Daily Market Review & Financial Analysis

Fed’s Powell Addresses Investors’ Fears

June 5, 2019

U.S. Stock Market

Review:

U.S. stocks closed higher on Tuesday after Federal Reserve Chairman Jerome Powell said the central bank stands ready to support the domestic economy if trade wars spiral out of control. The Dow Jones fell by 1.41%, the S&P 500 went down by 1.32%, and the NASDAQ lost 1.51% of its value. Technically, according to the 1-hour chart, the NASDAQ is trading below a bearish trend line and may now fall to around 7,100. Crossing above the line, on the other hand, may take it up towards 7,250.

Adobe (ADBE)

Last : 269.52

Review:

Adobe shares rose by 3.04%, closing at $269.52. On the 2-hour chart, the stock is trading below the 20-day Moving Average with the RSI indicator below 50. This may push it down towards $257.00, although breaching above the line may lift it towards $282.00.

Resistance 272.00 277.00 282.00
Support 267.00 262.00 257.00

U.S. Dollar (USD)

Review:

The U.S. dollar rose slightly after Fed Chair Powell said the central bank would act “as appropriate” in light of slow economic growth and trade tensions. Today, the ISM Non-Manufacturing PMI is expected at 55.6 vs 55.5 previously.

Gold

Last : 1,325

Review:

Gold rose on Tuesday after the Fed reassured America that it will do whatever it takes to maintain the near-record expansion of the U.S. economy. On the 8-hour chart, however, the yellow metal is below the resistance at $1,330. Holding beneath this level may lead the price down towards $1,310, while breaching above the line could send it up to around $1,340.

Resistance 1,330 1,335 1,340
Support 1,320 1,315 1,310

Crude Oil

Last : 52.95

Review:

Oil traded lower on Tuesday, closing at $52.95. On the 1-hour chart, ‘black gold’ is trading below the Moving Average with a negative Momentum indicator. Under these conditions, a drop towards $51.50 is likely. However, breaching above the SMA could start a reversal towards $54.20.

Resistance 53.40 53.80 54.20
Support 52.50 52.00 51.50

Euro (EUR)

Last : 1.1253

Review:

The euro traded lower after Jerome Powell’s speech, closing at 1.1253. On the 1-hour chart, the EUR/USD is trading above a bullish trend line supported by a positive ADX indicator. This should push the pair up to around 1.1380 but breaking below the line could start a negative trend towards 1.1150.

Resistance 1.1300 1.1340 1.1380
Support 1.1220 1.1185 1.1150

British Pound (GBP)

Last : 1.2699

Review:

The pound traded higher, despite a disappointing British Construction PMI, and closed at 1.2699. On the 4-hour chart, The GBP/USD is trading below the resistance of 1.2770, which may take the pair down in the direction of 1.2600. Breaching above the line, on the other hand, could lift it to around 1.2800.

Resistance 1.2740 1.2770 1.2800
Support 1.2660 1.2630 1.2600

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