European stocks hit seven-year highs on Friday, continuing a rally ignited by the European Central Bank's plan for massive regional economic stimuli that also knocked the Euro to 11-year lows. Wall Street mostly fell on soft corporate earnings news. Oil prices were supported by hopes for a boost to global growth from the ECB's move, though the death of Saudi Arabia's King Abdullah pressured the crude to a 6-year low as it added to uncertainty over the plans of the World's biggest crude exporter. Gold fell on Friday with a strong Dollar and as markets digested the mixed implications of an ECB plan to pump about one trillion Euros into the euro zone's declining economy. The highlight this week is the Fed's FOMC announcement on Wednesday.
The Euro fell to fresh 11-year lows against the Dollar on Friday following the ECB's announcement on Thursday that it would pump a trillion Euros into the Euro zone economy to revive declining growth and erase deflation.
EURUSD closed at $1.12093, down 1.21%, in our platform, Friday.
The Euro lost over 1% against the U.S. currency and fell below $1.12 for the first time since September 2003 after the ECB unveiled a bond-buying program. The Greek election during the weekend is on focus.
Today, expect the market to move with the German ifo survey and to pay extra attention to the Dallas Fed management survey.
Pivot
1.1315
Support
1.11
1.099
1.0845
Resistance
1.1315
1.1395
1.146
Scenario 1: Short positions below 1.1315 with targets 1.11 & 1.099 in extension.
Scenario 2: Above 1.1315 look for further upside with 1.1395 & 1.146 as targets.
Comment: The pair stands below its resistance and remains under pressure.
The Euro also hit a 16-month trough against the Yen below Y131 on Friday, following the European Central Bank's announcement on Thursday.
EURJPY finished at Y132.066, down 1.95% in our platform, Friday.
Today, expect the market to move with the German ifo survey.
Pivot
133.2
Support
129.85
128.85
127.8
Resistance
133.2
134.2
135.1
Scenario 1: Short positions below 133.2 with targets 129.85 & 128.85 in extension.
Scenario 2: Above 133.2 look for further upside with 134.2 & 135.1 as targets.
Comment: As long as 133.2 is resistance, look for choppy price action with a bearish bias.
Gold fell on Friday as the Dollar rose and markets digested the mixed implications of a European Central Bank plan to pump about one trillion Euros into the Euro zone's declining economy.
Spot Gold closed at $1,294, down 0.52% or $6.79 in our platform, Friday.
Traders are likely to focus on the outcome of the elections in Greece and the Federal Open Market Committee policy meeting for clues on the wider economic environment and when U.S. interest rates might rise.
Today, expect the market to pay extra attention to the Dallas Fed manufacturing survey.
Pivot
1,279
Support
1,279
1,271.8
1,264
Resistance
1,308
1,317
1,325
Scenario 1: Long positions above 1,279 with targets 1,308 & 1,317 in extension.
Scenario 2: Below 1,279 look for further downside with 1,271.8 & 1,264 as targets.
Comment: A support base at 1,279 has formed and has allowed for a temporary stabilisation.
OIL/USD
WTI Crude Oil fell to the lowest in almost six years on speculation the death of the King of Saudi Arabia won't signal any change in strategy for the World's largest crude exporter.
WTI futures closed at $45.49, down 3.83% or $1.81 in our platform, Friday.
WTI Oil futures fell, reversing an initial gain as the successor to the Saudi throne, said he would maintain his predecessor's policies and the kingdom will not cut production to support prices because other producers would fill in the gap. U.S. Crude inventories rose the most since 2001 last week, according to a government report on Thursday.
Today, expect the market to pay extra attention to the Dallas Fed manufacturing survey.
Pivot
46.7
Support
43.7
42.6
41.4
Resistance
46.7
47.8
49.1
Scenario 1: Short positions below 46.7 with targets 43.7 & 42.6 in extension.
Scenario 2: Above 46.7 look for further upside with 47.8 & 49.1 as targets.
Comment: As long as 46.7 is resistance, likely decline to 43.7.
DOW/USD
U.S. stocks ended mostly lower Friday, breaking a four-day winning streak, but equities maintained solid weekly gains thanks to Thursday's advance, when the European Central Bank unveiled fresh stimulus measures.
The Dow Future closed at 17,607, down 0.72% in our platform, Friday.
U.S. investors, were considerably more restrained as they weighed corporate earnings and existing-home sales data.
Today, expect the market to pay extra attention to the Dallas Fed manufacturing survey, and the earnings of Microsoft Corp.
Pivot
17,865
Support
17,865
17,700
17,560
Resistance
18,070
18,220
18,320
Scenario 1: Long positions above 17,865 with targets 18,070 & 18,220 in extension.
Scenario 2: Below 17,865 look for further downside with 17,700 & 17,560 as targets.
Comment: The RSI lacks downward momentum.