U.S. Stock Market
Yesterday was a day of mourning in the United States following the death of former president George H. W. Bush, with no trading on Wall Street. U.S. indices finished in the red on Tuesday after the Dow Jones fell by 3.10%, the S&P 500 dropped 3.24%, and the NASDAQ lost 3.80% of its value. Technically, according to the 8-hour chart, the Dow is trading near the lower Bollinger band, with the RSI below 50. Should the index succeed in breaching the mid-band, we might see a rise towards the upper band around 26,000, while failure to do so may continue the bearish momentum and push the index down towards 24,500.
Alibaba shares fell 3.30% to close at $158.34. On the 1-hour chart, the stock has dropped below the bullish trend line with the MACD below 0. If these conditions continue, a fall towards $150.00 can be expected. However, climbing and breaching the trend line may lead the price up towards $170.00.
U.S. Dollar (USD)
The U.S. Dollar traded mixed against the other major currencies, with the minds of Americans on the passing of their 41st president. Today, the ISM Non-Manufacturing PMI and the ADP Non-Farm Employment Change are expected at 59.2 and 196k respectively.
Gold fell 0.01%, closing at $1,238 an ounce. According to the 4-hour chart, the metal is holding below the resistance line at 1,240 with the RSI above 50. As long as the price stays below the line, we might see a fall towards $1,220. However, breaching the line could start a rise to around $1,250.
Crude Oil fell 1.05%, closing at $52.69 a barrel, with a new cooperation agreement between OPEC and non-OPEC producers widely expected. On the 1-hour chart, Oil is trading in a channel between the resistance at $54.20 and the support line at $52.15. Breaching the upper side of this channel may lift the price towards $55.00, while crossing below the lower side may force it down to around $51.00.
The euro rose 0.03% versus the dollar, closing at 1.1348. On the 1-hour chart, the EUR/USD is trading in a triangle with the MACD around 0. Breaching the triangle’s upper side may lead the pair up towards 1.1450, while breaking below the lower side may push it down to around 1.1250. Today, the German Factory Orders indicator is expected at -0.4% vs. 0.3% previously.
British Pound (GBP)
The pound rose 0.06% versus the dollar, closing at 1.2727. On the daily chart, the GBP/USD is bearish, trading below the 30-day Moving Average line. This may cause the pair to drop towards 1.2650, although breaching above the average line may change the momentum and lift it towards 1.2900. Today, MPC Member David Ramsden is due to speak.