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 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.
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.
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.
British Pound (GBP)
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%.
Canadian Dollar (CAD)
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.