The dollar gained against most major currencies on Monday despite weak U.S. service sector data which lowered optimism over the strength of the U.S. economy. The Institute of Supply Management reported on Monday that its non-manufacturing purchasing managers' index fell to 56.9 in September when analysts had expected a drop to 57.5 for last month. The report came after weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and raised expectations that the initial rate hike by the Federal Reserve will take place in early 2016. The euro also received pressure by research group Markit which said earlier that Germany's services PMI fell to 54.1 in September from 54.3 in August, while France's services PMI rose to 51.9 from 51.2. Markit's services PMI for the entire euro zone fell to 53.7 last month from 54.0 in August. For today, Markets in China are to remain closed for a holiday while Germany is to publish a report on factory orders. Meanwhile, the Euro group of finance ministers are to hold a second day of talks in Brussels. The U.S. and Canada are to report on their respective trade balances.
Later in the day, ECB President Mario Draghi is to speak at an event in Frankfurt.
The euro posted a slight drop against the dollar on Monday, halting a three-day winning streak, as disappointing service sector from the Eurozone overshadowed recent reports showing weakness in the U.S. economy. Weakness in the U.S. ISM non-manufacturing index failed to give a boost to the pair as it was dragged down by weakness in business activity and new orders. The currency pair traded between a low of 1.1174 and a high of 1.1289 before settling 0.24% lower for the day. For today, Germany is to publish a report on factory orders while the Eurogroup of finance ministers are to hold a second day of talks in Brussels. The U.S. and Canada are to report on their respective trade balances. Later in the day, ECB President Mario Draghi is to speak at an event in Frankfurt.
Pivot:1.1225
Support:1.11451.11151.108
Resistance:1.12251.1281.132
Scenario 1:Short positions below 1.1225 with targets @ 1.1145 & 1.1115 in extension.
Scenario 2:Above 1.1225 look for further upside with 1.128 & 1.132 as targets.
Comment:The RSI advocates for further decline.
WTI Oil
Crude oil prices rose sharply on Monday after reports that Russia is willing to meet with major oil producers to discuss a plan to combat crashing energy prices worldwide and on speculation that China will introduce more monetary stimulus measures to support its economy. The World Bank said on Monday it expects China to grow 7% this year. Later in the day, the commodity gave away some of the losses late in the session as investors locked profits from the recent rise. Prices remain under pressure as Saudi Arabia has cut prices over the weekend for November crude oil exported to Asia and the U.S. in an effort to regain market share from its top competitors. The American Petroleum Institute will release its U.S. crude oil inventories report for last week on late Tuesday to be followed by more closely-watched data from the U.S. Department of Energy on Wednesday.
Pivot:45.8
Support:45.845.244.3
Resistance:46.9547.3647.95
Scenario 1:Long positions above 45.8 with targets @ 46.95 & 47.36 in extension.
Scenario 2:Below 45.8 look for further downside with 45.2 & 44.3 as targets.
Comment:The RSI is mixed to bullish.
The S&P 500 clinched its longest winning streak this year as crude oil prices surged and boosted the energy sector. The benchmark index has gained more than 5% over the past five days after jumping nearly 2% on Monday. The Dow Jones Industrial Average gained 1.8% over the session, and Nasdaq climbed 1.6%. All 10 major S&P sectors closed higher with the energy sector being the best performer as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Kinder Morgan (NYSE:KMI), ConocoPhillips (NYSE:COP) and Royal Dutch Shell (LONDON:RDSa) all closed the day sharply higher. The market was also supported by the latest employment report which raised speculation that a rate hike will not take place until after 2016. For today, the U.S. is to report on its trade balances while investors are eyeing the Fed minutes due later this week.
Pivot:1950
Support:195019301910
Resistance:199820152035
Scenario 1:Long positions above 1950 with targets @ 1998 & 2015 in extension.
Scenario 2:Below 1950 look for further downside with 1930 & 1910 as targets.
Comment:The RSI is well directed.
TWTRTwitter named co-founder Jack Dorsey as its permanent CEO after months of speculation. Dorsey was the frontrunner after serving as interim chief executive since former CEO Dick Costolo stepped down in July. Dorsey will step down as chairman but will remain on the board. Following the news the share rose sharply by more than 5%.
Pivot: 24.8
Support: 24.8 22.8 21.7
Resistance: 30.9 32 33.2
Scenario 1: short term rebound towards 30.9.
Scenario 2: below 24.8, expect 22.8 and 21.7.
Comment: the RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed.