Daily Market Review & Financial Analysis

U.S. Rate Cut Could be Back on the Cards

July 9, 2019

U.S. Stock Market

Pivot : 2,910.00 Last : 2,975.72

Review:

U.S. stocks closed lower yesterday, due to losses in the Basic Materials, Industrials and Technology sectors. The Dow Jones Industrial Average lost 0.43%, while the S&P 500 index declined 0.48%, and the NASDAQ dropped 0.78%.

Technical comment:

(researched by Trading Central): the RSI is mixed to bullish. A ‘rising wedge’ bearish reversal pattern is taking shape, requiring caution.

Preference scenario:

Long positions above 2,910.00 with targets at 3,020.00 and 3,110.00 in extension.

Alternative scenario:

Below 2,910.00 look for further downside with 2,875.00 and 2,813.00 as targets.

Resistance 3,020.00 3,110.00 3,160.00
Support 2,910.00 2,875.00 2,813.00

Gold

Pivot : 1,380.0 Last : 1,398.6

Review:

Gold fell on Monday to close at $1,394.40, as speculation over which way the Federal Reserve will lean in terms of rate policy at the end of the month weighed on prices.

Technical comment:

(researched by Trading Central): the RSI is mixed to bullish.

Preference scenario:

Long positions above 1,380.00 with targets at 1,425.00 and 1,455.00 in extension.

Alternative scenario:

Below 1,380.00 look for further downside with 1,335.00 and 1,305.00 as targets.

Resistance 1,425.0 1,455.0 1,500.0
Support 1,380.0 1,355.0 1,305.0

Crude Oil

Pivot : 58.0 Last : 57.5

Review:

Oil prices rose ahead of Fed Chair Jerome Powell’s two-day testimony to Congress, beginning on Tuesday, with many traders betting that the central bank will order a rate cut after all in July.

Technical comment:

(researched by Trading Central): the RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 58.00 with targets at 56.95 and 56.45 in extension.

Alternative scenario:

Above 58.00 look for further upside with 58.45 and 58.85 as targets.

Resistance 58.0 58.5 58.9
Support 57.0 56.5 56.1

Euro (EUR)

Pivot : 1.1300 Last : 1.1227

Review:

The U.S. dollar slipped on Monday in Asia after jumping to a three-week high on the back of a better-than-expected jobs report that dampened expectations the U.S. Federal Reserve will cut rates aggressively to combat a slowing economy.

Technical comment:

(researched by Trading Central): The RSI advocates for further downside.

Preference scenario:

Short positions below 1.1300 with targets at 1.1180 and 1.1115 in extension.

Alternative scenario:

Above 1.1310 look for further upside with 1.1335 and 1.1355 as targets.

Resistance 1.1300 1.1410 1.1500
Support 1.1180 1.1115 1.1000

British Pound (GBP)

Pivot : 1.2660 Last : 1.2515

Review:

The pair fell on Monday, closing at 1.2515.

Technical comment:

(researched by Trading Central): the RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 1.2660 with targets at 1.2435 and 1.2300 in extension.

Alternative scenario:

Above 1.2660 look for further upside with 1.2780 and 1.2900 as targets.

Resistance 1.2660 1.2780 1.2900
Support 1.2435 1.2300 1.2115

Japanese Yen (JPY)

Pivot : 109.00 Last : 108.52

Review:

The USD/JPY pair inched down 0.1% to 108.31 with the Cabinet Office reporting that the country’s core orders fell 7.8% from April to May.

Technical comment:

(researched by Trading Central): a break below 106.70 could trigger a drop towards 105.60.

Preference scenario:

Short positions below 109.00 with targets at 106.70 and 105.60 in extension.

Alternative scenario:

Above 109.00 look for further upside with 109.90 and 110.70 as targets.

Resistance 109.00 109.90 110.70
Support 106.70 105.60 104.70

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.