Monday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||47.17||-2.42%|
The recent trends of the global markets are on again as the Dollar continues to struggle, defining the worldwide sentiment. European stocks, especially the German DAX index are still showing weakness. The Euro hit yet another 2-year high near the 1.18 level, and the EUR/USD pair is quickly approaching the crucial 1.20 zone that marked major turning points several times in the past few years. US stocks are virtually unchanged today, with the NASDAQ failing to recover from Thursday’s mini flash-crash so far. Oil breached the $50 per barrel level today in early trading, before running into resistance and bouncing lower after a very bullish week.
DAX, 4-Hour Chart Analysis
Gold is consolidating as well, below the $1275 level, well within its short-term uptrend, as the US political battles coupled with the recent tensions regarding North Korea, and the dovish change in the Fed’s rhetoric all help precious metals. The slightly better than expected Eurozone inflation data and Unemployment Rate weighs on the metals today, while giving another boost to the Euro, but a rally towards the $1300 price level still looks likely in the coming weeks. The other major currencies are less active today, with the Pound and the Aussie waiting for the rate decisions of the Bank of England and the RBA on Thursday and tomorrow respectively.
Cryptocurrencies still show a clear divergence between Bitcoin and the other major coins, as BTC is showing strength, while rest of the market is trading sideways at best. All eyes are on tomorrow’s Bitcoin-fork initiative but with the clear solution regarding the SegWit activation, the expected nervousness is not showing in the market. As there is no strong downside momentum present, the current consolidation will likely resolve in a bullish manner, especially following the deep one-month long correction that dragged the majors down by 30-60%.
BTC and ETH diverging, 4-Hour Chart Analysis
The S&P 500 is still trading near its all-time highs as it is helped by the decline in the Dollar and the positive short and long-term technical setup. Crucial support is found at 2450 while the rising long-term trendline is currently at 2380. With the earnings season still being in its prime, choppy trading is expected to continue this week, and the recent volatility in the NASDAQ could also be a warning sign, but above the 2450 level bulls remain in command.
S&P 500 Futures, 4-Hour Chart Analysis
Key Economic Releases on Monday
|16:00||US||Pending Home Sales||1.5%||1.1%||-0.8%|
Key Economic Releases on Tuesday
|6:30||AUSTRALIA||RBA Rate Decision||1.5%||1.5%|
|14:30||US||PCE Price Index||0.1%||0.1%|
|16:00||US||ISM Manufacturing PMI||56.4||57.8|
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