Daily Market Review & Financial Analysis

Uninspiring Jobs Data Dulls the Dollar’s Edge

June 10, 2019

U.S. Stock Market

Review:

U.S. stocks traded higher after May’s weak jobs report increased speculation that the Federal Reserve will cut interest rates. The Dow Jones rose by 1.02%, the S&P 500 was up 1.05%, and the NASDAQ added 1.66% to its value. Technically, according to the 4-hour chart, the NASDAQ is trading above the support at 7,290. As long as this remains the case, a rise towards 7,550 can be expected. However, breaking below the line may lead to a small retracement back to around 7,100.

Amazon (AMZN)

Last : 1,803.97

Review:

Amazon shares rose 2.83%, closing at $1,803.97. On the 1-hour chart, the stock is holding below a bearish trend line, which may push the price down to around $1,700. However, with the ADX indicator above 20, it is widely expected to breach above the line soon and continue climbing towards $1,900.

Resistance 1,830.00 1,870.00 1,900.00
Support 1,770.00 1,740.00 1,700.00

U.S. Dollar (USD)

Review:

The U.S. dollar traded lower against its rivals on Friday after the American economy added fewer jobs than expected last month. The Non-Farm Employment Rate Change came out at 75K vs 177K forecast and the Unemployment Rate was unchanged at 3.6%.

Gold

Last : 1,340

Review:

Gold rose, closing at $1,340, boosted by bets that the Federal Reserve will have to cut interest rates after weak U.S. jobs data for May. According to the daily chart, Gold is trading below a very strong resistance line at $1,347. It is now expected to drop back to around $1,310, although crossing above the line may lift it towards $1,365.

Resistance 1,347 135 1,365
Support 1,330 1,320 1,310

Crude Oil

Last : 54.06

Review:

Crude Oil rose, closing at $54.06, after Saudi Arabia announced OPEC’s readiness to extend its production cut beyond June, and as Wall Street rallied. On the 4-hour chart, Oil is trading below the resistance at $54.90. Under current conditions, it could drop back to around $53.20. However, with the RSI indicator above 50, many traders expect it to breach above the line and rise towards $55.50.

Resistance 54.70 54.90 55.50
Support 53.70 53.40 53.20

Euro (EUR)

Last : 1.1332

Review:

The euro traded higher versus the dollar, closing at 1.1331. On the daily chart, the EUR/USD is holding just below the bearish trend line and should continue falling to around 1.1200. Breaching above the line, on the other hand, could power it up towards 1.1450.

Resistance 1.1350 1.1400 1.1450
Support 1.1300 1.1250 1.1200

British Pound (GBP)

Last : 1.2735

Review:

The pound traded higher versus the dollar, closing at 1.2735. On the daily chart, if the GBP/USD breaks below the bottom line of the current channel, it might tumble to around 1.2600, while staying above it should push the “Cable” back up to around 1.2900.

Resistance 1.2760 1.2850 1.2900
Support 1.2700 1.2650 1.2600

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. 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.