The dollar gained strength against most major currencies on Thursday, after data from the U.S showed that the number of people filing for unemployment claims fell to a five-week low last week and sparked optimism over the strength of the job market. Another report showed that the U.S. service sector expanded at the fastest rate this month since September. Investors however, remain cautious as Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help tackle a potential bankruptcy next month. The Greek government is expected to present a detailed list of proposed reforms to its Eurozone partners by next Monday.
The euro posted a sharp drop against the dollar on Thursday, following solid data on U.S jobless claims, and as the threat of bankruptcy in Greece continues to create instability in the region. On Thursday, Greece said it would present a list of reform measures to its euro zone creditors by next Monday. It is expected that the new reforms will include measures that aim to raise tax revenues. For today the main focus will be on final data related to fourth quarter economic growth and a revised reading of the University of Michigan consumer sentiment index.
Pivot
1.0955
Support
1.0815
1.075
1.069
Resistance
1.0955
1.105
1.109
Scenario 1: Short positions below 1.0955 with targets @ 1.0815 & 1.075 in extension.
Scenario 2: Above 1.0955 look for further upside with 1.105 & 1.109 as targets.
Comment: The pair stands below its resistance and remains under pressure
Gold prices remained supported above the $1,200 level on Friday, after reaching as high as $1219 on our platform on Thursday. Demand in the metal as a safe haven asset rose, as Saudi Arabia and several of its regional allies initiated military action on rebel-held areas in Yemen. However, positive economic data on the U.S. employment and service sectors limited the metals' rise. For today gold traders will focus be on final data related to fourth quarter economic growth and a revised reading of the University of Michigan consumer sentiment index.
Pivot
1194
Support
1194
1185
1178.5
Resistance
1220
1224
1236
Scenario 1: Long positions above 1194 with targets @ 1220 & 1224 in extension.
Scenario 2: Below 1194 look for further downside with 1185 & 1178.5 as targets.
Comment: The RSI is mixed to bullish.
OIL/USD
Oil prices rose sharply around 5 percent on Thursday, posting the biggest daily gain in a month, as air strikes in Yemen by Saudi Arabia and its Gulf Arab allies raise worries that escalation of the Middle East battle could disrupt world crude supplies. However, for Friday the price of the fuel appears to be moving in negative territory, after several days of consecutive gains, as Goldman Sachs (NYSE:GS) said that strikes Yemen would have little effect on oil supplies as the country is only a small crude exporter and tankers could avoid passing its waters to reach their ports of destination. For today oil traders will be focusing on final data related to fourth quarter economic growth as an indication of demand for the fuel.
Pivot
49.5
Support
49.5
48.2
47
Resistance
52.5
53.5
54.8
Scenario 1: Long positions above 49.5 with targets @ 52.5 & 53.5 in extension.
Scenario 2: Below 49.5 look for further downside with 48.2 & 47 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
DOW/USD
U.S. stocks were lower after the close on Thursday, as geopolitical concerns weigh on all three main indices and as losses in the Utilities, Consumer Services and Consumer Goods sectors continue to add pressure on stocks. The Dow Jones Industrial Average ended the day with small losses. The worst performers of the Dow were American Express Company (NYSE:AXP) which fell 2.00% to trade at 78.51 at the close and Cisco Systems Inc (NASDAQ:CSCO) that declined by 1.35%. For today the main focus will be on final data related to fourth quarter economic growth and a revised reading of the University of Michigan consumer sentiment index.
Pivot
17620
Support
17620
17040
16330
Resistance
18290
18900
19200
Scenario 1: Long positions above 17620 with targets @ 18290 & 18900 in extension.
Scenario 2: Below 17620 look for further downside with 17040 & 16330 as targets.
Comment: The RSI is mixed and calls for caution.
Shares of Facebook (NASDAQ:FB) posted a new all-time high this week as analysts have great expectations for this brand. Facebook is finding itself in the middle of the mobile industry and showed some very strong potential in turning smartphone users into profit. For the year, analysts are expecting Facebook's profit to rise by 11%. Some pressure came in prices as European Union officials are launching investigations into internet commerce practices, to determine whether some businesses are limiting consumers' ability to shop online across EU national borders. Facebook has been accused by some in Europe of engaging in unfair practices.
Pivot
77
Support
77
73.3
68.45
Resistance
89.5
94.5
101.7
Scenario 1: Long positions above 77 with targets @ 89.5 & 94.5 in extension.
Scenario 2: Below 77 look for further downside with 73.3 & 68.45 as targets.
Comment: The RSI is bullish and calls for further advance. The validation of the ascending triangle calls for further upside.
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