IForex Daily: USD Sees Strongest Gain Against EUR In 10 Days
iFOREX | Apr 01, 2015 05:56AM ET
On Tuesday the U.S. dollar posted its strongest daily gain against the euro in more than 10 days, amid strong consumer sentiment and a lack of progress in negotiations between Greece and its euro zone creditors. But overnight it slipped lower against the yen and the euro, as data pointing to weak business sentiment in Japan pressured equities lower, shoring up demand for the safe-have yen, plus stronger-than-expected Chinese manufacturing data also dented demand for the dollar. Today investors will focus on ADP Non-Farm Employment Change and on ISM Manufacturing PMI, but all the focus will be for this Friday's Non-Farm Payrolls and unemployment Rate.
EUR/USD
The euro was up on Wednesday, off Tuesday's lows of 1.0712.
Never the less the euro looked likely to remain under pressure as uncertainty over Greece continued to weigh. Athens will run out of cash later this month unless it can reach a compromise with its creditors on a program of economic reforms in time to unlock more bailout funds.
Investors are now turning their attention to the latest U.S. jobs report, due out on Friday, which are expected to support expectations for higher interest rates.
Pivot
1.081
Support
1.071
1.065
1.061
Resistance
1.081
1.085
1.09
Scenario 1: Short positions below 1.081 with targets @ 1.071 & 1.065 in extension.
Scenario 2: Above 1.081 look for further upside with 1.085 & 1.09 as targets.
Comment: The pair is posting a rebound but stands below its resistance.
XAU/USD
Gold prices got a boost on Wednesday in Asia on data that showed a better than expected figure for China manufacturing in March and an overall solid tone from data and surveys in Australia and Japan. Global investors are also awaiting a potential deal regarding the destabilization of Iran's nuclear program. Elsewhere, Greece's inability to reach a deal with its creditors has stoked fears that it could leave the European Union and eventually default on its sovereign debt; this instability is supporting the precious metal.
Today investors will focus on ADP Non-Farm Employment Change and on ISM Manufacturing PMI, but all the focus will be for this Friday's Non Farm Payrolls and unemployment Rate.
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Pivot
1178.3
Support
1178.3
1168.5
1160
Resistance
1194.5
1199
1206.5
Scenario 1: Long positions above 1178.3 with targets @ 1194.5 & 1199 in extension.
Scenario 2: Below 1178.3 look for further downside with 1168.5 & 1160 as targets.
Comment: A support base at 1178.3 has formed and has allowed for a temporary stabilisation.
OIL/USD
Crude oil prices fell in Asia on Wednesday after better than expected HSBC (LONDON:HSBA) China PMI and amid speculation that a last-minute deal over Iran's nuclear program would be reached that could allow more Iranian crude into world markets. But talks between Iran and six world powers to settle a dispute around Tehran's nuclear program extended beyond a Tuesday deadline, as the parties edged towards a deal, but failed to agree on crucial details such as the lifting of U.N. sanctions. Efforts to reach a framework deal are scheduled to continue this morning in the Swiss city of Lausanne, but today markets will be focusing also on government inventory data from the U.S.
Pivot
48.8
Support
47
45.3
44
Resistance
48.8
50.2
51.15
Scenario 1: Short positions below 48.8 with targets @ 47 & 45.3 in extension.
Scenario 2: Above 48.8 look for further upside with 50.2 & 51.15 as targets.
Comment: As long as 48.8 is resistance, likely decline to 47.
DOW/USD
Stocks on the U.S. equities markets were broadly lower on Tuesday snapping a two-day winning streak, to cap one of the most volatile months in recent memory. The Dow Jones Industrial Average fell more than 200 points or 1.11% on Tuesday, dropping into negative territory for the year and registering its first negative quarter since the fourth quarter of 2012.
Today investors will focus on ADP Non-Farm Employment Change and on ISM Manufacturing PMI, but all the focus will be for this Friday's Non Farm Payrolls and unemployment Rate, which could bring some more volatility in the market this week.
Pivot
17620
Support
17620
17040
16330
Resistance
18290
18900
19200
Scenario 1: Long positions above 17620 with targets @ 18290 & 18900 in extension.
Scenario 2: Below 17620 look for further downside with 17040 & 16330 as targets.
Comment: The RSI lacks downward momentum.
MCD
McDonald's Corp (NYSE:MCD), the world's biggest fast-food chain, is introducing table service as it reinvents itself as a "modern, progressive burger company" under new Chief Executive Steve Easterbrook. Recently it has been testing myriad of new ideas, including kiosk ordering, custom burgers and even a completely new restaurant brand in a bid to revive slumping sales and better compete with more nimble chains ranging from Chipotle Mexican Grill Inc (NYSE:CMG). to Burger King. In meetings with financial analysts last week, the new CEO called himself an "internal activist" and said he would look at everything that could create shareholder value, including cost cutting and a real estate investment trust, in order to support the uptrend of the share's price.
Pivot
91.5
Support
91.5
86.75
83.2
Resistance
101.3
104
107.5
Scenario 1: Long positions above 91.5 with targets @ 101.3 & 104 in extension.
Scenario 2: Below 91.5 look for further downside with 86.75 & 83.2 as targets.
Comment: The RSI is supported by a rising trend line.
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