Daily Market Review: Crude Oil Slumps, US Markets Gain Slightly

Crude Oil Slumps by 1.69%

US Stock Market
Major indices gained slightly as consumer confidence in the US rose and as Apple’s debt sale led to gains in technology stocks. The S&P 500 closed at a new high, gaining by 0.25%; the NASDAQ gained by 0.66%; and the Dow Jones gained by 0.14%. Technically, the Dow Jones has retested the 14,700 support level and will likely continue moving towards 14,850. The NASDAQ is trading in an ascending channel and will likely continue moving towards the 2,900 resistance level.

Apple
Apple gained by 2.94% after the tech giant launched a $17 billion debt sale. Apple, the only US technology company without debt on its books, has announced a strategy change in order to fund a new program. Technically, according to the 4-hour chart, Apple has crossed above the Fibonacci retracement levels and is starting to trend higher. The next major resistance level is located at $460. Apple could retrace to the 437 support level before rising higher.
Apple - Last: 442.38

Resistance 445450458
Support 437430425


US Dollar (USD)
The US Dollar weakened versus most of the major currencies as stocks reached new highs and as investors continued to await news regarding the Federal Reserve’s meeting. CB Consumer Confidence came out stronger than expected, at 68.1 versus 61.4; the Chicago PMI came out weaker than expected, at 49.0 versus 52.5. Today’s ADP Non-Farm Employment Change is expected at 153K versus 158K previously, the ISM Manufacturing PMI at 51.1 versus 51.3 previously.

Gold
Gold rose slightly as gains in stocks lowered demand for safe haven assets, but investors still await the ECB’s Interest Rate decision and the release of Non-Farm Payrolls in the US. Technically, Gold is currently trading in a channel between the 1,464 support level and the 1,477 resistance level. Gold is currently located at the top of the trading channel; a break above the 1,480 resistance level could send Gold rallying towards 1,500. For the time being, Sell positions are preferred towards the bottom part of the channel.
Gold – Last: 1477

Resistance 148014831486
Support 147014651460


Crude Oil
Crude Oil prices declined by 1.69% after the European Unemployment Rate hit a record high of 12.1% and ahead of the release of the inventories report, the latter of which is expected to show a rise in Oil supply. Technically, Crude reached the 94.80 resistance level and, due to overbought RSI conditions, is now retracing towards the $92.50 support level.
Crude Oil – Last: 93.05

Resistance 93.9094.8095.50
Support 92.5092.0091.70


Euro (EUR)
The euro rose versus the major currencies despite an increase in the Unemployment Rate and a weaker than expected German Unemployment Change. The CPI Flash Estimate came out at 1.2% versus the expected 1.6%, fueling expectations that the ECB will cut the interest rate by 0.25% in order to spur growth. Technically, the EUR/USD has broken the channel limits of 1.30 and 1.31, and is now headed towards the 1.32 resistance level. The EUR/USD is nearing overbought conditions and could fall back to retest the 1.3100 support level. Today, International Workers’ Day, is a bank holiday in Europe. Low trading volume and irregular volatility are to be expected.
EUR/USD – Last: 1.3165

Resistance 1.32001.32501.3300
Support 1.31401.31001.3045


British Pound (GBP)
he Pound gained slightly versus the US Dollar as investors await news regarding the Federal Reserve’s meeting. Net Lending to Individuals came out at 0.9B, as expected, and the M4 Money Supply came out at -0.9%, weaker than the expected 0.4%. Technically, the trend for the GBP/USD remains bullish, but the pair is nearing overbought conditions (according to the RSI indicator). The MACD indicator is nearing the bearish cross of the Moving Averages, which could signal a retracement towards the 1.5450 support level. Today’s Manufacturing PMI is expected to come out at 48.6 versus 48.3 previously.
GBP/USD - Last: 1.5530

Resistance 1.55451.56101.5670
Support 1.54701.54251.5390