The S&P 500, the Dow Jones, and the Nasdaq 100 advanced sharply in the day. (Pivot Orderbook analysis)

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• The S&P 500, the Dow Jones, and the Nasdaq 100 advanced sharply in the day.
• US Treasury bond yields climbed ahead of the FOMC’s meeting.
• Investors focus shifted toward the Federal Reserve’s monetary policy decision.

The pair currently trades last at 4003.96.

The previous day high was 3954.98 while the previous day low was 3865.6. The daily 38.2% Fib levels comes at 3920.84, expected to provide support. Similarly, the daily 61.8% fib level is at 3899.74, expected to provide support.

Wall Street finished the day with gains, spurred by optimism in the financial markets, which triggered gains in the S&P 500, the Dow Jones, and the heavy-tech Nasdaq Composite. As the New York session ended, the S&P 500 gained 1.3%, 4,002.87, while the Dow Jones climbed 0.98%, 32,560.60. The Nasdaq Composite led the pack, up 1.58%, at 11,860.11.

Investors had shrugged off the banking system’s woes. On Tuesday, the Secretary of Treasury Janet Yellen stated that if regulators perceive a potential run on the banking system, the federal government could intervene to safeguard depositors at more banks. Data-wise, Existing Home Sales in the United States (US) rose above the prior’s month figures as lower mortgages boosted sales. Existing Home Sales in February rose by 14.5% MoM, crushing the 5% consensus, and ended a 12-month run of declines in sales.

Aside from this, US Treasury bond yields jumped, with 2s and 10s gaining 18 and 12 basis points, respectively, ahead of tomorrow’s Federal Reserve’s decision. The US 2-year Treasury bond yield is 4.179%, while the 10-year rate is 3.607%.

Traders focus shifted toward the US Federal Reserve monetary policy decision, with investors expecting a 25 bps rate hike by the Fed. However, tomorrow’s spotlight would be Fed Chair Jerome Powell’s press conference, which would be scrutinized by investors expecting Powell to deliver any forward guidance.

Sector-wise, Energy, Consumer Discretionary, and Financials led the pack, each up 3.45%, 2.71%, and 2.54%. Contrarily, Utilities, Real Estate, and Consumer Staples finished with losses of 2.05%, 0.66%, and 0.12%m respectively.

In the FX space, the US Dollar Index (DXY), a measure that tracks the buck’s value against a basket of six currencies, lost 0.09%, down at 103.214, after hitting a YTD low of 103.000.

The US calendar will feature the Federal Reserve Open Market Committee (FOMC) monetary policy meeting, alongside the Fed Chairman Jerome Powell press conference, at around 18:00 and 18:30 GMT.

Technical Levels: Supports and Resistances

EURUSD currently trading at 4003.96 at the time of writing. Pair opened at 3952.78 and is trading with a change of 1.29 % .

The pair is trading above its 20 Daily moving average @ 3959.26, below its 50 Daily moving average @ 4014.62 , above its 100 Daily moving average @ 3961.08 and above its 200 Daily moving average @ 3929.84

The previous day high was 3954.98 while the previous day low was 3865.6. The daily 38.2% Fib levels comes at 3920.84, expected to provide support. Similarly, the daily 61.8% fib level is at 3899.74, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 3893.93, 3835.07, 3804.55
• Pivot resistance is noted at 3983.31, 4013.83, 4072.69

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