most major currencies on Tuesday, after data showed that new home sales surged by 2,2% reaching the highest level since 2008 and despite the fact that manufacturing growth slowed again in June for the third straight month, falling to 53.4, its slowest pace since October 2013. Meanwhile, total U.S. durable goods orders, declined by 1.8% last month, below forecasts for 0.6% decrease. The dollar received further support from Fed governor Jerome Powell who said there is a 50/50 chance that a hike could occur at the FOMC's September meeting, followed potentially by another rate hike in December. Ongoing uncertainty arising from developments in Greek debt talks continues to pressure the single currency, while the proposals made from the Greek government brought sharp reactions from the Greek government and opposition who criticized the plan. For today, investors will be focusing on the the German Ifo index of business climate while the U.S. is to release revised data on first quarter economic growth.
The euro posted its biggest drop against the dollar in months on Tuesday, as uncertainty over a potential deal in Greek Debt negotiations creates a cautious mood for investors causing them to step away from "buy" deals on the EUR/USD. In addition, hawkish comments from Fed governor Jerome Powell on the timing of the Fed's interest rate combined with surging new home sales provided a significant boost on the dollar overshadowing the weakness in manufacturing and total durable goods orders in the U.S. For today, investors will be focusing on the the German Ifo index of business climate while the U.S. is to release revised data on first quarter economic growth.
Pivot: 1.125
Support: 1.111; 1.108; 1.105
Resistance: 1.125; 1.1295; 1.135
Scenario 1: Short positions below 1.125 with targets @ 1.111 & 1.108 in extension.
Scenario 2: Above 1.125 look for further upside with 1.1295 & 1.135 as targets.
Comment: As long as 1.125 is resistance, expect a return to 1.111.
OIL/USD
Crude oil prices rose on Tuesday, on hopes for stronger than expected U.S. crude demand, after the American Petroleum Institute reported that crude inventories fell by 3.2 million barrels for the week ending June 19 when analysts forecast a 2.3 million-barrel decline. In addition, Tuesday's decision by Iran's parliament to pass a bill banning access for U.N. inspectors to its military sites and scientists created doubts over the possibility of an agreement regarding Iran's nuclear program. This eased concerns of increased crude oil supply and provided support to prices. On Wednesday, the more closely-watched figures from the U.S. Department of Energy are due to be released.
Pivot: 56
Support: 56; 47; 42
Resistance: 64; 70; 77
Scenario 1: Long positions above 56 with targets @ 64 & 70 in extension.
Scenario 2: Below 56 look for further downside with 47 & 42 as targets.
Comment: The RSI is mixed with a bullish bias.
S&P 500
The main U.S. stock indices ended Tuesday slightly higher, on hope that a deal to resolve Greece's debt problems could be reached by the weekend and amid a continuing rise in financial stocks. On the S&P 500, five out of 10 sectors ended the day in positive territory, with Telecommunications and Energy sectors leading the rise. The top performer of the S&P 500 was Freeport-McMoran Copper & Gold Inc (NYSE:FCX) one of the world's largest metal producers, gaining 3,79% and bringing the index even closer to its all-time high. For today, investors will be focusing on U.S. revised data on first quarter economic growth.
Pivot: 2116
Support: 2116; 2105; 2088
Resistance: 2135; 2144; 2152
Scenario 1: Long positions above 2116 with targets @ 2135 & 2144 in extension.
Scenario 2: Below 2116 look for further downside with 2105 & 2088 as targets.
Comment: The immediate trend remains up and the momentum is strong.
Facebook (NASDAQ:FB) was the best performer on the NASDAQ on Tuesday bringing the index to a record close for the second time this week. The social network managed to surpass Walmart (NYSE:WMT) in market value just three years after going public, entering the top 10 list of the highest-valued companies in the Standard & Poor's 500. Facebook is now worth nearly $240 billion dollars compared to Walmart's $234 billion.
Pivot: 77
Support: 77; 73.3; 70.35
Resistance: 86.2; 89.5; 94.5
Scenario 1: Long positions above 77 with targets @ 86.2 & 89.5 in extension.
Scenario 2: Below 77 look for further downside with 73.3 & 70.35 as targets.
Comment: The RSI is bullish and calls for further upside.