Morning Note: Zoom Q4 Earnings, Eurozone Inflation & Oil Prices

Investors Eye Zoom Q4 Earnings Report

Zoom Video is scheduled to report fourth quarter fiscal 2025 results on 24th February 2024 at GMT 22:00. For the fiscal fourth quarter, the revenues are expected to be $1.18 billion, suggesting a 2.77% rise from the year-ago quarter’s reported figure. Zoom’s strategic initiatives might have influenced fourth-quarter performance. The December introduction of Zoom Workplace for Education could strengthen its position in the education sector while making the Video SDK available to resale partners, which might have expanded its developer ecosystem.

(Zoom Communications Inc. Daily Chart, Source: Trading View)
From a technical analysis perspective, the share price has been in a bullish trend since late August, characterised by higher highs and higher lows. However, it experienced a liquidity sweep and reached its near-term high at the end of October, which drove the price downward until it found support at the previous support zone. Currently, the price is trading between a key resistance zone and a support

zone. A decisive breakout in either direction could significantly increase the likelihood of the price continuing to move in that direction.

Will Eurozone Inflation Surprise the Market?

As of December 2024, the Eurozone's annual inflation rate is 2.4%, with monthly inflation of 0.4%. The year-over-year inflation rate is expected to reach 2.5%, while the month-over-month rate is projected to be -0.2%. The actual annual inflation rate matching expectations underscores the ongoing impact of rising energy costs and sustained inflation in the services sector. The expected monthly decrease is consistent with usual seasonal patterns and recent changes in consumer behaviour, resulting in price adjustments across different sectors.

(EUR/USD Daily Chart, Source: Trading View)
From a technical analysis perspective, the EUR/USD currency pair has been in a bearish trend since the beginning of October, as indicated by the lower highs and lower lows. However, it recently formed a liquidity sweep and made multiple retests of the support zone, finding solid support there and driving the price upward. Currently, the price is testing the previous high level. If the price can close above this zone, it is highly likely to continue moving upward.

Oil Slips as Iraq-Turkey Pipeline Nears Reopening

Oil prices dipped in early trading during the Asia session on Monday, primarily due to the potential resumption of exports from Kurdistan’s oilfields. Iraq’s oil ministry announced that all necessary procedures have been finalised to allow exports to resume through the Iraq-Turkey pipeline. This could resolve a nearly two-year-long dispute that has hindered crude flows. Moreover, investors are also looking for updates on negotiations aimed at ending Russia’s war on Ukraine.

(U.S Crude Oil Futures Daily Chart, Source: Trading View)
From a technical analysis perspective, the broader trend of crude oil futures remains bearish, as indicated by the lower highs and lower lows. Recently, the price broke below the support zone with significant bearish momentum. It then retested the previously broken swap zone and was rejected with strong bearish momentum. The price is currently retesting the support zone. If the price breaks below this support zone, bearish momentum could continue to push the price downward, potentially retesting another crucial support zone below.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.