Daily Market Review: Dollar Traded Mixed, Gold Fell, Crude Oil Rose
UFXMarkets | Jun 19, 2013 02:29AM ET
Wall Street finished the trading day in the green in response to optimism regarding the likelihood of the Federal Reserve maintaining its stimulus measures; the FOMC Press Conference is scheduled for Wednesday, June 19. Walmart rose by 1.04%, closing at $75.73. The S&P 500 gained by 0.78%, the NASDAQ by 0.61%, and the Dow Jones by 0.91%. Technically, according to the one-hour chart, the Dow Jones is still trading in an ascending channel; however, the index is located at the top of this channel and is expected to rebound towards the 15,260 support level once again. The NASDAQ has a strong resistance level at 3,000; should it hold below this level, it could move back towards 2,985.
US Dollar (USD)
The US Dollar traded mixed against most of the major currencies after the Core CPI and Building Permits came out at the expected 0.20% and 0.97M, respectively. Investors are waiting for the Federal Reserve's announcement on interest rates and monetary policy, scheduled for today, before turning to the safe haven of the US Dollar. Today’s Interest Rate Decision is expected to remain unchanged at 0.50%, and the focus will remain on the FOMC Economic Projections and the FOMC Press Conference.
Gold
Gold fell by 1.11%, closing at $1,368 an ounce amid speculation that the Federal Reserve might begin to phase out its massive stimulus program. Technically, according to the daily chat, Gold is still trading in a "Symmetrical Triangle," and we can expect a breakout soon. Should Gold break below the support level of $1,357, it could move towards $1,337 once again. The precious metal is trading below the Moving Average 20 level, which supports the negative momentum, as well.
Gold – Last: 1,365
Resistance 1370 1375 1385
Support 1357 1337 1320
Crude Oil
Crude Oil rose by 0.64%, closing at $98.72. Technically, according to the weekly chart, the trend for Gold is strongly bullish. Key resistance is located at $99.40, which is the last resistance level on the way to $100. Should Oil cross above this level, it could move towards the $100.50 resistance level. The RSI indicator holding above 50 supports the bullish trend, as well.
Crude Oil – Last: 98.70
Resistance 99.40 100.00 100.50
Support 98.20 97.80 97.40
Euro (EUR)
The euro gained versus the US Dollar, hitting a new high of 1.3410 after European Central Bank President Mario Draghi said that the bank is prepared to use interest rates and other measures to support economic growth in the Eurozone. In addition, investors left the safe haven of the US Dollar in anticipation of the FOMC Press Conference, which is scheduled for today. The German ZEW Economic Sentiment came out at 38.50 vs. 38.20, the ZEW Economic Sentiment at a better than expected 30.60 vs. 29.40. Technically, according to the one-hour chart, the trend for the EUR/USD is strongly bullish. However, strong resistance is located at 1.3440, and the pair is expected to rebound towards 1.3340. Holding below the higher Bollinger Band supports the expected retracement, as well. No major economic data is expected to be released in the Eurozone today.
EUR/USD – Last: 1.3385
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Resistance 1.3440 1.35 101.3600
Support 1.3340 1.3290 1.3230
British Pound (GBP)
The Pound dropped versus the US Dollar after the CPI came out better than had been expected, at 2.70% vs. 2.60%, and after the PPI Input came out worse than expected, at -0.30% vs. 0.10%. Technically, according to the one-hour chart, the Pound is holding above the 38.20% Fibonacci support level of 1.5565. The GBP/USD, which is considered bullish so long as it trades above this support level, is expected to resume climbing towards 1.5700 once again. MPC Meeting Minutes are scheduled to be released today, after which Bank of England Governor Mervyn King will speak.
GBP/USD - Last: 1.5620
Resistance 1.5650 1.5700 1.5750
Support 1.5565 1.5500 1.5380
Japanese Yen (JPY)
In response to the release of important macroeconomic data in the US, the Japanese Yen fell versus the US Dollar for the third straight day. The Trade Balance came out better than had been expected, at -0.82T vs. -0.89T. Technically, according to the one-hour chart, the pair is trading in an "Ascending Triangle." Should the USD/JPY cross above the resistance level of 95.75, it could move towards the 96.90 resistance level. Should, however, the pair break below the support level of 95.00, it could move back to 94.20 levels. No major economic data is expected to be released in Japan today.
USD/JPY - Last: 95.30
Resistance 95.70 96.90 97.70
Support 95.00 94.20 93.75
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