The US Dollar traded for the second day lower against other majour currencies as the US Dollar Index (USDX) closed 0.3% lower. Particularly the British Pound (GBP) continued its uptrend and surpassed the 1.40 level against the US Dollar for the first time after the Brexit vote. The CBI Industrial Trends Survey from the UK beat expectations (14 / expected 12 / previous 17) and helped the positive sentiment.
Gold traded up close to last week’s high supported by a weak Dollar and lower Treasury yields. Oil was initially on expectations of lower stockpiles in the US, which actual API data could not fulfill by showing actually higher inventory numbers than the week before.
US equities traded mixed, with the NASDAQ (US Tech 100) showing the strongest performance of the majour indices. Earning season with a sufficiently positive results supports the positive sentiment.
Cryptocurrencies mostly recovered on Tuesday with the Bitcoin only briefly dipping below the psychologically important $10,000 level and consolidating above $11,000 during Tuesday afternoon. South Korea announced guidelines regarding cryptocurrency trading, focusing on raising taxes and eroding anonymity of those exchanges. NASDAQ’s CEO confirmed reports that they are looking into the cryptocurrency market, without disclosing any specifics.
On Wednesday in Germany and the European Union manufacturing and services PMI data will be released. The United Kingdom releases unemployment numbers. In the US data about existing home sales will be published. In the following trading session Australia is due to release Consumer Price Index (CPI) data.
EUR/USD traded higher and for a short time surpassed again the level of 1.23 on positive business expectations and conditions survey data from Germany according to the ZEW institute. Little significant data was released in the US with the Richmond Fed Manufacturing Index falling below expectations. While the markets likely did not expect significant problems from the government shutdown, the resolution for the time being helps US sentiment.
On Wednesday in Germany and the European Union manufacturing and services PMI data will be released. In the US data about existing home sales will be published.
Pivot: 1.2255 Support: 1.2255 1.223 1.2215Resistance: 1.2305 1.2325 1.2355 Scenario 1: long positions above 1.2255 with targets at 1.2305 & 1.2325 in extension. Scenario 2: below 1.2255 look for further downside with 1.2230 & 1.2215 as targets. Comment: the RSI is supported by a bullish trend line.
Gold
Gold traded higher in late Tuesday trading, supported by a weaker US Dollar and lower Treasury yields. As gold is the same as Treasuries regarded as a safe haven asset, lower yields in Treasuries make the non-interest bearing gold more attractive in comparison. Key data for the US economy is expected on Friday with Durable Goods orders and Gross Domestic Product figures.
Pivot: 1335 Support: 1335 1328 1324Resistance: 1344.75 1348 1353 Scenario 1: long positions above 1335.00 with targets at 1344.75 & 1348.00 in extension. Scenario 2: below 1335.00 look for further downside with 1328.00 & 1324.00 as targets. Comment: the RSI is bullish and calls for further advance.
WTI Oil
WTI oil came very close to the previous weeks high but had to retrace later as data from the American Petroleum Institute (API) surprisingly showed US crude oil stockpiles increasing by 4.8 million barrels during the previous week, while market expectation was on slightly falling stockpiles.
The Energy Information Administration (EIA) will publish its crude oil inventories statistics on Wednesday.
Pivot: 64.05 Support: 64.05 63.68 63Resistance: 65.4 65.8 66.55 Scenario 1: long positions above 64.05 with targets at 65.40 & 65.80 in extension. Scenario 2: below 64.05 look for further downside with 63.68 & 63.00 as targets. Comment: the RSI is bullish and calls for further advance.
US 500
US equity indices closed mixed with the Dow Jones Industrial Average (US 30) closing lower and the S&P 500 (US 500) only 0.08% higher – but still at a new record – the NASDAQ (US Tech 100) closed 0.37% higher.
Part of it is attributed to the strong performance of Netflix (NASDAQ:NFLX), which closed 10.16%, following better than expected earnings and subscriber figures published on Monday after the closing bell. Johnson & Johnson (NYSE:JNJ) closed 4.04% lower as the company reported losses due to changes in new US tax policies. General Electric (NYSE:GE) was 4.58% up a day before its quarterly earnings are due for release on Wednesday. Also on Wednesday Abbot Laboratories and Comcast (NASDAQ:CMCSA) are due to publish their financial statements. On Thursday among others Caterpillar (NYSE:CAT), Celgene (NASDAQ:CELG) and 3M will show their numbers before markets open.
Pivot: 2822 Support: 2822 2813 2800 Resistance: 2855 2865 2877 Scenario 1: long positions above 2822.00 with targets at 2855.00 & 2865.00 in extension. Scenario 2: below 2822.00 look for further downside with 2813.00 & 2800.00 as targets. Comment: the RSI calls for a rebound.