IForex Daily : May 28, 2014
iFOREX | May 28, 2015 05:45AM ET
Following a quiet trading session, free of important economic releases, the dollar remained supported at eight-year highs against the yen and higher against most major currencies on Wednesday as expectations increase that an interest rate hike will take place before the end of the year. At the same time, commodities including crude oil and precious metals are also under pressure due to the recent strength of the dollar especially after the solid data announced on Tuesday from the U.S. manufacturing sector, core durable goods orders and the improvement in consumer sentiment. For today, investors will be focusing on jobless claims data from the U.S., as well as pending home sales, while the Energy Information Administration will be announcing its delayed U.S. inventory report for last week.
EUR/USD
The euro found some support on Wednesday, after Greek government officials had taken back their previous statements and had expressed their confidence that a €305 million payment to the IMF on June 5 is possible. The EUR/USD pair posted a slight recovery following a 4-day drop with investors watching closely on how the situation in Greece will unfold. Greek officials expressed their belief that a deal can be reached without having to make pension or wage cuts. For today, a series of economic reports on consumer confidence as well as business climate and industrial confidence will be released from euro zone while the U.S. will be publishing it's jobless claims and pending home sales reports later in the day.
Pivot: 1.086
Support: 1.086; 1.082; 1.078
Resistance: 1.1005; 1.106; 1.11
Scenario 1: Long positions above 1.086 with targets @ 1.1005 & 1.106 in extension.
Scenario 2: Below 1.086 look for further downside with 1.082 & 1.078 as targets.
Comment: The pair has rebounded above its resistance.
XAU/USD
Gold prices have plummeted in the last week, following a big wave of optimistic U.S. economic data that pushed the dollar to its highest levels and increased expectations that an interest rate hike will take place before the end of the year. Prices received further pressure on Wednesday extending losses after the positive developments in negotiations between Greece and its creditors. However, the metal found some support as Central Bank of Japan minutes showed signs that the government may proceed to additional monetary easing later this year. For today, investors will be focusing on jobless claims and pending home sales reports due later in the day.
Get The News You Want
Pivot: 1196
Support: 1182; 1178; 1170
Resistance: 1196; 1204, 1209.5
Scenario 1: Short positions below 1196 with targets @ 1182 & 1178 in extension.
Scenario 2: Above 1196 look for further upside with 1204 & 1209.5 as targets.
Comment: As long as 1196 is resistance, likely decline to 1182.
OIL/USD
Crude oil prices fell yesterday after the American Petroleum Institute announced an increase in inventories last week. Oil traders will be watching closely on today's inventory report by the U.S. Department of Energy, that was delayed a day because of the Memorial Day public holiday. Prices are also pressured by rising expectations that Iraq plans to flood the global markets with Iraqi crude oil. In the meantime, investors will be watching closely on the OPEC meeting of June 5, where a discussion for lifting economic sanctions from Iran this summer will be discussed.
Pivot: 58.5
Support: 57.7; 56.3; 55.9
Resistance: 58.5; 58.9; 59.5
Scenario 1: Short positions below 58.5 with targets @ 57 & 56.3 in extension.
Scenario 2: Above 58.5 look for further upside with 58.9 & 59.5 as targets.
Comment: As long as 58.5 is resistance, likely decline to 57.
DOW JONES
U.S. stocks bounced back on Wednesday, after a major selloff on Tuesday's and despite the recent strength in the dollar, as gains in the Technology, Healthcare and Consumer Services supported prices. The Dow Jones Industrial Average added 0.67%, with the best performers of the session being Microsoft Corporation (NASDAQ:MSFT) which rose by 2.19%, Apple Inc (NASDAQ:AAPL) that gained 1.87% and Intel Corporation (NASDAQ:INTC) which was up by 1.83%. For today, investors will be focusing on jobless claims and pending home sales reports due later in the day.
Pivot: 17730
Support: 17730; 17360; 17040
Resistance: 18900; 19230; 19500
Scenario 1: Long positions above 17730 with targets @ 18900 & 19230 in extension.
Scenario 2: Below 17730 look for further downside with 17360 & 17040 as targets.
Comment: The RSI is mixed with a bullish bias.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.