IForex Daily : December 18, 2014
iFOREX | Dec 18, 2014 05:09AM ET
U.S. stock averages posted their best day this year and the Dollar strengthened on Wednesday after the Federal Reserve signaled America's economy was strong enough to handle interest rate hikes in 2015. Meanwhile, Oil prices increased and the Ruble gained. Today, European Central Bank President Mario Draghi will participate at the European Council meeting.
EUR/USD
The Dollar posted its biggest daily gain against major currencies since early October on Wednesday after the Federal Reserve signaled it was on track to hike interest rates sometime next year.
EURUSD closed at $1.23378, down 1.38%, yesterday in our platform.
The Dollar hit its highest levels against the Euro in over a week after the Fed omitted the phrase "considerable time", an instead used "can be patient" in a show of confidence in the U.S. economy, besides, a comment from Fed Chair Janet Yellen during the press conference saying that the committee considered it unlikely to begin the normalization process for "at least the next couple of meetings" was viewed as a sign the central bank could hike rates sooner.
Today, expect markets to move with the German Ifo survey, the U.S. jobless claims, the Philadelphia Fed survey, and the comments of ECB President Mario Draghi at the European Council.
Pivot
1.236
Support
1.2245
1.219
1.215
Resistance
1.236
1.242
1.248
Scenario 1: Short positions below 1.236 with targets 1.2245 & 1.219 in extension.
Scenario 2: Above 1.236 look for further upside with 1.242 & 1.248 as targets.
Comment: The pair remains under pressure as the RSI is badly directed.
USD/RUB
Despite the Federal Reserve signaling is on track to hike interest rates sometime next year, the Dollar fell against the Ruble, on the view that the Russian currency's collapse may have gone too far.
USDRUB finished at $60.852, down 15.01% yesterday in our platform.
Today, expect the markets to move with the U.S. jobless claims, and the Philadelphia Fed survey, and the comments of President Vladimir Putin.
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XAU/USD
Spot Gold prices fell to a two-week low on concern that the Federal Reserve is moving closer to raising U.S. interest rates, reducing the precious metal's appeal as a store of value.
Spot Gold closed at $1,190.79, down 0.57% or $6.84, yesterday in our platform.
The Fed omitted the phrase "considerable time", an instead used "can be patient" in a show of confidence in the U.S. economy, besides, a comment from Fed Chair Janet Yellen during the press conference saying that the committee considered it unlikely to begin the normalization process for "at least the next couple of meetings" was viewed as a sign the central bank could hike rates sooner.
Today, expect the markets to pay extra attention to the U.S. jobless claims, and the Philadelphia Fed survey.
Pivot
1,203
Support
1,183
1,177
1,167
Resistance
1,203
1,210
1,217
Scenario 1: Short positions below 1,203 with targets 1,183 & 1,177 in extension.
Scenario 2: Above 1,203 look for further upside with 1,210 & 1,217 as targets.
Comment: The RSI is mixed and calls for caution.
OIL/USD
WTI Crude Oil rebounded after a market selloff prompted by concerns over rising supply and weak demand growth took a pause.
WTI futures closed at $56.36, up 1.75%, or $0.97 in our platform yesterday.
West Texas Intermediate minimized the importance of an increase in supplies last week, as stated by the EIA petroleum report.
Today, expect the markets to pay extra attention to the U.S. jobless claims, and the Philadelphia Fed survey.
Pivot
55
Support
55
53.94
53
Resistance
59.3
60.5
61.8
Scenario 1: Long positions above 55 with targets 59.3 & 60.5 in extension.
Scenario 2: Below 55 look for further downside with 53.94 & 53 as targets.
Comment: The RSI is mixed to bullish.
DOW/USD
The Dow Jones Industrial Average scored its best one-day gain of 2014 Wednesday, minimizing the importance of falling-Oil worries and Global deflationary concerns, after the Federal Reserve brought a more dovish posture at the conclusion of its two-day meeting.
The Dow Future closed at 17,348, up 1.40% in our platform, yesterday.
Stocks were already solidly higher ahead of the meeting, as currency and commodity markets calmed following two sessions of wild swings. However, indexes soared after the Federal Open Market Committee's statement modified its "considerable time" language saying it "can be patient" about the timing of the first rate hike.
Today, expect markets to move with the U.S. jobless claims, the Philadelphia Fed survey, and to pay extra attention to the comments of ECB President Mario Draghi at the European Council.
Pivot
17,120
Support
17,120
16,970
16,850
Resistance
17,370
17,500
17,700
Scenario 1: Long positions above 17,120 with targets 17,370 & 17,500 in extension.
Scenario 2: Below 17,120 look for further downside with 16,970 & 16,850 as targets.
Comment: The RSI is bullish and calls for further advance. A limited pullback (consolidation) is expected towards the former bearish channel resistance; ahead of a continuation of the rebound.
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