Budget Turmoil in US Leads to Mixed Trading Session

Wall Street closed the trading day mixed as Republicans and Democrats failed to find a solution regarding budget cuts. The Dow Jones gained by 0.08%, the NASDAQ fell by 0.24%, and the S&P 500 lost 0.20% from its value. Technically, the Dow Jones faces resistance at 14,500; should the index fail to cross this resistance level, it is expected to retrace towards the 14,360 support level. The NASDAQ was not able break the 2,830 resistance level for the third day, and the index could drop towards the 2,780 support level should this resistance level not be broken today.

US Dollar (USD)
The US Dollar traded mixed against other major currencies as Republicans and Democrats offered different plans regarding the US budget. The Republicans proposed more cuts in spending, including in health care. The NFIB Small Business Index came out at 90.8 vs. 91.3. Today, Core Retail Sales m/m is expected to come out at 0.5% vs. 0.2 previously, Retail Sales m/m at 0.5% vs. 0.1%, Import Prices m/m at 0.5% vs. 0.6% previously, and Business Inventories m/m at 0.5% vs. 0.1% previously.

Gold
Gold gained by 0.70%, closing at $1,592 an ounce. Technically, we can see a “Flag” pattern on the four-hour chart, and this is a strong signal that Gold will continue rising towards the $1,605 resistance level. Should Gold beak down the $1,585 support level, it might continue dropping towards $1,575.
Last: 1593.95

Resistance 1600 1605 1620
Support 1585 1575 1555


Crude Oil
Crude Oil advanced by 0.6%, closing at $92.60 a barrel. Technically, and according to MACD indicator (which is now at approximately -0.77), Crude Oil is expected to keep rising towards the $93.65 resistance level; should the commodity break this resistance level, it could continue moving towards $95.00. Crude Oil Inventories are expected to come out at 2.3M vs. last week’s 3.8M.
Last: 92.69

Resistance 93.00 93.65 95.00
Support 91.40 90.80 89.50


Euro (EUR)
The euro finished the trading session nearly unchanged against the US Dollar as the German Final CPI m/m came out as expected at 0.6%. Technically, and according to the RSI indicator (which is now located at, approximately, 41), the EUR/USD is expected to rise towards the next resistance level of 1.3100. Should the currency pair fail to breach the resistance level of 1.3065, it could fall back towards the 1.2950 support level. Today, the French Final Non-Farm Payrolls q/q is expected to come out at an unchanged -0.2%, the French CPI m/m at 0.5% vs. -0.5% previously, and the Industrial Production m/m at -0.1% vs. 0.7% previously.
Last: 1.3037

Resistance 1.3100 1.3140 1.3250
Support 1.3000 1.2960 1.2850


British Pound (GBP)
The Pound rose against the other major currencies after the release of mixed macroeconomic data from the UK. The Manufacturing Production m/m came out worse than expected at -1.5% vs. 0.0%, and the Trade Balance came out better than expected at -8.2B vs. -8.8. Technically, the GBP/USD is moving in a range between 1.4835 and 1.4960; should the pair maintain its support level of 1.4835, it should rise towards the 1.5025 resistance level. No major economic data is expected to be released in the UK today.
Last: 1.4938

Resistance 1.4960 1.5000 1.5100
Support 1.4850 1.4830 1.4750


Australian Dollar (AUD)
The Australian Dollar rose against the US Dollar for the second straight day after maintaining the support level of 1.0200. Home Loans m/m came out worse than expected at -1.5% vs. 0.2%. Technically, the AUD/USD breached the 38.20% “Fibonacci Retracement” and is likely to keep rising towards 50%, at 1.0355. MI Inflation Expectations is expected to be released today.
Last: 1.0310

Resistance 1.0355 1.0400 1.0480
Support 1.0250 1.0230 1.0200