The dollar moved lower against most major currencies on Wednesday, after data showed that U.S. inflation fell last month and as investors await for the Federal Reserve's highly-anticipated policy statement due on Thursday. The Commerce Department said consumer prices edged down by 0.1% last month, in line with forecasts following a 0.1% increase in July. Core consumer prices, which exclude volatile food and energy costs, increased by 0.1%, also in line with the consensus forecast and was 0.2% higher from the same month a year earlier. Market sentiment remains vulnerable as investors remain cautious due to uncertainty over whether the Fed would hike short term interest rates for the first time in almost a decade on Thursday. Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.EUR/USD
The euro gained slightly against the dollar on Wednesday to halt a two-day losing streak, after soft inflation data both from the U.S. and from euro zone. The disappointing data from last month was released ahead of Federal Reserve anticipated press conference on Thursday, where the Fed could announce plans to raise its benchmark interest rates for the first time in more than nine years. Last month, Fed vice chairman Stanley Fischer indicated that there is good reason to believe that inflation will move higher as the temporary forces restraining it from a stronger dollar and falling energy prices continue to "dissipate further." Prior to the Fed’s statement, the U.S. is to release reports on jobless claims, building permits, housing starts, and manufacturing activity in the Philadelphia region.
Pivot: 1.1265
Support: 1.1265 1.121 1.118
Resistance: 1.133 1.137 1.1415
Scenario 1: Long positions above 1.1265 with targets @ 1.133 & 1.137 in extension.
Scenario 2: Below 1.1265 look for further downside with 1.121 & 1.118 as targets.
Comment: The RSI is mixed with a bullish bias. The pair has broken above the upper boundary of a bearish channel and remains on the upside.
WTI OilData from the U.S. Energy Information Administration showed the largest inventory decrease since February 2014 at the Cushing, Oklahoma delivery point, causing prices to jump by more than 5%. Crude oil inventories dropped by 2.1 million barrels in the week ended Sept. 11, according to the Energy Information Administration. Economists had expected weekly inventories to drop by 200,000 barrels. But Wednesday's price gains did not continue on Thursday, due to weak economic data from Asia as Japan's exports slowed for a second month in August in a sign that China's economic slowdown is spreading.
Pivot: 46.5
Support: 46.5 45.9 45.1
Resistance: 47.8 48.4 48.8
Scenario 1: Long positions above 46.5 with targets @ 47.8 & 48.4 in extension.
Scenario 2: Below 46.5 look for further downside with 45.9 & 45.1 as targets.
Comment: A support base at 46.5 has formed and has allowed for a temporary stabilisation.
S&P 500The prospect of a delayed rate hike kept investors in a good mood on Wednesday. The main indexes rose for their second day in a row after weaker inflation data boosted hopes the Federal Reserve could refrain from raising interest rates in its September meeting. The S&P 500 was up 0.86%, the Dow Jones Industrial Average added 0.82%, and the Nasdaq gained 0.59%. U.S. consumer inflation fell in August for the first time this year, driven by a decline in gasoline prices last month, according to the Consumer Price Index. Nine of 10 sectors closed in the green. Stocks in the Energy, Basic Materials and Consumer Goods industries led, each gaining more than 1.5% on the session. Stocks in the Telecommunications sector lagged. Prior to the Fed’s statement, the U.S. is to release reports on jobless claims, building permits, housing starts, and manufacturing activity in the Philadelphia region.
Pivot: 2044
Support: 1867 1820 1798
Resistance: 2044 2135 2180
Scenario 1: Short positions below 2044 with targets @ 1867 & 1820 in extension.
Scenario 2: Above 2044 look for further upside with 2135 & 2180 as targets.
Comment: The upward potential is likely to be limited by the resistance at 2044.
Apple (NASDAQ:AAPL)
Apple’s stock has taken a dive during the past month, but that looks like it’s about to change as preorders for the new iPhone are on pace to beat last year’s 10 million record. As of the market close on September 15, 2015, the stock was up to $116.28 per share and this steady climb will likely continue. Apple is delaying its new operating system for the Apple Watch to fix some bugs is unlikely to hurt the stock much.
Pivot: 117.6
Support: 102.1 92.35 86.5
Resistance: 117.6 125 134.4
Scenario 1: Short positions below 117.6 with targets @ 102.1 & 92.35 in extension.
Scenario 2: Above 117.6 look for further upside with 125 & 134.4 as targets.
Comment: The RSI is below its neutrality area at 50%