The dollar fell against most major currencies on Wednesday, after data showed that manufacturing conditions in the New York area contracted unexpectedly in April and that U.S. industrial production dropped below expectations last month. In a report, the Federal Reserve Bank of New York said that its general business conditions index decreased to -1.2 this month from a reading of 6.9 in March. Analysts had expected the index to rise up to 7.0 in April. Data also showed that U.S. industrial production declined 0.6% last month below expectations for a drop of 0.3%. In the European front, European Central Bank President Mario Draghi spoke of recent signs of a recovery in the euro zone economy and clear evidence that the current policy measures appear to be effective. The ECB is monitoring inflation closely the ECB chief said, and it still expects inflation to rise back towards its target in 2016 and 2017.
The euro posted some small gains against the dollar on Wednesday, after a favorable outlook of the quantitative easing program by the European Central Bank and weak U.S. manufacturing data. Draghi appeared confident about the ECB's 60 billion a month quantitative easing program that launched last month and is scheduled to run through September, 2016 and said that the program has helped spur gradual economic recovery in the area. The ECB also left its benchmark interest rate unchanged at 0.05. In the meanwhile, weak data on U.S industrial production and Manufacturing add further pressure on the dollar. For today the U.S. is to release several reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.
Pivot
1.062
Support
1.062
1.057
1.052
Resistance
1.0785
1.083
1.086
Scenario 1: Long positions above 1.062 with targets @ 1.0785 & 1.083 in extension.
Scenario 2: Below 1.062 look for further downside with 1.057 & 1.052 as targets.
Comment: The pair stands above its support.
Gold prices closed in positive territory on Wednesday, as worries increase for a potential Greek bankruptcy.Investors anticipate a collapse in negotiations between Greece and its euro zone creditors, something that could increase demand for gold as a safe haven. Greek officials face a Monday deadline from the euro zone's working group to present a revised list of reform measures that aim to unlock a critical stimulus package. The financial lifeline is considered vital for Greece to avoid bankruptcy. For today the U.S. is to release several reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.
Pivot
1195
Support
1195
1189
1183.5
Resistance
1212.5
1216
1220
Scenario 1: Long positions above 1195 with targets @ 1212.5 & 1216 in extension.
Scenario 2: Below 1195 look for further downside with 1189 & 1183.5 as targets.
Comment: The RSI is mixed.
OIL/USD
West Texas Intermediate oil prices rose to the highest levels of the year on Wednesday, after the U.S government report on inventories showed a rise below expectations last week. The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 1.3 million barrels in the week ended April 10, below expectations for an increase of 4.1 million barrels. There is rising speculation in the market, that U.S. oil production has peaked and may start falling in the coming months, something that provides significant support in prices and signals a potential beginning of recovery in prices.
Pivot
53.6
Support
53.6
51.45
50
Resistance
58
60
61.2
Scenario 1: Long positions above 53.6 with targets @ 58 & 60 in extension.
Scenario 2: Below 53.6 look for further downside with 51.45 & 50 as targets.
Comment: The RSI is supported by a rising trend line.
DOW JONES
U.S. stocks closed higher on Wednesday, as gains in the Oil & Gas, Basic Materials and Technology sectors supported the main U.S indices and speculation that upcoming first-quarter earnings reports might not be quite as weak as previously thought. Crude oil surged to its highest level on the year creating widespread gains in the energy sector, while stocks on the Dow Jones Industrial Average closed in the green for the fifth time in six sessions. Intel Corporation (NASDAQ:INTC) finished as the top performer on the Dow, after analysts worries concerning the tech giant's first quarter earnings were waived. For today the U.S. is to release several reports, including jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.
Pivot
17585
Support
17585
17040
16330
Resistance
18290
18900
19200
Scenario 1: Long positions above 17585 with targets @ 18290 & 18900 in extension.
Scenario 2: Below 17585 look for further downside with 17040 & 16330 as targets.
Comment: The RSI is bullish and calls for further advance.
The European Union accused Google (NASDAQ:GOOGL) on Wednesday for cheating consumers and competitors by distorting Web search results to favor its own shopping services, after a five-year investigation that could change the rules for business online. It also started another antitrust investigation into the Android mobile operating system, a key element in Google's strategy to maintain revenues from online advertising. Analysts said the EU charges were unlikely to hurt Google's evaluation because it only reflected the regulatory risk of the company. Google rejected the charges. Its shares closed slightly higher on Wednesday
Pivot
553
Support
527.5
522
516
Resistance
553
562
573
Scenario 1: Short positions below 553 with targets @ 527.5 & 522 in extension.
Scenario 2: Above 553 look for further upside with 562 & 573 as targets.
Comment: The RSI is bearish and calls for further downside.