The dollar fell against most major currencies on Friday as weakness in the rest of the economy finally caught up with the job market last month. The Labor Department showed that the U.S. economy added 126,000 new jobs in March, less than half of February's gain and the smallest increase since December 2013. Economists had forecast jobs growth of 245,000 last month. It is important to note that the April 3 employment data followed other statistics from retail sales to capital goods orders that also pointed to a slowdown in the first quarter. Last month, the Fed stated that the first rate hike could come as soon as June, but added that continued improvement in labor markets would be a key factor it would consider. This implies that a slowing labor market could prompt the Federal Reserve to delay further a planned increase in interest rates. Fed minutes due Wednesday may give more clarity on the central bank's approach. At their last meeting, policy makers revised down interest-rate projections, even as they removed a commitment to being "patient" on the timing of rate increases. On Monday, markets in Australia, New Zealand, China, Europe and the U.K. will remain closed for holidays
The euro gained ground against the dollar on Friday after data showing that the U.S. economy added far fewer jobs than expected last month prompted investors to push back expectations for higher interest rates. The drop in the dollar came after surprisingly weak employment data from the U.S that retreated to the lowest increase since December 2013. The data added to concerns over the outlook for economic growth after other recent economic data also indicated a slowdown at the beginning of the year. In the week ahead, markets outside the U.S. will remain closed on Monday. For Monday, Spain is to release its monthly unemployment report while later in the day, the Institute of Supply Management is to release data on U.S. service sector activity.
Pivot
1.08
Support
1.08
1.075
1.071
Resistance
1.095
1.102
1.105
Scenario 1: Long positions above 1.08 with targets @ 1.095 & 1.102 in extension.
Scenario 2: Below 1.08 look for further downside with 1.075 & 1.071 as targets.
Comment: The RSI broke above a declining trend line.
Gold prices gained on Monday as last week's U.S. jobs data bring back uncertainty over the strength of the U.S economy. Last week, the Labor Department reported that the U.S. economy added 126,000 new jobs in March, less than half of February's gain and the smallest increase since December 2013. The surprisingly weak report added to concerns over the outlook for economic growth and is something that could prompt the Federal Reserve to reconsider a planned increase in interest rates. For Monday, gold traders will be focusing on the Institute of Supply Management data on service sector activity from the U.S.
Pivot
1191
Support
1191
1178.3
1168.5
Resistance
1212.75
1220
1224
Scenario 1: Long positions above 1191 with targets @ 1212.75 & 1220 in extension.
Scenario 2: Below 1191 look for further downside with 1178.3 & 1168.5 as targets.
Comment: The RSI is below its neutrality area at 50% but reversing up.
OIL/USD
Oil prices climbed more than $1 a barrel on Monday, after Saudi Arabia raised prices for crude sales to Asia for a second month, signaling better demand in the region and as weakness in the dollar provides positive demand for the fuel. In addition, China's imports from Iran, one of OPEC's main producers, are set to rise from August as a Chinese state trader has signed a deal with the National Iranian Oil Company. Markets will be focusing on inventory data from the U.S on Wednesday for further indications on demand for the fuel.
Pivot
50.45
Support
48.1
47
45.3
Resistance
50.45
51.15
52.05
Scenario 1: Short positions below 50.45 with targets @ 48.1 & 47 in extension.
Scenario 2: Above 50.45 look for further upside with 51.15 & 52.05 as targets.
Comment: As long as 50.45 is resistance, look for choppy price action with a bearish bias.
Facebook (NASDAQ:FB) company stock price received some strong bullish signals after posting a drop last week, as analysts from Citigroup Inc (NYSE:C). updated their 12-month price targets for the stock by 18% to $97 from $91. The hike came after data from the F8 Facebook Developer Conference was analyzed, and showed significant revenue growth potential in video advertising, e-commerce, as well as FB's newly launched payments feature that gives users a convenient and safe way to send and receive money between friends. Additionally, advancements in FB's photo-sharing app Instagram and its messaging portal WhatsApp which according to Citigroup analyst comments, are on their way to become billion dollar businesses.
Pivot
77
Support
77
73.3
68.45
Resistance
89.5
94.5
101.7
Scenario 1: Long positions above 77 with targets @ 89.5 & 94.5 in extension.
Scenario 2: Below 77 look for further downside with 73.3 & 68.45 as targets.
Comment: The RSI is bullish and calls for further advance. The validation of the ascending triangle calls for further upside.