U.S. stocks ended the week posting their best 3 days since 2011, as Oil strongly gained, when investors closed the last full week of trading in 2014 on an optimistic note after the Federal Reserve Wednesday's policy statement. The U.S. Dollar hit its highest level against major currencies in over 8-1/2 years on Friday, with the Euro falling to a 28-month low against the U.S. currency, driven by the prospect of bond buying by the European Central Bank, although worries have emerged that Europe's money-printing plans could come with a number of restrictive strings attached. For example, the ECB may require countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying it embarks on next year.
The Dollar hit its highest level against major currencies in over 8-1/2 years on Friday on diverging monetary policy between the Federal Reserve and other major central banks, and bullish Dollar positions heading into the end of the year.
EURUSD closed at $1.22256, down 0.52%, Friday in our platform.
Today, expect markets to move with the U.S. Existing home sales, and to pay extra attention to the EU consumer confidence.
Pivot
1.2305
Support
1.219
1.215
1.21
Resistance
1.2305
1.236
1.242
Scenario 1: Short positions below 1.2305 with targets 1.219 & 1.215 in extension.
Scenario 2: Above 1.2305 look for further upside with 1.236 & 1.242 as targets.
Comment: The pair stands below its resistance.
The Pound fell against the Dollar in quiet trading on Friday after investors digested the week's U.S. data and the Federal Reserve's reassuring language and bet that rate hikes are coming within less than a year.
GBPUSD finished at $1.5633, down 0.21% Friday in our platform.
Today, expect the markets to move with the U.S. Existing home sales.
Pivot
1.5615
Support
1.5615
1.558
1.55
Resistance
1.5715
1.5765
1.5805
Scenario 1: Long positions above 1.5615 with targets 1.5715 & 1.5765 in extension.
Scenario 2: Below 1.5615 look for further downside with 1.558 & 1.555 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Gold prices lost Friday, suffering a 2.2% drop for the week, the first down-side in three weeks, staying under the closely-watched level of $1,200.
Spot Gold closed at $1,195.43, down 0.09% or $1.12, Friday in our platform.
Analysts have said Gold was hurt this week by factors such as crude Oil losing ground and the Dollar gaining against rivals. Oil is the world's most-traded commodity, so other commodities can move in sympathy with it, and a rallying Dollar hurts commodities like Gold that are traded in the U.S. currency, since holders of other currencies then have to pay more. Big gains by the major stock indexes also have been resisting the safe haven.
Today, expect the markets to move with the U.S. Existing home sales.
Pivot
1,207
Support
1,192
1,183
1,177
Resistance
1,207
1,214
1,223.5
Scenario 1: Short positions below 1,207 with targets 1,192 & 1,183 in extension.
Scenario 2: Above 1,207 look for further upside with 1,214 & 1,223.5 as targets.
Comment: As long as 1,207 is resistance, expect a return to 1,192.
OIL/USD
WTI Crude Oil prices surged from a five-year low at the end of last week after Saudi Arabia Oil Minister said the slump in prices was temporary.
WTI futures closed at $57.96, up 5.10%, or $2.81 in our platform Friday.
Money managers are the most bullish since August about the slide being over. The net-long position in WTI rose on futures and options in the week ended Dec. 16, the most since mid-August, U.S. Commodity Futures Trading Commission data show.
Today, expect the markets to pay extra attention to the U.S. Existing home sales.
Pivot
53.95
Support
53.95
52.5
50
Resistance
59.3
60.5
61.9
Scenario 1: Long positions above 53.95 with targets 59.3 & 60.5 in extension.
Scenario 2: Below 53.95 look for further downside with 52.5 & 50 as targets.
Comment: The RSI is mixed to bullish.
DOW/USD
The U.S. stock market ended a turbulent week with the biggest weekly gain since October, and its best 3 days since 2011.
The Dow Future closed at 17,767.5, up 0.28% in our platform, Friday.
On Friday, calmer currencies and commodities markets provided reasons to bring up prices, especially in the beaten-down energy and materials sectors.
Today, expect markets to move with the U.S. Existing home sales.
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.