Daily Market Review & Financial Analysis

Manufacturing Slowdown Damages Dollar

May 27, 2019

U.S. Stock Market

U.S. stocks traded higher on Friday after President Donald Trump toned down his attacks on Huawei. The Dow Jones rose by 0.7%, the S&P 500 went up by 0.6%, and the NASDAQ added 0.6% to its value. Technically, according to the 4-hour chart, the Dow is trading below the bearish trendline. As long as it stays there, a drop to around 25,500 is expected. However, crossing above the line could take it back up to around 25,800.

Facebook (FB)

Last : 181.05

Facebook shares rose 0.09%, closing at $181.05. On the daily chart, the stock is holding above the bullish trend line, which should push the price up to around $190.00. Dropping below the line, however, could set off a decline towards $170.00.

Resistance 182.00 186.00 190.00
Support 180.00 175.00 170.00

U.S. Dollar (USD)

The U.S. dollar traded weakly against its rivals after American manufacturing activity hit its lowest level in almost a decade, which could mean the U.S. economy is slowing down.

Gold

Last : 1,284

The price of Gold was up, closing at $1,284. According to the 4-hour-chart, the metal is trading above the Simple Moving Average. This may lead to a rise towards $1,294, while breaking below the line could mark the start of a fall to around $1,274.

Resistance 1,286 1,290 1,294
Support 1,282 1,278 1,274

Crude Oil

Last : 58.8

Crude Oil rose, closing at $58.80. On the 8-hour chart, “black gold” is holding above the support, and could now rise towards $61.00. Dipping below the line, on the other hand, might cause it to drop to around $57.50.

Resistance 59.0 59.5 60.0
Support 58.5 58.0 57.5

Euro (EUR)

Last : 1.1205

The euro traded higher versus the dollar, closing at 1.1205. On the 2-hour chart, the EUR/USD is holding below the resistance. Under these conditions, the pair is expected to continue falling to around 1.1130 but breaching above the line might lift it towards 1.1280.

Resistance 1.1220 1.1250 1.1280
Support 1.1190 1.1160 1.1130

British Pound (GBP)

Last : 1.272

The pound traded higher against the dollar, closing at 1.2720. On the 4-hour chart, the GBP/USD is trading below a bearish trend line. This level of performance could cause it to fall towards 1.2600. However, breaching above the line may take the Cable up to around 1.2820.

Resistance 1.273 1.277 1.282
Support 1.270 1.265 1.260

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.