EUROPEAN INFLATION: Slight Lowering Of March EZ HICP Forecasts

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• On the commodity front, despite Tuesday’s pullback, a bull cycle in Gold remains in play. Recent fresh cycle highs once again confirm a resumption of the uptrend and maintain the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode position too, highlighting a dominant uptrend and positive market sentiment. Sights are on the $2962.2, a 2.00 projection of the Nov 14 - Dec 12 - 19 price swing. The first key support to watch is $2879.0, the 20-day EMA.
• In the oil space, a bearish theme in WTI futures remains intact and Tuesday’s sell-off reinforces current conditions. The move lower has resulted in a clear breach of support at $70.20, the Feb 6 low. This confirms a resumption of the downtrend that started Jan 15 and paves the way for an extension towards $67.75, the Dec 20 ‘24 low. Key short-term resistance has been defined at $74.06, Feb 3 high. Initial resistance is at $71.49, the 50-day EMA.

• European Indices remain underpinned, led by better earnings today, given some of the attention on Tech stocks this Week, tonight will see major earning from US NVIDIA, expected after Markets around 21.20GMT/16.20ET.
• We  Flagged at the start of 2025 that the Bank Index (SX7E) was the most interesting chart at the start of the Year.
• This is making another 14yr High, that's a 33.2% gain from the December low, or 29.6% this Year.
• Next upside resistance comes at 197.88, the February 2011 high, and the highest printed level since August 2010.

(Chart source: MNI/Bloomberg).