Daily Market Review & Financial Analysis

2% is OK Say FED

May 24, 2018

U.S. Stock Market

Wall Street finished in the green after the Federal Reserve claimed that inflation higher than 2% is sustainable. The Dow rose by 0.21%, the S&P 500 by 0.32%, and the NASDAQ added 0.64% to its value. Technically, according to the 1-hour chart, the NASDAQ has breached the resistance of 6,950, supported by the RSI above 50. Maintaining these conditions may lead the index towards 7,000, while crossing below may drop it to around 6,900.

Netflix (NFLX)

Last : 344.85

Netflix rose, 3.95% closing at $344.72. On the 4-hour chart, the share is trading above the 20-day Moving Average with the MACD above 0. As long as it maintains these conditions, we might see a rise towards $350.00, while breaking below the average may push it down to around $330.00.

Resistance 350.00 355.00 360.00
Support 340.00 335.00 330.00

U.S. Dollar (USD)

The U.S. Dollar traded high against the other major currencies after the Federal Reserve’s inflation announcement. The Flash Services PMI came out at 55.7 and the New Home Sales at 662k. Today, the Unemployment Claims is expected at 220k vs. 222k previously.


Last : 1,294

Gold rose 0.06%, closing at $1,294 an ounce. According to the 4-hour chart, gold is trading bearish in a descending channel. Breaching the upper side of the channel may change the momentum and start a rise towards $1,330, while a failure may continue the negative trend to around $1,280.

Resistance 1,300 1,310 1,320
Support 1,290 1,280 1,270

Crude Oil

Last : 71.87

Crude Oil fell 0.40%, closing at $71.88 a barrel. On the 4-hour chart, oil has broken below the bullish trend line. Should it succeed in breaching the line, a rise towards $73.00 can be expected, while a failure may drop it towards $70.00.

Resistance 72.50 73.00 74.00
Support 71.00 70.50 70.00

Euro (EUR)

Last : 1.1703

The euro fell 0.70% versus the dollar, closing at 1.1705. On the 4-hour chart, the pair is trading in a descending channel. As long as it maintains this condition, a drop towards 1.1600 is expected. However, breaching the upper line of the channel may start a reversal and a rise towards 1.1850. Today, the Eurogroup Meeting is expected.

Resistance 1.1750 1.1800 1.1850
Support 1.1650 1.1600 1.1550

British Pound (GBP)

Last : 1.3352

The Pound fell 0.62% versus the dollar, closing at 1.3357. On the 8-hour chart, the pair is trading bearish near the lower band of the Bollinger Bands indicator with the RSI below 50. Breaching the upper band may lift the pair towards 1.3600, while breaking below the lower band may drop it towards 1.3200. Today, the Retail Sales is expected at 0.8% vs. -1.2% previously.

Resistance 1.3400 1.3450 1.3500
Support 1.3300 1.3250 1.3200

Disclaimer: The information contained in this publication is produced by Alliance Signals, a trade name of iSignals GmbH, regulated by Polyreg of Switzerland. This material is considered a marketing communication and does not contain and should not be construed as containing investment advice or an investment recommendation or an offer of or solicitation for any transactions in financial instruments. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of UFX. This communication must not be reproduced or further distributed without prior permission of Alliance Signals.