As the U.S. and North American trading session begins, broader indices are positive, and U.S. yields are rising, despite Oracle shares falling sharply in premarket trading. The drop comes after the company narrowly missed earnings expectations by a penny and reported slightly lower-than-expected revenue. Oracle’s quarterly profit rose 24% year-over-year to $3.15 billion ($1.10 per share), with adjusted earnings of $1.47 per share just below the $1.48 consensus. Revenue increased 8.6% to $14.06 billion, slightly under the $14.12 billion forecast. CEO Safra Catz emphasized record AI demand and projected the cloud infrastructure unit will surpass $25 billion in fiscal 2025. Despite the earnings miss, Oracle shares are up 83% this year.
In commodities, crude oil is trading lower, while gold continues its upward momentum with a 0.7% gain after a 1.01% rise yesterday. Bitcoin is marginally lower, down $176 at $97,282, following last week’s record high of $103,647 and a high close of $101,407 on Sunday.
On the economic front, revised Q3 U.S. unit labor costs are expected to show a 1.5% increase, down from the previously reported 1.9%, while productivity is forecast to remain unchanged at 2.2%. At 1 PM, the U.S. Treasury will auction $58 billion in 3-year notes, kicking off a series of auctions this week, including $39 billion in 10-year notes tomorrow and $22 billion in 30-year bonds on Thursday. Ahead of those auctions, key U.S. CPI data will be released at 8:30 AM tomorrow, with expectations for a 0.3% increase in both headline and core measures.
In early forex trading,
- the EUR/USD is moving lower, breaking below a cluster of moving averages, including the 100- and 200-hour MAs and the 100-bar MA on the 4-hour chart. Staying below these levels (1.05305–1.05508) reinforces sellers’ control in the short and medium term. Key downside targets include trendline support near 1.0504, followed by a swing area between 1.0448 and 1.0461.
- The USD/JPY rebounded after an earlier dip, reaching new highs for the week. The pair is testing and moving above the 38.2% retracement level at 151.736, with the 200-day MA at the same level serving as a key resistance point. The last test of this MA, on November 28, saw sellers regain control and push the pair lower.
- For the GBP/USD, the pair failed for a second consecutive day to hold above the 200-bar MA on the 4-hour chart (after a similar attempt on Friday). The price moved lower, testing the rising 100-hour MA at 1.27387, where buyers provided support. However, the rebound has been limited, with resistance at the 50% midpoint (1.2767). A break above the midpoint or below the 100-hour MA will likely dictate the next directional move, as buyers and sellers continue to battle within this range.
The video above, it kickstarts your trading day with the details of the technicals in play for those 3 major currency pairs.
This article was written by Greg Michalowski at www.forexlive.com.
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