Positive Macroeconomic Data Boosts US Indices

US Stock Market – Major US stock indices closed the trading day in the green due to sharp increases in European markets and positive macroeconomic data from the US. The S&P closed at an all-time high, adding 0.61% to its value and closing at 1,567; the Dow Jones rose by 0.60%, the NASDAQ by 0.91%, and Goldman Sachs by 0.91%; Facebook, however, fell by -2.01%. Technically, the S&P is trading in an ascending channel and is expected to continue its bullish momentum towards 1,585. The Dow Jones is expected to move towards 14,650, and the NASDAQ is expected to attempt to break the resistance level of 2,835 in order to reach 2,850.

US Dollar (USD)
The US Dollar closed the trading day mixed against other major currencies. Total Vehicle Sales came out as expected at 15.3M, Factory Orders m/m came out worse than expected at 3.0% vs. 3.1%, and the IBD/TIPP Economic Optimism came out as expected at 46.2. Investors are eagerly awaiting today’s ADP Non-Farm Employment Change, which is expected to come out at 203K vs. 198K previously. The ISM Non-Manufacturing PMI is expected at 55.9 vs. 56.0. FOMC Member Bullard will speak today.


Gold
Gold –Gold declined by 1.60% against the US Dollar closing at $1,576 an ounce yesterday; the precious metal fell to $1,562 during the Asian trading session. Gold, which broke down the range between $1,590 and $1,620, is now trading at, approximately, $1,566 levels. According to “Fibonacci Retracement,” Gold will likely start climbing towards the $1,575 resistance level.


Last: 1565

Resistance 1575 1585 1600
Support 1555 1525 1500


Crude Oil
Crude Oil rose by 0.05% and closed the trading day at $96.90 a barrel. Oil is moving in a range between the $96.00 support level and the $97.00 resistance level. Should Oil maintain its support at $96.00, it could rise towards $98.00, possibly $98.50. Today, Crude Oil Inventories are expected to come out at 1.8M vs. 3.3M previously.
Last: 96.60

Resistance 97.40 98.10 98.60
Support 96.10 95.50 94.90


Euro (EUR)

Euro (EUR) –The euro fell against other major currencies as the Italian Manufacturing PMI came out worse than expected, at 44.5 vs. 45.4. Technically, the EUR/USD has strong support at 1.2750. Should the currency pair break down this support, it might continue towards the 1.2600 support level; should, however, the currency pair maintain this support level, it might rise towards the 1.3000 resistance level. Today’s CPI Flash Estimate y/y is expected to come out at 1.6% vs. 1.8% previously.

Last: 1.2798

Resistance 1.2875 1.2910 1.3000
Support 1.2750 1.2690 1.2660


British Pound (GBP)
The Pound declined against other major currencies after the Manufacturing PMI showed a lower output than had been forecast. The GBP/USD has strong support at 1.5050, and as long as the pair maintains this support the momentum will remains bullish, with resistance at 1.5150. Should the GBP/USD break down the support level of 1.5050, it could continue towards the 1.5000 support level. Today’s Construction PMI is expected to come out at 47.7 vs. 46.8 previously, the Housing Equity Withdrawal q/q at -7.4B vs. -8.0B.

Last: 1.5084

Resistance 1.5100 1.5150 1.5200
Support 1.5050 1.5000 1.4950


Australian Dollar (AUD)
Although the Australian Dollar fell against other major currencies after the Cash Rate remained at 3.00%, it rose after the release of a better than expected Trade Balance. According to the 1-hour chart, the AUD/USD has strong support at 1.0420, which is also the 61.80% “Fibonacci Retracement.” As long as the currency pair maintains this support, the momentum is likely to remain bullish. Today’s Building Approvals m/m is expected to come out at 2.4% vs. -2.4%, Retail Sales at 0.3% vs. -2.4% previously.
Last: 1.0450

Resistance 1.0500 1.0550 1.0600
Support 1.0420 1.0400 1.0350