The dollar continues to recover against most currencies ending slightly higher in a quiet trading session on Tuesday. However, sentiment on the dollar remains vulnerable after a recent batch of weak economic indicators, that lowered expectations for a mid-year increase of U.S. interest rates. The euro remained under pressure after the ZEW Centre for Economic Research said that German economic sentiment declined by 1.5 points to 53.3 this month from March's reading of 54.8 and below expectations for a 55.3 reading. For the week ahead, investors are focusing on a key meeting of euro zone finance ministers in Latvia on Friday where Greece prime minister Alexis Tsipras is expected to present a revised list of reform measures that could unlock a vital financial lifeline to the country. The effort could raise about €2 billion.
EUR/USD fell slightly on Tuesday in quiet trading session on Tuesday, as worries of a continuous instability that stems from the Greek debt crisis weighs on the euro. The euro remained under pressure after the ZEW Centre for Economic Research said that German economic sentiment declined by 1.5 points to 53.3 this month from March's reading of 54.8 and below expectations for a 55.3 reading. On Tuesday, Jeroen Dijisselbloem, the head of the euro group insisted that Greece must meet all of its obligations regarding a payment it owes of €3.45 billion to the ECB for bonds purchased in 2012 but first, Greece must meet its obligations to the IMF totaling more than €1.0773 billion. For today The U.S. is to release data on existing home sales.
Pivot
1.077
Support
1.0705
1.0655
1.062
Resistance
1.077
1.082
1.085
Scenario 1: Short positions below 1.077 with targets @ 1.0705 & 1.0655 in extension.
Scenario 2: Above 1.077 look for further upside with 1.082 & 1.085 as targets.
Comment: As long as the resistance at 1.077 is not surpassed, the risk of the break below 1.0705 remains high.
Gold prices moved up on Tuesday reversing some of their recent losses, as continuous instability in the markets caused by a potential Greek default remains in focus and increases demand the metal as a safe haven asset and as an alternative investment. Gold has been moving sideways, trading within a range between $1223 and $1183 in April, as uncertainty over Greece coupled with a potential increase in interest rates prevent the market from forming any trend. For today The U.S. is to release data on existing home sales.
Pivot
1199
Support
1199
1194.5
1192
Resistance
1209
1212.5
1216
Scenario 1: Long positions above 1199 with targets @ 1209 & 1212.5 in extension.
Scenario 2: Below 1199 look for further downside with 1194.5 & 1192 as targets.
Comment: The RSI is mixed to bullish.
OIL/USD
Crude oil prices fell on Tuesday, after the API industry data on inventories showed a solid buildup. The index showed a rise in inventories by 5,5 million barrels last week setting a negative tone for demand in today's closely watched government data from the Energy Information Administration. The drop in prices was limited as in the Middle East, Iran president Hassan Rouhani called for an immediate cease fire of Saudi Arabian-led airstrikes on Yemen, as a new round of attacks hit the Yemeni capital of Sana on Tuesday.
Pivot
47
Support
47
40
33
Resistance
64
70
77
Scenario 1: Long positions above 47 with targets @ 64 & 70 in extension.
Scenario 2: Below 47 look for further downside with 40 & 33 as targets.
Comment: The RSI advocates for further upside.
DOW JONES
U.S. stocks showed mixed earnings results on Tuesday, with the Dow ending lower after some weak earnings reports. Travelers, DuPont (NYSE:DD) and IBM (NYSE:IBM) shares added some strong pressure on the index as DuPont reported lower sales in all of its businesses and said a strong dollar would take a toll on its full-year earnings. IBM also mentioned currency effects when it reported a drop in revenue late on Monday. For this week, Investors will try to estimate how much the recent rise in the dollar has hurt U.S. multinationals, including technology companies like Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) that are very active overseas and are expected to report their earnings this week.
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 supported by a bullish trend line.
APPLE
Apple (NASDAQ:AAPL) stock price is fluctuating around the $127 level, however, given the tech-giants impressive history and recent product releases, some analysts are convinced that the stock is headed for a rise over the course of the next 12 months. Bullish investors are divided into those who support that the Apple Watch is going to play a major role in the company's growth and those who expect better-than-expected iPhone 6 sales to be the core driving factor for a potential rise in Apple's stock price. Apple is due to announce its quarterly earnings next week.
Pivot
165
Support
125.9
124.3
123.1
Resistance
129.6
131.4
133.6
Scenario 1: Long positions above 125.9 with targets @ 129.6 & 131.4 in extension.
Scenario 2: Below 125.9 look for further downside with 124.3 & 123.1 as targets.
Comment: The RSI is bullish and calls for further upside...