The US Dollar traded stronger against major currencies on Thursday for the third day in a row with the US Dollar Index (USDX) closing 0.24% higher. Positive US job market data as well as progress in tax reform and government funding helped the Dollar to strengthen again.
Gold reached a new low and traded at the level last seen in July helped by positive economical sentiment in the US as well as the strong US Dollar. Oil traded higher amid tensions in the Middle-East as well as possible union actions in Nigeria, which is a member of the OPEC.
US equities traded higher supported by higher consumer credit figures as well as other positive fundamental factors. Biotech and industrial stocks had the best performance in Thursday’s trading session.
Bitcoin continued it rally and was up by around 20% on Thursday, whereas other major cryptocurrencies such as Ethereum and Monero traded roughly unchanged. The high volume of transaction allowed the price to spike on some exchanges close to $20,000 and cause outages, while it remained at functioning exchanges at around 15-16 thousand. On Sunday evening the US futures exchange CBOE will launch futures, which is expected to help bring Bitcoin even further to the mainstream. Investment bank Goldman Sachs (NYSE:GS) announced that it would clear Bitcoin futures for some of its customers once the contracts are available.
On Friday Germany publishes its global trade statistics, the United Kingdom releases Industrial Production (IP), Manufacturing Output and global trade statistics. Canada releases Housing Starts level statistics. The US publishes Non-Farm Payrolls (NFP), unemployment rate, average earnings, and University of Michigan Consumer Sentiment – level statistics.
The US Dollar was stronger against the Euro for the third day in a row as US jobless claims were below expectations at 236 thousand (expected 240 thousand / previous 238 thousand). Besides the tax reform progress, which helped the Dollar to its strength, on Thursday evening the US House of Representatives approved an extension of government funding by two weeks and thus likely averted a looming government shutdown. On Friday Germany publishes its global trade statistics while the US publishes multiple job market data, especially the highly anticipated Non-Farm Payroll (NFP).
Pivot: 1.18
Support: 1.176 1.1735 1.172
Resistance: 1.18 1.183 1.185
Scenario 1: short positions below 1.1800 with targets at 1.1760 & 1.1735 in extension.
Scenario 2: above 1.1800 look for further upside with 1.1830 & 1.1850 as targets.
Comment: the RSI is capped by a declining trend line.
Gold
Gold traded on Thursday at its lowest point since July supported by positive economic data from the US as well as progress in the Trump’s administration legislation. The agreement by both Democrats and Republicans in the House of Representatives on Thursday to extend government funding raised hope that tax reform bill and a longer term funding extension could be agreed. The strong US Dollar and higher US Treasury yields further put gold prices under pressure. On Friday the US releases multiple job market indicators such as unemployment rate and Non-Farm Payrolls (NFP).
Pivot: 1258
Support: 1240 1235.5 1228
Resistance: 1258 1262.5 1269
Scenario 1: short positions below 1258.00 with targets at 1240.00 & 1235.50 in extension.
Scenario 2: above 1258.00 look for further upside with 1262.50 & 1269.00 as targets.
Comment: the RSI shows downside momentum.
WTI Oil
Oil traded higher on Thursday amid rising tensions in the Middle East as Saudi Arabia launches new strikes on Yemen, following the death of former ruler Saleh at the hands of the Houthis, who are supported by Iran. In Nigeria one of the most influential unions in the oil sector threatened strikes from the 18th December if the government would not abide by their demands.
The Baker Hughes Oil Rig Count, which is published on Friday, will indicate the number of operating oil rigs in the United States.
Pivot: 56.23
Support: 56.23 55.85 55.5
Resistance: 57.05 57.35 57.87
Scenario 1: long positions above 56.23 with targets at 57.05 & 57.35 in extension.
Scenario 2: below 56.23 look for further downside with 55.85 & 55.50 as targets.
Comment: the RSI broke above a bearish trend line.
US 500
US indices traded higher on Thursday as economic data such as new jobless claims and consumer credit were better than expected. The agreement in the US House of Representatives to extend government funding further improved sentiment.
Biotech (US Biotech ETF +1.44%) and industrial (US Industrial ETF +0.87%) stocks were the strongest performers of the day. Non-cyclical (US Non-Cyclicals ETF -0.86%) and health sector (US Health Care ETF -0.01%) stocks however declined.
On Friday Non-Farm Payrolls (NFP), unemployment rate, average earnings, and University of Michigan Consumer Sentiment – level statistics will be published.
Pivot: 2626
Support: 2626 2620 2614
Resistance: 2641.5 2648 2657
Scenario 1: long positions above 2626.00 with targets at 2641.50 & 2648.00 in extension.
Scenario 2: below 2626.00 look for further downside with 2620.00 & 2614.00 as targets.
Comment: the RSI is mixed with a bullish bias.