IForex Daily: USD Expands Gains Against Yen And Euro
iFOREX | Mar 02, 2015 05:13AM ET
The dollar expanded gains against the yen and the euro on Friday after data showed that the U.S. economy expanded modestly, but more than expected in the last quarter of 2014, supporting expectations for interest rate increases. Other reports showed that U.S. pending home sales rose to a one-and-a-half year high in January and consumer sentiment also remained strong. The February reading of the University of Michigan's consumer sentiment index was revised up to 95.4 from the preliminary reading of 93.6. Earlier in the week, Federal Reserve Chair Janet Yellen said that if the economy keeps improving as the bank expects it will modify its forward guidance.
EUR/USD
The dollar posted a sharp rise against the euro on Thursday after stronger-than-forecast data on U.S. durable goods orders and continued upwards on Friday after US G.D.P data added to indications that the economic recovery is on track.
U.S. gross domestic product grew at an annual rate of 2.2% in the last quarter of 2014, ahead of expectations for 2.1% growth. U.S. pending home sales rose to a one-and-a-half year high in January and consumer sentiment also remained strong. For Monday, the pair is expected to react to the euro zone preliminary data on consumer prices and a report on unemployment, while the U.S will announce, the Institute of Supply Management report on manufacturing activity.
Pivot
1.1245
Support
1.115
1.1095
1.1
Resistance
1.1245
1.127
1.13
Scenario 1: Short positions below 1.1245 with targets @ 1.115 & 1.1095 in extension.
Scenario 2: Above 1.1245 look for further upside with 1.127 & 1.13 as targets.
Comment: The pair stands below its resistance and remains under pressure.
XAU/USD
Despite the positive growth data from the U.S, gold prices gained on Monday after data from China, the biggest buyer of the yellow metal supported prices. The Chinese HSBC manufacturing index for February rose to 50.7, above the reading of 50.1 thus entering the expansion zone. In addition, the People's Bank of China cut its benchmark interest rate by 25 basis points to 5.35 adding further support to the yellow metal. For today, investors will be turning their attention to the Institute of Supply Management report on manufacturing activity and for the week ahead, on Friday's U.S. nonfarm payrolls report for further indications on the strength of the U.S recovery.
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Pivot
1210.5
Support
1210.5
1204.3
1201
Resistance
1229.6
1237
1240
Scenario 1: Long positions above 1210.5 with targets @ 1229.6 & 1237 in extension.
Scenario 2: Below 1210.5 look for further downside with 1204.3 & 1201 as targets.
Comment: The RSI is mixed to bullish.
OIL/USD
Oil stayed in the red on Monday on supply concerns despite partly recovering from earlier losses after a private business survey showed an improvement in China's manufacturing sector in February.
Crude Oil prices fell about 1% early this morning, after rising 3% in February, their first monthly rise since June, as surplus oil supply outweighed Beijing's efforts to support the world's second largest economy. Today investors will focus on the U.S Institute of Supply Management report on manufacturing activity and for the week ahead, on Wednesday's inventory data from the Energy Information Administration.
Pivot
47.8
Support
47.8
46.25
45.5
Resistance
50.5
51.25
52.5
Scenario 1: Long positions above 47.8 with targets @ 50.5 & 51.25 in extension.
Scenario 2: Below 47.8 look for further downside with 46.25 & 45.5 as targets.
Comment: The RSI is mixed with a bullish bias.
DOW/USD
The main U.S stock indices fell on Friday after the modest G.D.P data, however U.S. markets ended February at near record-highs after posting the highest monthly gains in more than two years. The Dow Jones Industrial Average closed Friday in negative territory, however the index was up more than 5.5% for the month posting the largest monthly gain since January, 2013. For today, investors will be turning their attention to the Institute of Supply Management report on manufacturing activity and for the week ahead, on Friday's U.S. nonfarm payrolls report for further indications on the strength of the U.S recovery.
Pivot
18120
Support
18120
18030
17940
Resistance
18230
18310
18410
Scenario 1: Long positions above 18120 with targets @ 18230 & 18310 in extension.
Scenario 2: Below 18120 look for further downside with 18030 & 17940 as targets.
Comment: A support base at 18120 has formed and has allowed for a temporary stabilization.
Facebook Inc (NASDAQ:FB) stock posted a sharp drop on Friday morning after German consumers have started to send warnings to the social media giant regarding online privacy. The largest consumer protection organization in Germany said that it would be sending a lawsuit to Facebook if the company refused to change its terms of service. Facebook took a more surprised stance in their reaction to the complaint and informed the press that they are reviewing the complaint in more detail.
Pivot
73.3
Support
73.3
68.45
62.40
Resistance
82.15
87.3
95
Scenario 1: Long positions above 73.3 with targets @ 82.15 & 87.3 in extension.
Scenario 2: Below 73.3 look for further downside with 68.45 & 62.4 as targets.
Comment: The RSI is above its neutrality area at 50%.
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