IForex Daily: Dollar Remains Strong, Traders Await Possible Iran Deal
iFOREX | Mar 31, 2015 06:17AM ET
The dollar remained strong against most major currencies on Monday, after the release of positive U.S. economic reports on housing and personal income. In a report, the U.S. National Association of Realtors said pending home sales rose 3.1% last month, easily surpassing expectations for a 0.4% gain. In addition, the U.S. Commerce Department reported a rise in personal spending by 0.1% last month, below expectations for 0.2% increase. The report also showed personal income rose 0.4% in February, above forecasts for a 0.3% increase and after gaining 0.4% in January. This week, traders await for a possible deal regarding Iran's nuclear program. According to a U.S. State Department spokesman there's a "50-50 chance," an agreement with Iran will be reached by Tuesday night.
EUR/USD
Strong housing data and positive personal income figures caused the U.S. dollar to gain against the euro on Monday. In addition, continuing tensions in Greece, as well as a potential expansion of the quantitative easing program in China and a possible agreement with Iran also contributed to recent gains in the dollar. For Tuesday, the euro zone is to release preliminary data on consumer inflation and a monthly employment report while Germany is going to publish a report on retail sales and its unemployment rate. The U.S. is to release data on consumer confidence.
Pivot
1.0865
Support
1.075
1.069
1.065
Resistance
1.0865
1.09
1.0955
Scenario 1: Short positions below 1.0865 with targets @ 1.075 & 1.069 in extension.Scenario 2: Above 1.0865 look for further upside with 1.09 & 1.0955 as targets.Comment: The pair is breaking below its support.
XAU/USD
Recent gains in the dollar and the possibility of an agreement being reached with Iran, improve market confidence and add significant pressure on the precious metal as a safe haven asset and as an alternative investment. Gold has been on a two day losing streak as a deal with Iran could limit Iran's nuclear capabilities pushing investors away from the precious metal and into riskier yield bearing assets. Gold traders are monitoring China for any new moves that could spur growth providing some support on the metal. In addition, consumer confidence data from the U.S also remain in focus.
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Pivot
1192
Support
1179
1168.5
1160
Resistance
1192
1199
1206.5
Scenario 1: Short positions below 1192 with targets @ 1179 & 1168.5 in extension.Scenario 2: Above 1192 look for further upside with 1199 & 1206.5 as targets.Comment: As long as 1192 is resistance, likely decline to 1179.
OIL/USD
Crude oil prices dropped for a second day on Monday, giving back most of the recent gains, as Iran and world powers tried to negotiate a deal on Tehran's nuclear program that could end sanctions imposed on the OPEC member and allow it to ship more oil into an already oversupplied market. Following the talks in Lausanne and Switzerland, markets believe there could be some agreement to partially free Tehran of the U.S.-led sanctions on Tuesday. Oil prices also received pressure by recent gains in the dollar that made the commodity costlier for holders of other currencies. Besides Iran, markets will be focusing on government inventory data from the U.S due to be released tomorrow.
Pivot
49.5
Support
47
45.3
44
Resistance
49.5
51.15
52.5
Scenario 1: Short positions below 49.5 with targets @ 47 & 45.3 in extension.Scenario 2: Above 49.5 look for further upside with 51.15 & 52.5 as targets.Comment: As long as 49.5 is resistance, likely decline to 47.
DOW/USD
The main U.S. stock indices rose by more than 1 percent on Monday, after a sharp drop last week. The major boost to investors' risk appetite was provided by a rise in Chinese stocks to seven-year highs, supported by more infrastructure spending and a potential expansion of monetary policy easing. The Dow posted its biggest daily gain since Feb. 3. Friday's employment report and upcoming earnings, which start in mid-April, could bring some volatility in the market this week, with the stock market closed for Good Friday. For today markets will focus on consumer confidence data from the U.S.
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 advocates for further upside.
APPLE
Shares of Apple (NASDAQ:AAPL) rose sharply yesterday, closing above $126 on our platform after a report was recently surfaced that the tech giant would introduce three new iPhone models this fall. Taiwanese website DigiTimes reported that Apple intends to release the iPhone 6S with a 4.7-inch display, the iPhone 6S Plus with a 5.5-inch display, and a smaller handset known as the iPhone 6C with a 4-inch display.All of the new iPhones would feature fingerprint scanning and NFC technologies for security and Apple Pay applications.
Pivot
126.6
Support
122
120.5
118.5
Resistance
126.6
129.6
131.4
Scenario 1: Short positions below 126.6 with targets @ 122 & 120.5 in extension.Scenario 2: Above 126.6 look for further upside with 129.6 & 131.4 as targets.Comment: The RSI is below its neutrality area at 50%
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