Daily Market Review: US Markets Boosted On Good Economic Data
UFXMarkets | Jun 18, 2013 02:45AM ET
Wall Street finished the trading day in the green as investors speculated that the Federal Reserve is about to phase out its massive stimulus program. Indices were also given a boost by better than expected economic data from the U.S. The S&P 500 rose by 0.76%, closing at 1,641; the Dow Jones climbed by 109.67 points, closing at 15,200; and the NASDAQ rose by 0.83%, closing at 2,974. Boeing gained by 1.18%, for the company won a contract, valued at $354 million, for the upgrade of four French E-3F Airborne Warning and Control System aircrafts. Technically, according to the 8-hour chart, the NASDAQ is trading in a descending channel and might reach the support level of 2,950. The MACD indicator holding below the 0 level supports the bearish trend, as well.
US Dollar (USD)
The US Dollar traded mixed against most of the major currencies yesterday after the Empire State Manufacturing Index came out much better than expected, at 7.8 vs. 0.4. Investors are waiting for the Federal Reserve's meeting this week before turning to the safe haven of the US Dollar. Today, Building Permits are expected to come out at 0.98 vs. -1.02 previously, the Core CPI at 0.2% vs. 0.1% previously, and Housing Starts at 0.95M vs. 0.85M previously. High volatility is expected for the US Dollar.
Gold
Gold fell by 0.50%, closing at $1,384 an ounce as stocks continued gaining, which lowered demand for the precious metal as a safe haven asset. Technically, according to the 30- minutes chart, Gold is forming a “Symmetrical Triangle,” and a breakout is expected soon.
Should Gold break below the $1,380 level, it might move towards $1,370; should, however, Gold cross the $1,390 level, it might move towards $1,400 areas.
Gold – Last: 1385
Resistance 1390 1400 1420
Support 1380 1370 1350
Crude Oil
Crude Oil gained by 0.20%, closing at $98.12 a barrel in response to investors’ anxiety that a US decision to send arms to Syrian rebel forces might trigger a regional conflict. Technically, according to the daily chart, Oil is struggling with the resistance level of $98.20, at which level we can see a reversal candle. Should Oil break below the support level of $97.70, it could move towards $96.40. Holding below the upper Bollinger Band supports the reversal, as well.
Crude Oil – Last: 97.80
Resistance 98.20 99.00 100
Support 96.40 95.50 94.00
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Euro (EUR)
The euro gained slightly versus the US Dollar on Monday as investors, uncertain about the central bank’s next move, chose not to take action before the Federal Reserve’s policy statement on Wednesday. Technically, according to the daily chart, the trend for the EUR/USD is strongly bullish, and as long as the pair maintains its support level of 1.3240, it is expected to complete the "W" pattern and keep rising towards 1.3440. The RSI indicator is trading above the 50 level, which supports the positive momentum. Today, the German ZEW Economic Sentiment is expected to come out at 38.2 vs. 36.4 previously.
EUR/USD – Last: 1.3359
Resistance 1.3440 1.3510 1.3600
Support 1.3300 1.32401 .3140
British Pound (GBP)
The Pound declined slightly versus the US Dollar, remaining near a 4- month high ahead of the Federal Reserve’s policy statement this week. Investors are expressing optimism about the UK’s economic recovery. Technically, according to the 4-hour chart, the GBP/USD is trading above the bullish trend line; should it cross above the resistance level of 1.5750, it could move towards the next resistance at 1.5800. The pair is trading above the Moving Average 20 level, which supports the bullish trend. The CPI is expected to come out today at 2.6% vs. 2.4% previously, and the BOE Inflation Letter is expected to be released during the day.
GBP/USD - Last: 1.5711
Resistance 1.5750 1.5800 1.5870
Support 1.5650 1.5550 1.5500
Canadian Dollar (CAD)
The Canadian Dollar erased earlier gains and then dropped versus the US Dollar after the Foreign Securities Purchases came out much better than had been expected, at 14.91B vs. 4.59B. Technically, according to the weekly chart, a "Symmetrical Triangle" has emerged, and the pair is expected to retest the resistance level of 1.0230 once again. No major macroeconomic data is expected to be released in Canada today.
USD/CAD - Last: 1.0188
Resistance 1.0230 1.0300 1.0390
Support 1.0100 1.020 0.9900
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