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IForex Daily : December 19, 2014

Published 12/19/2014, 04:40 AM
Updated 09/16/2019, 09:25 AM

Global equities markets rallied on Thursday, with Wall Street surging nearly 2.5%, as investors influenced by policy comments from the U.S. Federal Reserve moved into riskier holdings. The Dow and S&P indexes had their biggest one-day percentage rise since Dec. 2011 and Jan. 2013 respectively. The Swiss National Bank's move to introduce negative deposit rates took the Franc to a two-year low against the Dollar. Oil fell, after having earlier gains, and the Dollar rose against major currencies accompanied by Gold, both supported by the Federal Reserve comments, all ahead the last day of the final full trading week of the year.

EUR/USD

The Dollar rose against major currencies for a second straight session on Thursday in the wake of the Federal Reserve's signals that it could hike rates soon and looser monetary policy might remain overseas.

EURUSD closed at $1.22894, down 0.38%, yesterday in our platform.

The Euro hit its lowest level against the Dollar since Dec. 8.

Today, expect markets to pay extra attention to the German PPI and France's business climate, and the comments of one FOMC member.

Pivot

1.232

Support

1.2245

1.219

1.215

Resistance

1.232

1.236

1.242

Scenario 1: Short positions below 1.232 with targets 1.2245 & 1.219 in extension.
Scenario 2: Above 1.232 look for further upside with 1.236 & 1.242 as targets.

Comment: The pair stands below its resistance and remains under pressure.

USD/CHF

The Dollar hit a 28-month high against the Franc after the Swiss National Bank said it would impose an interest rate of -0.25% on some large deposits held by investors in Francs, as it seeks to discourage buying of the currency as a safe haven. The SNB has said it won't hesitate to cut rates even more in case Franc appreciation persists.

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USDCHF finished at F0.9798, up 0.63% yesterday in our platform.

Today, expect the markets to pay extra attention to the comments of one FOMC member.

Pivot

0.975

Support

0.975

0.9715

0.966

Resistance

0.984

0.989

0.994

Scenario 1: Long positions above 0.975 with targets 0.984 & 0.989 in extension.

Scenario 2: Below 0.975 look for further downside with 0.9715 & 0.966 as targets.
Comment: The pair stands above its support and remains on the upside.

XAU/USD

Gold rose on Thursday after the Federal Reserve said it would take a patient approach toward raising interest rates, pushing up stock markets and commodities, though the metal pared early gains as the Dollar strengthened against a basket of currencies.

Spot Gold closed at $1,196.56, up 0.49% or $5.86, yesterday in our platform.

The Fed did a good job of slowly distancing themselves from the 'considerable' forward guidance, without upsetting local equity markets.

Today, expect the markets to pay attention to the comments of one FOMC member.

Pivot

1,180

Support

1,180

1,125

1,080

Resistance

1,255

1,297

1,350

Scenario 1: Long positions above 1180 with targets 1255 & 1297 in extension.
Scenario 2: Below 1180 look for further downside with 1125 & 1080 as targets.
Comment: The RSI is mixed.

OIL/USD

WTI Crude Oil prices resumed a months-long decline after Wednesday's rally, as asset manager Pimco said cheap Oil should help global economic growth next year.

WTI futures closed at $55.16, down 2.15%, or $1.21 in our platform yesterday.

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Oil had early gains from the lowest closing price since May 2009 amid the highest trading volatility in more than three years as Saudi Arabia's Oil minister said he's optimistic about global demand in the future.

Today, expect the markets to pay attention to the comments of one FOMC member.

Pivot

59.3

Support

53.94

52.5

50

Resistance

59.3

60.5

61.8

Scenario 1: Short positions below 59.3 with targets 53.94 & 52.5 in extension.

Scenario 2: Above 59.3 look for further upside with 60.5 & 61.8 as targets.

Comment: As long as 59.3 is resistance, likely decline to 53.94.

DOW/USD

The Dow Jones Industrial Average scored its best one-day gain since December 2011, as equity markets continued to celebrate the Federal Reserve's accommodative approach to monetary policy.

The Dow Future closed at 17,715.5, up 2.09% in our platform, yesterday.

Global shares also surged after a rise in Greek equities as the leader of the country's main opposition party said he was committed to keeping Greece in the Euro zone should his leftist party take power next year.

Today, expect markets to pay attention to the comments of one FOMC member.

Pivot

17,560

Support

17,560

17,400

17,300

Resistance

17,900

18,070

18,320

Scenario 1: Long positions above 17,560 with targets 17,900 & 18,070 in extension.
Scenario 2: Below 17,560 look for further downside with 17,400 & 17,300 as targets.
Comment: The immediate trend remains up and the momentum is strong.

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