Nasdaq Deeply Seeking Decent Nvidia Earnings, AUDUSD, EURUSD Advance
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Thanks to a lack of headlines, US markets had a relatively quiet session overnight. US stocks and the US dollar were mixed, while gold and oil rallied, recouping some of Friday's losses. The S&P 500 futures closed 0.49% lower, the Nasdaq retreated by 1.0%, and the Dow Jones almost unchanged, finishing just 0.08% higher.
The Nasdaq slump was driven by nerves ahead of Nvidia's quarterly earnings call, which is due after the market closes tomorrow. This will be its first earnings call since the emergence of China's Deep Seek AI model shocked the foundations of the US "magnificent seven" and the AI-driven tech rally.
A softer Nvidia result will likely cause more stock market wobbles and could see a broader selloff in risk assets, including the US dollar.
As mentioned yesterday, the charts suggest the S&P 500 and Dow Jones have traced medium-term highs out last week. Despite the overnight fall, the Nasdaq is still clinging to support, but only just. Failure of 21,250.00 confirms more losses ahead.
The other significant event over the weekend was the German elections. The CDU appears to have seen off the far-right AfD party, bringing relief to the markets. EUR/USD has been forming a longer-term low since late December as the US dollar rally runs out of steam.
EUR/USD held triangle support at 1.0450 overnight, finishing 0.06% higher at 1.0467. A rally through resistance at 1.0530 signals more gains lie ahead, initially targeting 1.0630.
Elsewhere, the AUD/USD technical continues to signal a longer-term low, consolidating its gains above 0.6335 support. It has initial resistance above 0.6400 for now, but once overcome, the road lies clear for further gains, targeting 0.6550.
Oil markets remain choppy, prices buffeted by rhetoric from the White House and concerns about the impact of tariffs on global growth. The technical picture remains mixed. The charts suggest Brent crude could break out higher or lower. A neutral Relative Strength Index (RSI) also says prices could move either way from here.
Important levels to watch are resistance at $76.55 a barrel and support at $74.00. A daily close above or below these points will signal a 300-point directional move.
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