Gold And US Dollar Strengthen As US Economy Recovers
UFXMarkets | Mar 07, 2013 04:12AM ET
Wall Street closed the trading day mixed after better than expected jobs data fueled hopes that the US economy is recovering. The Dow Jones gained by 0.20%, the NASDAQ fell by 0.32%, and the S&P 500 added 0.08% to its value. Apple declined by 2.00%, closing at $425.50. Technically, the Dow Jones is trading at record highs and could rebound towards $14,150. Should the NASDAQ cross above the resistance level of $2,810, it could move towards the $2,840 level.
US Dollar (USD)
The US Dollar rose against other major currencies after the ADP Non-Farm Employment Change came out at 198K, better than the expected 172K. The Trade Balance is expected to come out at -42B vs. -38.50B previously, and Unemployment Claims are expected to come out at 354K vs. 344K previously.
Gold
Gold rose by 0.45%, closing at $1,585 an ounce after the release of ADP data in the US. According to Fibonacci Retracement, strong resistance is located at the $1,586 level. The precious metal is expected to resume its downtrend towards $1,572.
Last: 1583
Resistance 1586 1596 1602
Support 1579 1572 1563
Crude Oil
Crude Oil fell by 0.44%, closing at $90.40 a barrel after Crude Oil Inventories came out at 3.80M vs. 0.90M. Technically, we can see a "Double Bottom" pattern in the one- hour chat, and the commodity is expected to rise towards the 91.70 resistance level.
Last: 90.40
Resistance 90.70 91.20 92.00
Support 89.90 89.40 88.40
Euro (EUR)
The euro declined versus the US Dollar after industry data in the US indicated that private sector hiring grew at a faster than expected pace in February. Technically, according to the four-hour chart, the trend will continue to be bearish as long as the pair maintains its resistance level of 1.3070. In addition to that, the RSI indicator is holding below 50, indicating a bearish trend for today, as well. Today’s Interest Rate Decision is expected to remain unchanged at 0.75%. The European Central Bank will conduct a press conference later today.
Last: 1.2990
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Resistance 1.3020 1.3070 1.3160
Support 1.2960 1.2880 1.2820
British Pound (GBP)
The Pound crashed against the US Dollar as Bank of England policy makers commenced a two-day meeting whose purpose it is to decide whether to implement more stimulus measures. Technically, strong support is located at 1.4980; a cross below this level might lead the Pound to the 1.4920 support level. The Asset Purchase Facility is expected to remain at 375B, the Interest Rate Decision to remain unchanged at 0.50%.
Last: 1.5000
Resistance 1.5040 1.5105 1.5180
Support 1.4980 1.4920 1.4860
Australian Dollar (AUD)
The Australian Dollar fell versus the US Dollar after data showed that the private sector in the US added more jobs than expected in February. The GDP came out unchanged (as expected) at 0.6%. Technically, the trend is strongly bearish, and the pair is expected to keep falling towards the support level of 1.0180. No major economic data is expected to be released in Australia today.
Last: 1.0245
Resistance 1.0290 1.0330 1.0365
Support 1.0220 1.0180 1.0110
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