Daily Market Review & Financial Analysis

Emerging Currencies Hammer the Dollar

September 21, 2018

U.S. Stock Market

U.S. indices closed higher on Thursday, after gains for Technology, Consumer Goods and Basic Materials stocks. The Dow Jones rose by 0.97%, the S&P 500 by 0.85% and the NASDAQ added 1.00% to its value. According to the 8-hour chart, the Dow is trading above the 20-day Moving Average and under these conditions, we might see a rise towards 26,850. Crossing below the SMA line, on the other hand, could cause the index to drop towards 26,400.

U.S. Dollar (USD)

The dollar fell to nearly a four-month low against its rivals on Thursday, as investors bet on an ongoing rebound in emerging-market currencies amid improved sentiment in developing economies.

Gold

Last : 1,207

Gold traded higher, closing at $1,207 an ounce. On the 1-hour chart, it is trading below the resistance line at $1,208, and if these conditions are maintained, the precious metal could drop as low as $1,204. Crossing above the line, however, could start a positive trend and see the price rise towards $1,210.

Resistance 1,208 1,209 1,210
Support 1,206 1,205 1,204

Crude Oil

Last : 70.18

Crude Oil settled lower Thursday after President Donald Trump demanded that OPEC find a way to slash prices. According to the 2-hour chart, Oil is trading below the resistance line at $71.30. If current conditions continue, a drop to around $69.00 can be expected, while a change in trader sentiment could lead the price up towards the resistance line.

Resistance 70.50 70.90 71.30
Support 70.00 69.50 69.00

Euro (EUR)

Last : 1.1779

The euro traded higher against the U.S. dollar, closing at 1.1779. The 2-hour chart shows the EUR/USD trading above the SMA line and with the RSI indicator above 50, we might see it rising towards 1.1900. However, breaking below the Average line could cause a reversal and a drop towards 1.1650.

Resistance 1.1800 1.1850 1.1900
Support 1.1750 1.1700 1.1650

British Pound (GBP)

Last : 1.3272

The pound rose against the U.S. dollar, closing at 1.3272. On the 4-hour chart, the pair is trading in an ascending channel pattern. Breaking below the lower side of this channel could drive the GBP/USD down towards 1.3150, while staying within it could push the price up to around 1.3400.

Resistance 1.3300 1.3350 1.3400
Support 1.3250 1.3200 1.3150

Canadian Dollar (CAD)

Last : 1.2901

The Canadian dollar traded lower on Thursday, closing at 1.2901. According to the 1-hour chart, The USD/CAD is holding under the bearish trend line with the RSI indicator below 50, which could send the price tumbling towards areas around 1.2750. However, crossing above the line could spark a rise towards 1.3050. Today, The CPI m/m is expected at -0.1% vs 0.5% previously and the Core Retail Sales m/m is expected at 0.6% vs -0.1% previously.

Resistance 1.2950 1.3000 1.3050
Support 1.2850 1.2800 1.2750

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