The Dollar jumped on Friday as a strong American labor market report raised expectations that the Federal Reserve will increase interest rates by mid-year. Wall Street initially rose and European equities hit a seven-year high on the Labor Department report, but stocks sold off in the afternoon on renewed nervousness over Greece. Oil futures bounced up from near-six-year lows, and Gold fell more than 2%. The calendar is light this week which puts into special focus possible headlines on Greece's debt talks.
The Dollar advanced against major currencies on Friday after data showed solid U.S. jobs growth and a strong rebound in wages in January.
EURUSD closed down at $1.13205, in our platform, Friday.
Wages increased with a year-on-year gain to 2.2%, raising expectations the Fed may have less freedom in citing low inflation as a reason to hold off on hiking rates.
Today, expect the market to pay extra attention to Germany's merchandise trade.
Pivot 1.1415
Support 1.1305 , 1.127 , 1.122
Resistance 1.15 , 1.1465 , 1.1415
Scenario 1: Short positions below 1.1415 with targets 1.1305 & 1.127 in extension.
Scenario 2: Above 1.1415 look for further upside with 1.1465 & 1.15 as targets.
Scenario 2: Above 1.1415 look for further upside with 1.1465 & 1.15 as targets.
Comment: Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. The pair has broken below its support and remains under pressure.
The Canadian Dollar weakened on Friday after robust U.S. jobs data impressed the market more than a stronger-than-expected Canadian employment report, while a downgrade of Greece's credit rating also fueled U.S. currency buying.
USDCAD finished up at C$1.25221, in our platform, Friday.
Today, expect the market to move with Canada's housing starts.
Pivot 1.242
Support 1.242 , 1.2375 , 1.231
Resistance 1.2595 , 1.264 , 1.269
Scenario 1: Long positions above 1.242 with targets 1.2595 & 1.264 in extension.
Scenario 2: Below 1.242 look for further downside with 1.2375 & 1.231 as targets.
Comment: Technically the RSI is above its neutrality area at 50.
Gold fell more than 2% on Friday as Global stock markets and the Dollar rose on stronger-than-expected U.S. jobs data.
Spot Gold closed down at $1,236.02, in our platform, Friday.
Gold is been pressured by the elevated speculative positions, hawkish Fed and stronger Dollar, while the lowering of the reserve requirements in China, negative yields in most European countries and uncertainty in Greece lend support.
Expect the market to pay extra attention to the early morning China consumer and producer price index.
Pivot 1247
Support 1224 , 1217.4 , 1204
Resistance 1247 , 1256 , 1267
Scenario 1: Short positions below 1247 with targets 1224 & 1217.4 in extension.
Scenario 2: Above 1247 look for further upside with 1256 & 1267 as targets.
Scenario 2: Above 1247 look for further upside with 1256 & 1267 as targets.
Comment: As long as 1247 is resistance, look for choppy price action with a bearish bias.
OIL/USD
Oil extended gains on Friday to end the biggest weekly advance in almost four years as signs of a drilling slowdown in the U.S. bolstered speculation that companies are cutting back Crude production amid a global glut.
WTI futures closed up at $52.03, in our platform, Friday.
The market is beginning to give greater weight in its pricing to the likelihood that shale Oil production in the U.S. will be cut over coming months.
Expect the market to pay extra attention to the early morning China consumer and producer price index.
Pivot 50.2
Support 50.2 , 49 , 47.4
Resistance 54.3 , 56 , 58
Scenario 1: Long positions above 50.2 with targets 54.3 & 56 in extension.
Scenario 2: Below 50.2 look for further downside with 49 & 47.4 as targets.
Comment: The RSI lacks downward momentum.
DOW/USD
U.S. stocks finished lower Friday as investors minimized a strong jobs report, which had provided a lift earlier in the day, and turned to fresh concerns about Greece.
The Dow Future closed down at 17,766, in our platform, Friday.
The worries were ignited midday Friday after S&P's downgraded the country's long-term sovereign-debt rating to B-minus from B. In addition, a Euro zone official said Greece faces a Feb. 16 deadline to apply for an extension of its bailout program.
Expect the market to pay extra attention to the early morning China consumer and producer price index.
Pivot 17,865
Support 17,865 . 17,700 . 17,560
Resistance 18,070 . 18,220 . 18,320
Scenario 1: Long positions above 17,865 with targets @ 18,070 & 18,220 in extension.
Scenario 2: Below 17,865 look for further downside with 17,700 & 17,560 as targets.
Scenario 2: Below 17,865 look for further downside with 17,700 & 17,560 as targets.
The pound edged higher against the U.S. dollar on Monday, as sentiment on the greenback remained vulnerable ahead of the Federal Reserve’s highly-anticipated policy statement on Thursday.
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