Daily Market Review & Financial Analysis

Trump’s Trade Talk Spooks Stocks, Boosts Dollar

February 11, 2019

U.S. Stock Market

Wall Street ended last week mixed, with gains in the Consumer Goods and Telecoms sectors alongside losses for Oil & Gas and Financials stocks. The Dow Jones fell 0.25%, the S&P 500 rose by 0.07%, and the NASDAQ added 0.14% to its value. Technically, according to the daily chart, the Dow is holding below the bearish trend line and may now fall towards 22,500. However, breaching above the line could take it up to around 26,000.

U.S. Dollar (USD)

The dollar traded higher against its rivals Friday, having risen for seven sessions in a row, as discouraging comments on trade from President Donald Trump spooked the stock market. No US financial data is expected to be published today.

Gold

Last : 1,313

Gold rose, closing at $1,314 an ounce. According to the 1-hour chart, the metal is trading below the resistance line at $1,316, which should lead gold down towards $1,300, although breaching above the line may take it higher to around $1,325.

Resistance 1,316 1,320 1,325
Support 1,310 1,305 1,300

Crude Oil

Last : 52.37

Crude Oil rose, closing at $52.72 a barrel. On the 4-hour chart, the key commodity is trading above the support line at $52.00, performance which may drive the price up towards $55.00. However, breaking below the line could force it down to around $50.00.

Resistance 53.00 54.00 55.00
Support 52.00 51.00 50.00

Euro (EUR)

Last : 1.1326

The euro fell due to the stronger dollar, closing at 1.1322. On the 1-hour chart, the EUR/USD is trading below the bearish trend line, with the RSI indicator below the 50 level. These conditions could lead the pair towards 1.1200. However, crossing above the trend line may lead it towards 1.1450.

Resistance 1.1350 1.1400 1.1450
Support 1.1300 1.1250 1.1200

British Pound (GBP)

Last : 1.2936

The pound fell against the U.S. dollar, closing at 1.2935. On the 1-hour chart, the GBP/USD is trading in a descending triangle pattern. Breaking below the lower side may push the pair down towards 1.2800 but breaching above upper side could take it to around 1.3050.

Resistance 1.2950 1.3000 1.3050
Support 1.2925 1.2875 1.2825

Canadian Dollar (CAD)

Last : 1.3288

The Canadian dollar rose against the U.S. dollar on the back of stronger-than-expected housing and labour market data. On the daily chart, as long as the USD/CAD is trading above the bullish trend line, it may rise towards 1.3600, while breaking below the line could take it as low as 1.3000.

Resistance 1.3000 1.3400 1.3500
Support 1.3200 1.3100 1.3000

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.