Despite the recent dovish bent by the Federal Reserve, it appears that the dollar is gaining traction as the ECB and BOJ prepare to further ease monetary policy in an effort to drive down the value of their currencies and increase export growth. The Fed speak from current and non-current voting members has been mixed with Fed's Bullard and, to a lesser extent, Lacker tilting toward a hawkish tone. Bullard has discussed the need to normalize rates sooner rather than later to avoid 50 basis points and 75 basis point hikes when inflation gets out of control. This seems farfetched at the moment, with inflation rising 1.8% year over year for core CPI.
The EUR/USD sliced through trend line support and appears to be poised to test the 50-day moving average at 1.1125. Resistance on the currency pair is seen near the 20-day moving average at 1.1245. Momentum on the currency pair turned negative with the MACD (moving average convergence divergence) index generating a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.
Gold
Gold prices are slightly lower on Tuesday after breaking out on Friday and continuing to remain buoyed this week. Support on the yellow metal is seen near the 20-day moving average at 1,123 and then again at 1,116. Resistance is seen near the recent highs at 1,142. Momentum is positive with the MACD printing in positive territory with an upward sloping trajectory.
NASDAQ 100
The Nasdaq closed higher on Monday but futures are pointing to a lower open on Tuesday. Prices were unable to recapture the 200-day moving average at 4,385. Additional resistance is seen near the 50-day moving average at 4435. Momentum is positive with the MACD printing in positive territory with an upward sloping trajectory.
Apple (NASDAQ:AAPL)
Apple moved higher on Monday but appears to be lower in the pre-market. Prices are under pressure despite news on Monday that the company was moving full steam ahead with their release of an electric car in 2019. Momentum on the technology stock is positive with the MACD printing in positive territory. Resistance is seen near the 50-day moving average at 116.75.
