Daily Market Review & Financial Analysis

Euro Hitting 3-Year Highs

January 16, 2018

U.S. Stock Market

U.S. stock markets were closed on Monday due to Martin Luther King Day. The Dow rose by 0.18%, while the S&P 500 fell by 0.07% and the NASDAQ lost 0.11% from its value. On the 2-hour chart, the S&P 500 is trading above its 20-Day Moving Average with the ADX indicator above 20. As long as it holds above the SMA line, a rise towards $2,900 is expected. However, crossing below the line may start a reversal and a drop towards $2,650.

U.S. Dollar (USD)

The U.S. dollar traded lower against a basket of major currencies on Monday as speculation that the European Central Bank is preparing to scale back its massive stimulus program propelled the euro to more than three-year highs.

Gold

Last : 1,340

Gold rose, closing at $1,340. On the 8-hour chart, gold is trading below the resistance line at $1,343 with the RSI indicator above 50. Remaining below this line may lead gold towards $1,335, while breaching above could take it to around $1,346.

Resistance 1,342 1,344 1,346
Support 1,339 1,337 1,335

Crude Oil

Last : 64.56

Crude Oil rose, closing at $64.56. On the 2-hour chart, oil is trading above a bullish trend line. Maintaining this condition should continue the positive trend rising towards $65.60. However, breaking below the line could take oil back to lower areas around $63.50.

Resistance 64.80 65.20 65.60
Support 54.30 63.90 63.50

Euro (EUR)

Last : 1.2267

The euro rose versus the dollar, closing at 1.2267. On the 8-hour chart, the EUR/USD is trading bullish above the 20-Day Moving Average line with the RSI indicator above 50. As long as the pair maintains these conditions, we might see a rise towards 1.2380, while crossing below the Moving Average may start a retracement towards 1.2150.

Resistance 1.2280 1.2330 1.2380
Support 1.2240 1.2190 1.2150

British Pound (GBP)

Last : 1.3804

The Pound rose versus the dollar, closing at 1.3804. On the Daily chart, the GBP/USD is trading in a bullish channel. Holding above this level may take it higher towards 1.3950, while a failure may drop it towards 1.3600. Today, The CPI y/y is expected at 3.0% vs 3.1%.

Resistance 1.3850 1.3900 1.3950
Support 1.3750 1.3680 1.3600

Canadian Dollar (CAD)

Last : 1.2428

The Canadian dollar traded lower versus the dollar, closing at 1.2428. On the 8-hour chart, the USD/CAD is trading above the support line at 1.2400. Holding this condition, it is expected to continue rising towards 1.2530, while breaking below the support may start a strong reversal back to lower areas around 1.2330.

Resistance 1.2450 1.2490 1.2530
Support 1.2400 1.2365 1.2330

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