iFOREX Daily Analysis September 09, 2015
iFOREX | Sep 09, 2015 02:07AM ET
The dollar slipped lower against the other major currencies on Tuesday, amid mounting uncertainty over whether or not the Federal Reserve will raise interest rates at its meeting this month, after Friday's U.S. jobs report failed to provide much clarity.
Today major focus will be on: UK data on trade balance and industrial production; Bank of Canada’s and New Zealand’s rate statements, and API Weekly Crude Oil data.
While in the days ahead, investors’ attention will be shifted towards US jobless claims, European Union finance minister’s talks in Brussels and US data on producer prices and consumer sentiment.
EUR/USD
The Euro rose broadly on Tuesday, reversing territory late in the session, after the chief economist of the World Bank Kaushik Basu warned of the disastrous consequences a premature rate hike from the Federal Reserve could have on fledgling markets worldwide, pushing capital away from their economies and potentially creating sharp fluctuations in their currencies.
It came after officials from the International Monetary Fund issues similar warnings on the severe ramifications that could result from a rate hike by the Fed
Over the last month of trading, the euro is up by nearly 2.2% versus its American counterpart.
Pivot:1.123
Support:1.11151.10851.105
Resistance:1.1231.1261.1295
Scenario 1:Short positions below 1.123 with targets @ 1.1115 & 1.1085 in extension.
Scenario 2:Above 1.123 look for further upside with 1.126 & 1.1295 as targets.
Comment:The RSI is badly directed.
Gold
Gold inched up on Tuesday to snap a five-day losing streak, as continuing woes in the Chinese economy and the timing of a potential interest rate hike by the Federal Reserve remain in focus.
In China, its dollar denominated exports fell sharply by 5.5% on a year-over-year basis in August, exacerbating concerns about persisting weakness in the world's second-largest economy. Imports, meanwhile, tumbled 13.8% on a yearly basis, producing a trade surplus of $60.24 billion.
Gold, which is not attached to dividends or interest rates, is now struggling to compete with high-yield bearing assets in periods of rising rates.
Pivot:1126
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Support:1115.911101104
Resistance:11261130.71137
Scenario 1:Short positions below 1126 with targets @ 1115.9 & 1110 in extension.
Scenario 2:Above 1126 look for further upside with 1130.7 & 1137 as targets.
Comment:The RSI is mixed. Gold is moving sideways between its key resistance at 1126 and key support at 1115.9.
WTI Oil
Crude oil prices remained steady but at low levels in early Asian trading on Wednesday, as concerns remained that high global production was being met by increasingly slowing demand.
Oil prices have fallen almost 60% since June 2014 on a global supply glut, with prices seesawing in recent weeks, as concerns about a slowing Chinese economy caused turmoil in global stock markets, while production remained near record highs.
On the supply side, recent speculation that some producers were willing to cooperate in cutting output in support of prices was dealt a blow by Russia and Mexico this week, who both said they would not cut.
Today investor will focus on API Weekly Crude Oil data.
Pivot:44.2
Support:44.243.241.75
Resistance:47.2548.4549.2
Scenario 1:Long positions above 44.2 with targets @ 47.25 & 48.45 in extension.
Scenario 2:Below 44.2 look for further downside with 43.2 & 41.75 as targets.
Comment:The RSI is mixed with a bullish bias.
Dow Jones
U.S. stocks rose more than 2% on Tuesday, bouncing after steep losses last week and a China-fueled rebound in global equities.
Gains were broad-based and followed a three-day U.S. holiday weekend. All but one of the 10 major S&P sectors energy ended with gains.
Hopes for more stimulus measures from the Chinese government increased after data on Tuesday showed that China's imports shrank far more than expected in August, falling for the 10th straight month.
Pivot: 17570
Support: 15370 14765 14200
Resistance: 17570 18350 18650
Scenario 1: Short positions below 17570 with targets @ 15370 & 14765 in extension.
Scenario2: Above 17570 look for further upside with 18350 & 18650 as targets.
Comment: The RSI is below its neutrality area at 50%.
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