Daily Market Review & Financial Analysis

Dollar Down as Traders Process Slower Pace of Rate Hikes

January 10, 2019

U.S. Stock Market

Wall Street finished in the green as the Fed announced its expectation of a moderate increase in interest rates. The Dow Jones rose 0.39%, the S&P 500 was up 0.41%, and the NASDAQ added 0.87% to its value. Technically, according to the 4-hour chart, the Dow is trading in a triangle with the RSI above 50. Breaching the upper side of the pattern may lead the index towards 24,000, while crossing below the lower side may drop it towards 23,500.

Michael Kors (KORS)

Last : 37.94

Michael Kors shares rose 1.99% closing at $37.92. On the daily chart, the retail stock is bullish, trading below the 30-day Moving Average line with the RSI below 50. Under these conditions, a fall towards $35.00 can be expected. However, breaching above the average may kick off a rally towards $44.00.

Resistance 40.00 42.00 44.00
Support 37.00 35.00 33.00

U.S. Dollar (USD)

The U.S. dollar traded lower against the other major currencies as investors understood that the Fed will slow down the pace of rate hikes this year. Today, Unemployment Claims are expected at 226k vs. 231k previously.

Gold

Last : 1,292

Gold rose 0.61%, closing at $1,292 an ounce. According to the 1-hour chart, the yellow metal is trading positively near the upper Bollinger band with the MACD above 0. Maintaining these conditions may lift Gold towards $1,320, while falling towards the mid-band may push it down to around $1,270.

Resistance 1,300 1,310 1,320
Support 1,285 1,280 1,270

Crude Oil

Last : 51.99

Crude Oil rose 4.80%, closing at $52.17 a barrel. On the 4-hour chart, it is holding below the resistance at $52.90 with the RSI above 50. If the commodity succeeds in breaching the resistance, we might see a rise towards $55.00, but failure to do so may drop the price towards $45.00.

Resistance 53.00 54.00 55.00
Support 50.00 48.00 46.00

Euro (EUR)

Last : 1.1558

The euro rose 0.98% versus the dollar, closing at 1.1554. On the 4-hour chart, the EUR/USD has breached the resistance at 1.1485 and its trading strongly with the MACD above 0. As long as the pair holds above the resistance, a rise towards 1.1620 is expected, although crossing below the line may change the momentum and push the price down to around 1.1400. Today, Italian Retail Sales are expected at 0.25 vs. 0.1% previously.

Resistance 1.1600 1.1640 1.1680
Support 1.1500 1.1470 1.1450

British Pound (GBP)

Last : 1.2794

The pound rose 0.63% versus the dollar, closing at 1.2799. On the 1-hour chart, the GBP/USD is holding below the resistance at 1.2810 and may drop towards 1.2700, while breaching above it may set off a rise towards 1.2900.

Resistance 1.2830 1.2860 1.2900
Support 1.2750 1.2700 1.2670

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