The euro continues to weaken against the dollar falling below 1.06 on Wednesday pressured by uncertainty on whether Greece upcoming reforms will satisfy its creditors and as the new ECB easing measures appear to be driving investor funds out of European markets. The ongoing strength in the dollar appears to be adding significant pressure on the main U.S indices as well as on precious metals with gold currently trading close to yearly lows. Today, the market participants will be watching closely the retail sales and jobless claims figures from the U.S for further indications on the strength of the U.S recovery.
The euro approached a 12-year low against the U.S. dollar on Wednesday, falling below 1.06 as foreign investors continue to move funds from European to U.S. bonds right after the quantitative easing has started in the euro zone. Elsewhere, tensions remain high between Greece and its euro zone creditors with members of the ECB's decision-making Governing Council, warning of the consequences that could follow in a potential Greek exit. For today, investors will be focusing on industrial production data from eurozone and later in the day, the U.S is due to announce trade balance data, retail sales and jobless claims figures.
Pivot
1.061
Support
1.043
1.032
1.025
Resistance
1.061
1.07
1.0775
Scenario 1: Short positions below 1.061 with targets @ 1.043 & 1.032 in extension.Scenario 2: Above 1.061 look for further upside with 1.07 & 1.0775 as targets.Comment: The pair remains on the downside and stands below its resistance.
Gold prices fell for the eighth consecutive day on Wednesday as prices neared a one-year low, amid continuing fears of an interest-rate hike by the U.S. Federal Reserve.Furthermore a strengthening dollar affects dollar-denominated commodities, like the precious metal, by making it more expensive for holders of other currencies to purchase the metal.In early Asia on Thursday gold posted a slight rebound as demand flows in China and India for physical gold are in focus.Today investors will focus on U.S. retail sales report and jobless claims data from U.S for further indications on the strength of the recovery.
Pivot
1156
Support
1156
1147
1139
Resistance
1175.35
1182
1192
Scenario 1: Long positions above 1164.2 with targets @ 1175.35 & 1182 in extension.Scenario 2: Below 1156 look for further downside with 1147 & 1139 as targets.Comment: The RSI is well directed.
WTI oil prices fell below $48 a barrel, after data showed that oil supplies in the U.S. rose to the highest level on record, increasing fears related to an oversupplied market. The U.S. Energy Information Administration (EIA) said crude oil inventories increased by 4.5 million barrels last week, in comparison with expectations of a 4.4 million increase.In early Asia on Thursday WTI prices gained, with investors focused on demand prospects to ease a persistent glut in global supplies.
Pivot
49
Support
47.3
46.4
45
Resistance
49
49.85
50.6
Scenario 1: Short positions below 49 with targets @ 47.3 & 46.4 in extension.Scenario 2: Above 49 look for further upside with 49.85 & 50.6 as targets.Comment: As long as 49 is resistance, likely decline to 47.3.
DOW/USD
One day after one of its largest declines of the year, the Dow Jones Industrial Average fell slightly on Wednesday to end the day at 17,645.5 on our platform. The main U.S indices are receiving strong pressures from the rapid depreciation of the euro against the dollar. Today investors will focus on U.S. retail sales report and jobless claims data from U.S for further indications on the strength of the recovery.
Pivot
17875
Support
17550
17490
17390
Resistance
17875
18020
18155
Scenario 1: Short positions below 17875 with targets @ 17550 & 17490 in extension.Scenario 2: Above 17875 look for further upside with 18020 & 18155 as targets.Comment: As long as 17875 is resistance, look for choppy price action with a bearish bias.
MICROSOFT
On Wednesday, the software company announced that its board of directors declared a quarterly dividend of 31 cents per share. Microsoft (NASDAQ:MSFT) said the dividend is payable on June 11 to shareholders of record on May 21, 2015. The ex-dividend date is scheduled for May 19, 2015. The stock showed little volatility on our platform yesterday, fluctuating between 41.80 and 42.30 and finally closed the day in negative territory.