Daily Market Review & Financial Analysis

New York Numbers Let Down Dollar

June 18, 2019

U.S. Stock Market

Review:

U.S. stocks traded flat on Monday ahead of the two-day FOMC meeting and after a dismal U.S. regional manufacturing report supported expectations that the Fed could deliver a rate cut as early as July. The Dow Jones rose by 0.09%, the S&P 500 was up 0.09%, and the NASDAQ added 0.65% to its value. Technically, according to the daily chart, the S&P is trading below the resistance of 2,950 and is now widely expected to drop back to around 2,750. However, breaching above the line could take the index up towards 3,050.

Facebook (FB)

Last : 189.09

Review:

Facebook shares rose 4.2%, closing at $189.09, as analysts expressed optimism over the social media giant's upcoming launch of its new cryptocurrency. On the 8-hour chart, Facebook stock is trading above the 20-day Moving Average, supported by the RSI indicator edging towards the overbought area. This should push the price up to around $200 but breaking below the SMA could start a negative trend towards $160.

Resistance 193.00 197.00 200.00
Support 180.00 170.00 160.00

U.S. Dollar (USD)

Review:

The U.S. dollar traded weakly against its rivals as manufacturing activity in and around New York posted a record drop in June, and with economic activity in the area contracting. Those numbers, coupled with weak inflation and rising jobless claims last week, increased expectations that the Federal Reserve will cut interest rates. Today, the Building Permits indicator is expected at 1.3M vs 1.29M previously.

Gold

Last : 1,339

Review:

Gold prices were little changed yesterday, closing at $1,339, after five consecutive sessions of gains as investors grew cautious despite hints of looser policy from the Federal Reserve. According to the 8-hour chart, the metal is trading above a bullish trend line. This should push the price up to around $1,355. However, breaking below the line could start a negative trend towards $1,310.

Resistance 1,344 1,349 1,355
Support 1,330 1,320 1,310

Crude Oil

Last : 51.87

Review:

Crude Oil fell, closing at $51.87, as OPEC failed to agree on dates for its next meeting. On the 4-hour chart, the commodity is holding above the support of $51.00. 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 $54.50.

Resistance 52.50 53.50 54.50
Support 51.00 50.50 50.00

Euro (EUR)

Last : 1.1224

Review:

The euro traded higher against the dollar, closing at 1.1224. On the 4-hour chart, the EUR/USD is holding above the support of 1.1205. Crossing below the line may force the price down in the direction of 1.200, while holding above it may lift the pair towards 1.1350.

Resistance 1.1250 1.1300 1.1350
Support 1.1200 1.1150 1.1100

British Pound (GBP)

Last : 1.2523

Review:

The pound traded lower versus the dollar, closing at 1.2523. On the 4-hour chart, the GBP/USD is holding below the bearish trend line, which may cause a decline to around 1.2400. Breaching above the line, on the other hand, could take the pair up towards 1.2650.

Resistance 1.2570 1.2610 1.2650
Support 1.2500 1.2450 1.2400

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