Breaking News
0

iFOREX Daily Analysis : January 09,2018

By iFOREXForexJan 09, 2018 04:31AM ET
www.investing.com/analysis/iforex-daily-analysis--january-092018-200278633
iFOREX Daily Analysis : January 09,2018
By iFOREX   |  Jan 09, 2018 04:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The US Dollar continued its recovery and traded higher against a basket of major currencies on Monday, with the US Dollar Index (USDX) closing 0.41% higher. Speeches by FOMC members reinforcing the market’s belief in rate hikes in 2018 pushed the Dollar higher.

Gold closed almost unchanged on Monday while tensions in the Middle East continue, the falling Dollar eased upwards momentum. Oil closed slightly higher also possibly driven by developments in the Middle East, while strong US production limited upside momentum.

US equity indices closed mixed, while the S&P 500 (US 500) and the NASDAQ 100 (US Tech 100) reached all time high levels. Tesla (NASDAQ:TSLA) surged up by 6.26% which puzzled analysts because no hard data was released to explain such a move.

After an upbeat trading over the weekend, most significant cryptocurrencies closed lower, while Ethereum was able to remain up following its recent surge over the $1000 level. Reports from China indicated that the government intends now not only to clamp down on cryptocurrency trade, but also target miners of Bitcoin and other cryptocurrencies. Bitcoin fell over 10% during the course of Monday’s trading.

For Tuesday German data on global trade and industrial production is expected. France will publish merchandise trade statistics and the European Union its unemployment rate. Switzerland is due to release Adjusted Real Retail Sales statistics and Canada its housing starts numbers. In the Asian trading session on Wednesday China will release consumer and producer price index data.

EUR/USD

The EUR/USD traded again lower against the Dollar as recent speeches by FOMC members increased the sentiment of possible rate hikes in the US this year. After on Monday three FOMC members spoke, speeches by other three members are scheduled for the rest of this week. Retail sales and the economic sentiment in the Euro zone was better than expected with the EC Economic Sentiment being at 116.0 (expected 114.8 / previously 114.6), however German manufacturing orders over the last month were with -0.4% lower than expected (-0.1%).

For Tuesday German data on global trade and industrial production is expected. France will publish merchandise trade statistics and the European Union its unemployment rate.

EUR/USD Chart
EUR/USD Chart

Pivot: 1.2 Support: 1.1935 1.191 1.188Resistance: 1.2 1.2015 1.204 Scenario 1: short positions below 1.2000 with targets at 1.1935 & 1.1910 in extension. Scenario 2: above 1.2000 look for further upside with 1.2015 & 1.2040 as targets. Comment: the RSI shows downside momentum.

USD/PLN

Polish Złoty fell by over 1% against the strong Dollar on Monday despite higher demand for housing loans in December. The weak currency helped the WIG20 (+0.75%) gain more than most other European stock indices. On Wednesday the National Bank of Poland (NBP) is due to make a decision on the benchmark interest rate.

USD/PLN Chart
USD/PLN Chart
Pivot: 3.4639 Support: 3.4639 3.454 3.448Resistance: 3.4897 3.4956 3.5016 Scenario 1: the upside prevails as long as 3.4639 is support. Scenario 2: the downside breakout of 3.4639 would call for 3.4540 and 3.4480. Comment: the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the pair is trading above both its 20 and 50 MAs (respectively at 3.4619 and 3.4554).

WTI Oil

Oil traded slightly higher on Monday, still close to the recent 2.5 year high as political turmoil in the Middle East continues to worry traders. On the other hand the prospect of further increases in oil production in the United States keeps upside limited to some extent.

On Tuesday the American Petroleum Institute (API) will release oil stockpile figures, followed by the Energy Information Administration (EIA) on Wednesday.

WTI Oil Chart
WTI Oil Chart
Pivot: 61.1 Support: 61.1 60.75 60.3Resistance: 62.2 62.55 63 Scenario 1: long positions above 61.10 with targets at 62.20 & 62.55 in extension. Scenario 2: below 61.10 look for further downside with 60.75 & 60.30 as targets. Comment: the RSI advocates for further upside.

US 500

US equity indices traded mixed on Monday, with the NASDAQ 100 (US Tech 100) and S&P 500 (US 500) reaching again new record high, while the Dow Jones Industrial Average (US 30) closed slightly lower. Utilities (US Utilities ETF +0.99%) stocks gained during Monday trading, but biotech stocks closed significantly lower (US Biotech ETF -1.27%). Electric car maker Tesla (+6.26%) closed significantly higher, while analysts had difficulty to pinpoint the reason for this surge. Delta Air Lines (NYSE:DAL) closed 2.54% lower as airlines in the US struggle with the icy conditions. Delta is due to release earnings numbers on Thursday.

Significant economic data is expected with import/export prices on Wednesday, the Treasury budget on Thursday and the Consumer Price Index (CPI) on Friday.

US 500 Chart
US 500 Chart

Pivot: 2735 Support: 2735 2726 2717 Resistance: 2760 2770 2780 Scenario 1: long positions above 2735.00 with targets at 2760.00 & 2770.00 in extension. Scenario 2: below 2735.00 look for further downside with 2726.00 & 2717.00 as targets. Comment: the break above 2735.00 is a positive signal that has opened a path to 2760.00. The index keeps riding on a bullish trend line drawn from end-2017.

iFOREX Daily Analysis : January 09,2018
 
iFOREX Daily Analysis : January 09,2018

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: You should not engage in speculative spot forex or CFD trading unless you understand the basic aspects of such trading and its risks – for example, how positions are opened and closed, how profits and losses are made and the extent of your exposure to risk and loss. Trading in spot Forex and CFDs is speculative and involves a high degree of risk. In particular, because it will be conducted using margin (which covers only a small percentage of the value of the foreign currency traded), price changes in spot Forex or CFD can result in significant losses. Therefore, trading in these contracts is appropriate only for persons who understand and are willing to assume the economic, legal and other risks involved in such transactions.
Continue with Google
or
Sign up with Email