NVIDIA’s earnings report front and center

NVIDIA’s earnings report highlighted

Today’s market highlight is expected to be NVIDIA’s earnings report in the after-market hours.

The company is considered to be at the core of the market’s AI expectations and the EPS and revenue figures are expected to be closely watched yet market focus is also to be placed on the company’s forward guidance about revenue and AI investment plans.  Should we see the actual figures surpassing market expectations and the release be accompanied by a confident forward guidance, we may see the share’s price getting substantial support. Yet the report may have ripple effects in the markets and could potentially sway the whole of the US Tech sector and boost the market’s confidence.  

USD sends mixed signals in the FX market

The USD was on the rise yesterday yet relented any gains made in today’s Asian session. Elsewhere in the FX market, we note the weakening of JPY, as the Japanese Government selected two academics for BoJ’s board, which the market seems to perceive as leaning more on the dovish side, displaying tolerance for inflation in relation to growth. Also, we highlight the strengthening of the Aussie as Australia’s CPI rates for January refused to slow down as expected.

Oil prices maintain a wait-and-see position

Oil prices seem to have edged lower, yet remained at relatively high levels. Market worries, mentioned in yesterday’s report as well, for a possible US-Iranian conflict remain, despite US President Trump expressing his preference for a diplomatic solution in his State of the Union speech yesterday. We also note the release of the EIA crude oil inventories figure after API reported yesterday a substantial increase of US oil inventories by 11.4 million barrels, implying a slack in the US oil market.

Other highlights for today

Today we get Germany’s GDP rate for Q4 and GfK consumer sentiment for March, Euro Zone’s final HICP rate for January. On a monetary level we note that Richmond Fed President Barkin, Kansas Fed President Schmid, St. Louis Fed President Musalem and RBA Governor Michelle Bullock are scheduled to speak. In tomorrow’s Asian session, we get Australia’s capital expenditure for Q4 and Japan’s leading indicator for December while BoJ board member Takata speaks.

Charts to keep an eye out

USD/JPY was on the rise yesterday and in today’s Asian session, stabilised in the midst of the 157.60 (R1) resistance line and the 154.30 (S1) support level. The RSI indicator has risen slightly above the reading of 50 implying a scrapping of the bearish market sentiment for the pair. For the time being we intend to maintain a bullish outlook for the pair as long as the upward trendline guiding the pair’s price action remains intact Should the bulls remain in charge as expected, we may see the pair aiming for the 157.60 (R1) resistance line. Should the bears take over, we may see the pair reversing direction, breaking the 154.30 (S1) support line and starting to aim for the 152.10 (S2) support level.

NVIDIA’s share price rose slightly yesterday aiming for the 195.80 (R1) resistance line. Yet the share’s price action is confined between the 195.80 (R1) and the 170.00 (S1) levels, since mid-November 25, allowing us to maintain a bias for the sideways motion between the prementioned levels to continue. For a bullish outlook to be adopted, the share’s price action has to break the 195.80 (R1) resistance line and start aiming for the 212.00 (R2) resistance level. For a bearish outlook to emerge, which we consider as remote currently, we require NVIDIA’s share price to break the 170.00 (S1) support line and start aiming for the 151.25 (S2) support level.

USD/JPY daily chart

• Support: 154.30 (S1), 152.10 (S2), 149.40 (S3).
• Resistance: 157.50 (R1), 159.45 (R2), 161.90 (R3). 

NVIDIA daily chart

• Support: 170.00 (S1), 151.25 (S2), 130.00 (S3).
• Resistance: 195.80 (R1), 212.00 (R2), 230.00 (R3).