Daily Market Review & Financial Analysis

Stocks Up Amid Talk of Delay to Mexican Tariffs

June 7, 2019

U.S. Stock Market

Review:

Wall Street finished in the green amid reports that tariffs on Mexican imports might be delayed. The Dow Jones rose by 0.71%, the S&P 500 was up 0.61%, and the NASDAQ added 0.53% to its value. Technically, according to the 8-hour chart, the Dow is trading near the upper Bollinger band, supported by a positive Momentum indicator. Under these conditions, the index could rise towards 26,000, although falling towards the mid-band may push it down to around 25,000.

McDonald's (MCD)

Last : 203.06

Review:

McDonald’s shares rose 1.46%, closing at $203.05. On the 4-hour chart, the stock is positive, trading above the bullish trend line with the RSI above 50. As long as is stays above the trend line, we might see a rise towards $210.00 but crossing below the line may force it down in the direction of $190.00.

Resistance 205.00 207.00 210.00
Support 200.00 197.00 195.00

U.S. Dollar (USD)

Review:

The U.S. dollar lost out to the other major currencies ahead of today’s NFP report, with traders increasingly concerned over trade disputes. Unemployment Claims came in at 218K, the same as last week and slightly higher than expected. Today, the Non-Farm Employment Change and the Unemployment Rate are expected at 180K and 3.6% respectively.

Gold

Last : 1,335

Review:

Gold rose 0.35%, closing at $1,335 an ounce. According to the 4-hour chart, the metal is trading above the 20-day average line with the MACD above 0. Holding above the average may lead the price to around $1,350, while breaking below may change the momentum and start a retracement towards $1,280.

Resistance 1,340 1,345 1,350
Support 1,300 1,290 1,280

Crude Oil

Last : 52.99

Review:

Crude Oil rose 2.53%, closing at $52.99 a barrel. On the daily chart, the commodity is holding above the support of $51.15. Crossing below this level may drop the price towards $50.00, while holding above it may change the momentum and power ‘black gold’ up to around $55.00.

Resistance 54.00 55.00 56.00
Support 52.00 51.00 50.00

Euro (EUR)

Last : 1.1279

Review:

The euro rose 0.52% versus the dollar, closing at 1.1279, as interest rates remained unchanged at 0.0%. On the 4-hour chart, the EUR/USD has breached the resistance of 1.1265 with the RSI above 50, which could deliver a rise towards 1.1350. However, breaking below the line could push the pair down to around 1.1200. Today, the German and French Industrial Production figures are expected at -0.4% and 0.3% respectively.

Resistance 1.1320 1.1360 1.1400
Support 1.1240 1.1200 1.1170

British Pound (GBP)

Last : 1.2695

Review:

The pound rose 0.08% versus the dollar, closing at 1.2696. On the 4-hour chart, the GBP/USD is below the resistance of 1.2750 with the Stochastic RSI below 50. Should the pair succeed in breaching the resistance, we might see a rise towards 1.2800, but failure to do so may send it down to 1.2600. Today, the Halifax HPI is expected to come in at -0.2% vs. 1.1% previously.

Resistance 1.2730 1.2770 1.2800
Support 1.2650 1.2600 1.2570

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