IForex Daily : January 30, 2014
iFOREX | Jan 30, 2015 05:24AM ET
Global equity markets were little changed yesterday after a late surge on Wall Street overcame earlier declines on worries about Greece's path and a mixed earnings season so far, while U.S. government bond yields rose on fresh signs of a strong American labor market. The Dollar was not far of a 11-year peak versus a basket of currencies. Global Oil prices steadied, but not before U.S. crude hit a near six-year low on data that showed fresh additions to already record-high U.S. Oil inventories. Gold prices tumbled to a two-week low, while Silver saw its biggest decline in 1-1/2 years after the Federal Reserve signaled it was still on track to lift U.S. interest rates this year. Today, we get a first look at fourth quarter U.S. GDP and to what extent slowing in global growth might be impacting the U.S.
EUR/USD
The Euro rebounded yesterday benefiting from record-low German unemployment data.
EURUSD closed at $1.13335, up 0.44%, in our platform, yesterday.
The Euro also got some support from speculation the SNB was interfering in the market.
Today, expect the market to move with the EU HICP flash and the U.S. GDP as it pays extra attention to Germany's retail sales, France's consumer manufacturing goods consumption and PPI, EU unemployment rate, U.S. employment cost index, Chicago PMI and U.S. consumer sentiment.
Pivot
1.126
Support
1.126
1.122
1.115
Resistance
1.1395
1.146
1.1535
Scenario 1: Long positions above 1.126 with targets 1.1395 & 1.146 in extension.
Scenario 2: Below 1.126 look for further downside with 1.122 & 1.115 as targets.
Comment: The pair has rebounded above its support and remains on the upside.
USD/CAD
The Canadian dollar weakened to levels not seen in nearly six years against its U.S. counterpart yesterday, on a combination of cheap Crude prices and diverging monetary policies between the Fed and the Bank of Canada.
USDCAD finished at C$126118, up 0.68% in our platform, yesterday.
Today, expect the market to move with the Canadian monthly GDP and the U.S. GDP as it pays extra attention to the U.S. employment cost index, Chicago PMI and U.S. consumer sentiment.
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Pivot
1.256
Support
1.256
1.2495
1.2455
Resistance
1.269
1.275
1.285
Scenario 1: Long positions above 1.256 with targets 1.269 & 1.275 in extension.
Scenario 2: Below 1.256 look for further downside with 1.2495 & 1.2455 as targets.
Comment: The RSI has just landed on its neutrality area at 50% and is turning up.
XAU/USD
Gold prices tumbled more than 2% to a two-week low yesterday, while Silver saw its biggest decline in 1-1/2 years after the Federal Reserve signaled it was still on track to lift U.S. interest rates this year.
Spot Gold closed at $1,261.06, down 1.85% or $23.73 in our platform, yesterday.
The U.S. is still the driver of global growth, the Fed is the only bank considering any sort of tightening, and that is expected to weigh on Gold.
Today, expect the market to move with the U.S. GDP as it pays extra attention to the U.S. employment cost index, Chicago PMI and U.S. consumer sentiment.
Pivot
1,275
Support
1,248
1,234
1,225
Resistance
1,275
1,285
1,293
Scenario 1: Short positions below 1,275 with targets 1,248 & 1,234 in extension.
Scenario 2: Above 1,275 look for further upside with 1,285 & 1,293 as targets.
Comment: As long as 1,275 is resistance, likely decline to 1,248.
OIL/USD
WTI Crude Oil was almost unchanged from the lowest level in almost six years while Brent's premium over West Texas Intermediate widened to a one-month high.
WTI futures closed at $44.58, up 0.22% or $0.10 in our platform, yesterday.
U.S. stockpiles are still very high and the fundamentals of the Global economy are weak.
Today, expect the market to move with the U.S. GDP as it pays extra attention to the U.S. employment cost index, Chicago PMI and U.S. consumer sentiment.
Pivot
45
Support
43.56
42.6
41.5
Resistance
45
45.7
46.6
Scenario 1: Short positions below 45 with targets 43.56 & 42.6 in extension.
Scenario 2: Above 45 look for further upside with 45.7 & 46.6 as targets.
Comment: As long as 45 is resistance, likely decline to 43.56.
DOW/USD
U.S. stocks rallied into the close and ended yesterday's session with solid broad-based gains.
The Dow Future closed at 17,401, up 1.41% in our platform, yesterday.
Analysts pointed to a rebound in Oil prices as the driving force behind the resurgence, as stocks have been closely tracking crude-Oil futures, lately.
Today, expect the market to move with the U.S. GDP as it pays extra attention to the U.S. employment cost index, Chicago PMI and U.S. consumer sentiment.
Pivot
16,685
Support
16,885
16,200
15,760
Resistance
17,800
18,075
18,295
Scenario 1: Long positions above 16,685 with targets 17,800 & 18,075 in extension.
Scenario 2: Below 16,685 look for further downside with 16,200 & 15,760 as targets.
Comment: The RSI lacks downward momentum.
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