The Big Picture:
The Dax opened the week in positive territory, trading up +0.24%. After opening firm on Monday morning, some profit taking was seen. The USD lost ground. Against the Yen it is defending the important support at 100. Other asian currencies, such as the Korean Won, have made new highs against the USD. The Dollar also lost ground to the Euro, the pair trading in a range between 1.0822 and 1.1429 since December last year. It seems as if the FED and ECB are comfortable with this range. The main reasoning for the USD weakness is that expectations for a more restrictive interest rate policy are dwindling. Which has been cemented by week economic data. In addition, the fed will want to avoid influencing the upcoming elections by taking action.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading down at -0.09%
The DAX is in an upward trend. Main resistance at 10,500 has been broken to the upside. Next resistance is seen at 10860, support at the breakout level of 10500. We expect a continuation of the upwards trend.
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.
The USD has turned positive against the Yen. Biggest support will be found at 100.31.
The USD is in the process of forming a quadruple bottom.
Mid term, Gold is trending upwards, short term we see a sideways move. The next major resistance is at 1375, support at 1300.
Oil is trending upwards. We expect a continuation of this trend.
The S&P 500 trended higher on Monday, gaining 0,28% and reaching a new all-time high. In light of rising oil price, stock of explorational companies rose the most, e.g. Chesapeake Energy Corp at 9.56%. The Nikkei lost ground, in response to the strongest Yen, losing 0.88% today. The Yen gaining 0.72%. The Euro is up 0.13% against the USD. Gold is up 0.44% and Oil is trading down after making large gains.
Today´s numbers (CET)
11:00 Germany: ZEW Economic Sentiment
14:30 USA: Housing Starts
15:15 USA: Industrial Production, Capacity Utilization
Company news :
USA: Quarterly Earnings: Home Depot.
RoboForex Analytical Department
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