IForex Daily: Dow Pushed Down By Losses In Industrial, Technology Sector
iFOREX | Mar 04, 2015 04:12AM ET
The euro fell to one-month lows against the U.S. dollar on Tuesday, as caution ahead of the European Central Bank's monthly policy meeting took the focus away from some solid economic reports from Spain and Germany released earlier in the day. The main U.S indices touched record highs yesterday and then gave away most of the day's gains following losses in the health care, industrial and information technology sectors. Oil prices received strong support from Israeli PM Netanyahu's address in front of the Congress where he expressed his opposition against a deal with Iran and spoke about further sanctions.
EUR/USD
German retail sales jumped 2.9% in January, easily passing forecasts for a 0.4% increase, however the euro was seen touching one month lows, as investors remained cautious ahead of the upcoming European Central Bank meeting on Thursday, when it was expected to announce details of its quantitative easing program. For today the market is expected to react to the services PMI indicator from Germany and eurozone as well as retails sales from eurozone. Later in the day, the U.S will announce the ADP Employment report, the Services PMI report as well as the ISM Non-Manufacturing index.
Pivot
1.121
Support
1.115
1.1095
1.105
Resistance
1.121
1.1245
1.127
Scenario 1: Short positions below 1.121 with targets @ 1.115 & 1.1095 in extension.
Scenario 2: Above 1.121 look for further upside with 1.1245 & 1.127 as targets.
Comment: The pair stands below its resistance and remains under pressure.
XAU/USD
Gold price was little changed in subdued trade on Tuesday, as market players looked ahead to the upcoming European Central Bank meeting as well as key U.S. employment data later in the week.
The precious metal closed the day in red on Tuesday with investor's attention turned to the upcoming European Central Bank meeting on Thursday, when it is expected to announce details of its quantitative easing program. Traders also look ahead to the release of the latest U.S. nonfarm payrolls report on Friday, for further indications on the strength of the recovery in the labor market.
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Pivot
1214.75
Support
1195
1190.1
1186
Resistance
1214.75
1219.9
1223.5
Scenario 1: Short positions below 1214.75 with targets @ 1195 & 1190.1 in extension.
Scenario 2: Above 1214.75 look for further upside with 1219.9 & 1223.5 as targets.
Comment: As long as 1214.75 is resistance, likely decline to 1195.
OIL/USD
Oil prices rose sharply on Tuesday, during Israeli Prime Minister Benjamin Netanyahu's address in front of Congress and then fell slightly lower. Netanyahu tried to persuade legislators to avoid a deal with Iran on the nation's nuclear program, describing its Middle East neighbors as a "threat to the entire world,". Netanyahu also added that more sanctions against Iran could put further limitations on the nation's oil exports. Investors will be focusing on EIA inventory data today, and also on how the oil industry will impact the jobs market as demand for workers in energy-related occupations is plunging.
Pivot
49.45
Support
49.45
48.7
47.8
Resistance
51.25
52.5
54
Scenario 1: Long positions above 49.45 with targets @ 51.25 & 52.5 in extension.
Scenario 2: Below 49.45 look for further downside with 48.7 & 47.8 as targets.
Comment: The RSI lacks downward momentum.
DOW/USD
U.S stocks posted a sharp drop after the Dow Jones, the S&P and Nasdaq reached record territories on Tuesday. The Dow was pushed down by losses in the health care, industrial and information technology sectors, stocks while further pressure came during Israeli Prime Minister Benjamin Netanyahu's address to Congress. Netanyahu tried to persuade legislators to avoid a deal with Iran on the nation's nuclear program, describing its Middle East neighbors as a "threat to the entire world," For today investors will be focusing on the ADP Employment report, the Services PMI report as well as the ISM Non-Manufacturing index from the U.S.
Pivot
18270
Support
18120
18030
17940
Resistance
18270
18310
18365
Scenario 1: Short positions below 18270 with targets @ 18120 & 18030 in extension.
Scenario 2: Above 18270 look for further upside with 18310 & 18365 as targets.
Comment: As long as 18270 is resistance, look for choppy price action with a bearish bias.
Apple Inc (NASDAQ:AAPL)
Morgan Stanley (NYSE:MS) raised its price target on Apple from $130 to $160 this week after the Department of Labor has issued a report determining how Americans are spending their time and noted that Americans that use Apple products will do so for about one-third of their day. Morgan Stanley feels that Apple can occupy another 40% of the day thanks to the Apple Watch, which is scheduled for release this month.
Pivot
131
Support
125.5
123
120.5
Resistance
131
133.6
137
Scenario 1: Short positions below 131 with targets @ 125.5 & 123 in extension.
Scenario 2: Above 131 look for further upside with 133.6 & 137 as targets.
Comment: As long as 131 is resistance, look for choppy price action with a bearish bias.
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