The dollar was hit after weak data on Friday showed that the U.S. economy grew less than forecast in the fourth quarter and consumer sentiment dropped lower this month. The Commerce Department reported that the U.S. economy grew at an annual rate of 2.2% in the fourth quarter, below forecasts for 2.4% growth. Other data showed that the University of Michigan's consumer sentiment index dropped to 93.0 this month from a final reading of 95.4 in February. In a speech on Friday, president of the Fed Janet Yellen said a rate hike may take place later this year, but added that weakening inflation pressures could force the Fed to delay. In the euro zone, Greece put forward new reform plans for approval, in order to achieve a bailout extension. Officials from the European Union, the International Monetary Fund and the European Central Bank are going to examine the measures after earlier proposals were not accepted.
The euro ended the week higher against the dollar on Friday, following weak U.S. economic reports on economic growth and consumer sentiment while cautious comments by the Federal Reserve Chair Janet Yellen added further pressure on the dollar. In her comments Yellen emphasized that the Fed will proceed cautiously to avoid tightening too quickly. For today, Germany and Spain are to release preliminary data on consumer price inflation while the U.S. is to release reports on personal spending and pending home sales.
Pivot
1.0795
Support
1.0795
1.075
1.069
Resistance
1.0955
1.105
1.1115
Scenario 1: Long positions above 1.0795 with targets @ 1.0955 & 1.105 in extension.
Scenario 2: Below 1.0795 look for further downside with 1.075 & 1.069 as targets.
Comment: The pair has validated a bullish flag and remains on the upside.
Gold prices are trading in negative territory on Monday despite signals from the Federal Reserve that suggest a rate hike may happen later than expected this year. The metal received strong support as Saudi Arabia launched air strikes in Yemen, however, the recent rise above $1200 prompted investors to lock in gains. The metal showed little reaction after Federal Reserve Chair Janet Yellen gave a cautious note on interest rates. For today, gold traders will be focusing on personal spending and pending home sales reports from the U.S.
Pivot
1199
Support
1178.5
1169
1160
Resistance
1190.5
1185
1179
Scenario 1: Short positions below 1199 with targets @ 1190.5 & 1185 in extension.
Scenario 2: Above 1199 look for further upside with 1206.5 & 1213 as targets.
Comment: As long as 1199 is resistance, likely decline to 1190.5.
OIL/USD
Crude oil futures dropped sharply on Friday giving back most of the recent gains, as weak growth data from the U.S put negative pressures on demand. Additional pressure came as worries faded that turmoil in Yemen could disrupt oil supply as oil tankers could avoid passing the Bab el-Mandeb Strait to reach their ports of destination. Market attention is focused towards inventory data from the U.S, while investors will also be watching closely on geopolitical events in Yemen.
Pivot
49.5
Support
47
45.3
44
Resistance
49.5
51.15
52.5
Scenario 1: Short positions below 49.5 with targets @ 47 & 45.3 in extension.
Scenario 2: Above 49.5 look for further upside with 51.15 & 52.5 as targets.
Comment: As long as 49.5 is resistance, likely decline to 47.
DOW/USD
The Dow Jones closed in positive territory on Friday, halting four-days of losses, as news of mergers in the semiconductor sector gave a boost to technology stocks. The top performer on the Dow was Intel Corporation (NASDAQ:INTC), which gained more than 6% after the company has put in a bid to purchase California-based Altera Corporation (NASDAQ:ALTR). The Dow Jones Industrial Average gained, but still remains in negative for the year. Yellen's comments signaling that an interest rate hike may be delayed provided some support on all the main U.S indices. For today, the U.S. is to release reports on personal spending and pending home sales.
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.
INTEL
Intel Corporation (NASDAQ:INTC) is in talks to buy Altera Corporation (NASDAQ:ALTR), another chipmaker company in a deal that will probably exceed $10 billion, according to sources, making this Intel's biggest purchase ever and the latest merger in the sector. The acquisition of Altera, which makes programmable chips widely used in cellphone towers, the military and other industrial applications, highlights the company's determination to expand into new markets. Following the news Intel shares gained by approximately 6 percent reaching over $32.
