Daily Market Review & Financial Analysis

Retail Drat Drives Up Dollar

June 17, 2019

U.S. Stock Market

Review:

U.S. stocks were mixed on Friday, as shares in chipmakers dropped after a warning from major player Broadcom, and with Chinese data pointing to the worst slowdown in industrial growth in 17 years. The Dow Jones fell by 0.2%, while the S&P 500 rose by 0.2%, and the NASDAQ lost 0.5% of its value. Technically, according to the 4-hour chart, the NASDAQ is trading near the upper Bollinger band, supported by positive overall momentum. Under these conditions, the index may climb towards 7,600 but falling towards the mid-band could take it down to around 7,300. A Fed meeting this week may provide the acid test of market expectations that the U.S. central bank could cut rates as often as three times this year.

Broadcom (AVGO)

Last : 256.93

Review:

Broadcom shares fell 5.65%, closing at $256.93, after a forecast slowdown in demand for chips. On the daily chart, the stock is holding below a bearish trend line, which may push the price down to around $230. However, breaching above the line might take it up towards $320.

Resistance 270.00 290.00 320.00
Support 250.00 240.00 230.00

U.S. Dollar (USD)

Review:

The U.S. dollar traded higher against its rivals on Friday after retail sales picked up in May, indicating a rebound in the American economy. Today, ECB President Mario Draghi will give opening remarks at the ECB Forum on Central Banking, in Portugal.

Gold

Last : 1,340

Review:

Gold traded lower on Friday, closing at $1,341.58. According to the daily chart, the metal is trading below the resistance of $1,347 but holding above the SMA. A drop back to lower areas around $1,310 could now be on the cards, although crossing above the line may lift the price towards $1,365.

Resistance 1,347 1,355 1,365
Support 1,330 1,320 1,310

Crude Oil

Last : 54.06

Review:

Crude Oil rose, closing at $54.06. On the daily chart, the commodity is holding above the support of $51.50. Crossing below this line may force the price down in the direction of $50.00, while staying in the black may change the momentum and send it up to around $55.50.

Resistance 54.70 54.90 55.50
Support 53.50 52.50 51.50

Euro (EUR)

Last : 1.1225

Review:

The euro fell 0.4% against the stronger dollar on Friday, closing at 1.1209, as better U.S. data lowered the odds of a rate cut. On the daily chart, the EUR/USD is holding below the bearish trend line and a lower WMA (Weighted Moving Average) may cause a decline to around 1.1150. Breaching above the line, on the other hand, could take the pair up towards 1.1450.

Resistance 1.1350 1.1400 1.1450
Support 1.1200 1.1175 1.1150

British Pound (GBP)

Last : 1.2594

Review:

The pound traded lower versus the dollar, closing at 1.2590. On the 4-hour chart, the GBP/USD is trading below the resistance of 1.2758. This negative momentum could lead the Cable down to around 1.2520 although crossing above the line may lift it towards 1.2900.

Resistance 1.2758 1.2830 1.2900
Support 1.2560 1.2540 1.2520

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