The dollar regained ground on Friday after indications that the U.S. economy may be stabilizing after a recent loss of momentum. Reports on Friday showed that activity in the manufacturing sector was stable in April, after slowing in the five previous months, while consumer sentiment improved to its highest level since January last month. In addition, jobless claims on Thursday fell to 15-year lows. In the week ahead, investors will be focusing on Friday's U.S. nonfarm payrolls report, for a fresh indication on the strength of the economic recovery. Markets in Japan and in the U.K. are to remain closed for today while the euro area is to produce revised data on manufacturing activity and the U.S. is to publish figures on factory orders..
The euro retreated from two-month highs against the dollar on Friday after reports showed that the U.S. economy may be stabilizing after recent weak data. The Institute for Supply Management reported that activity in the manufacturing sector was stable in April, after slowing in the five previous months..Another report showed that U.S. consumer sentiment rose in April to its highest level since January.The dollar had received a boost after a report on Thursday showed that the number of Americans filing new claims for jobless benefits fell to a 15-year low of 262,000. For today, investors will be focusing on revised data on manufacturing activity from the euro zone while later in the day, the U.S. is to publish figures on factory orders.
Pivot
1.1295
Support
1.113
1.107
1.145
Resistance
1.1295
1.138
1.0945
Scenario 1: Short positions below 1.1295 with targets @ 1.113 & 1.107 in extension.
Scenario 2: Above 1.1295 look for further upsode with 1.138 & 1.145 as targets.
Comment: The pair has broken below a rising trend line and remains under pressure
Following solid manufacturing data, positive signs for employment and the recent recovery in the dollar, gold prices fell at a six-week low on Friday. For today, the metal posted a slight recovery despite the weak manufacturing data from China and ahead of today's factory orders from the U.S. In the week ahead, gold traders will be focusing on Friday's U.S. nonfarm payrolls report.
Pivot
1169
Support
1199
1207.5
1215
Resistance
1169
1160
1153
Scenario 1: Long positions above 1169 with targets @ 1199 & 1207.5 in extension.
Scenario 2: Below 1169 look for further downside with 1160 & 1153 as targets.
Comment: The RSI is mixed to bullish.
OIL/USD
Crude oil prices rose to the highest levels of the year on Friday and then retreated as investors cashed out of the market to lock in gains from the recent rise. For the week, prices increased, posting the fifth weekly gain in the past six weeks. Prices were mainly supported by rising expectations that production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil. The U.S. Energy Information Administration said on Wednesday that supplies at Cushing, Oklahoma, a key delivery point for crude oil, fell for the first time in almost six months last week adding further support on prices. For this week, traders will be focusing on industrial and government inventory data on Tuesday and Wednesday.
Pivot
58.3
Support
58.3
57.85
57.2
Resistance
59.9
60.5
61.5
Scenario 1: Long positions above 58.3 with targets @ 59.9 & 60.5 in extension.
Scenario 2: Below 58.3 look for further downside with 57.85 & 57.2 as targets.
Comment: The RSI is mixed to bullish.
The U.S. stock market has not shown a certain trend recently, something that could be cleared out by next week's NFP report which as the weather improves could confirm that weakness in economic data and stock prices is waning. Earnings have exceeded expectations, however, revenue has fallen, with the energy sector posting the biggest drop. The S&P 500 is about 1 percent away from the record highs reached last week as investors buy back beaten-down shares after signs of a recovery in the economy. Apple (NASDAQ:AAPL) provided strong support to indices by rising almost 3% on Friday. In the week ahead, investors will be focusing on Friday's U.S. nonfarm payrolls report.
Pivot
2072
Support
2072
2063
2045
Resistance
2116
2125
2144
Scenario 1: Long positions above 2072 with targets @ 2116 & 2125 in extension.
Scenario 2: Below 2072 look for further downside with 2063 & 2045 as targets.
Comment: The RSI is above its neutrality area at 50%.
MCDONALDS
McDonald's (NYSE:MCD) new Chief Executive Steve Easterbrook is set to unveil his plan on Monday to revive growth as the world's largest hamburger chain struggles to win back consumers and investors. Easterbrook has described himself as an "internal activist" willing to challenge the status quo to remake McDonald's as a "modern, progressive burger company." Most financial analysts who cover McDonald's are on the sidelines. Twenty have "hold" ratings on the stock, one is at "sell" and seven are at "buy" or higher, according to Thomson Reuters data.
