Retail Sales dropped after an outstanding January report.
• Investors expect the Federal Reserve to keep the Federal Funds Rate unchanged at the next meeting.

The pair currently trades last at 3844.57.

The previous day high was 3934.51 while the previous day low was 3858.31. The daily 38.2% Fib levels comes at 3905.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 3887.42, expected to provide resistance.

Wall Street collapsed as the banking crisis deepened, with Credit Suisse’s (CS) stock plunged 24% in the day amidst comments from its largest shareholder to not invest in the bank due to “regulatory and statutory reasons.” That has triggered a collapse in CS stock, while its Credit Default Swaps (CDS) are reaching levels last seen since the Global Financial Crisis (GFC).

Therefore, the S&P 500 is dropping 1.46%, at 3,862.14. Following suit is the heavy-tech Nasdaq 100, falling 0.76% at 11,342.55, while the Dow Jones is losing 1.74%, at 31,598.13.

Sentiment remains sour amidst the Credit Suisse panic sale. Bank’s shares across the board registered losses, while more than 80% of the S&P 500 stocks listed fell. Aside from this, the United States (US) economic calendar revealed the Retail Sales and Producer Price Index (PPI) for February. Retail Sales came lower than the expected plunge of 0.3% MoM, dropped 0.4%, in part blamed on the astonishing January report of 3.2%

The US Producer Price Index (PPI) dropped 0.1% MoM, the US Bureau of Labor Statistics reported today. Core PPI, which excludes volatile items like food and energy, cooled down from 0.4% estimates to 0%.

In the meantime, expectations for a 25 bps rate hike by the Federal Reserve (Fed) had waned. The CME FedWatch Tool odds for a 25 bps hike lie at 37%, with investors estimating no change to the Federal Funds rate (FFR) at next week’s meeting.

Sector-wise, Utilities and Communications Services are the two leaders of the pack, up 1.16% and 0.25%. The laggards are Energy and Materials, each losing 6.18% and 4.42%, respectively.

Meanwhile, the greenback is recovering after three days of consecutive losses, as the US Dollar Index shows, advancing 1.21% at 104.937. US Treasury bond yields continued to plunge across the curve, with 2s falling 43 bps, at 3.823%, while the 10-year dropping 28 bps at 3.410%.

The US economic calendar will feature February Housing Starts, Building Permits, and Initial Jobless Claims.

Technical Levels: Supports and Resistances

EURUSD currently trading at 3844.57 at the time of writing. Pair opened at 3919.99 and is trading with a change of -1.92 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 3992.54, 50 SMA 4009.15, 100 SMA @ 3958.0 and 200 SMA @ 3930.14.

The previous day high was 3934.51 while the previous day low was 3858.31. The daily 38.2% Fib levels comes at 3905.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 3887.42, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 3874.03, 3828.07, 3797.83
• Pivot resistance is noted at 3950.23, 3980.47, 4026.43

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