News & Analysis

Stocks recover Dow Jones adds 410 – FTSE regains 84; 1313.47 supports Gold; USD stalls – AUDUSD back above .7850

Feb 13, 2018 | Daily Market Outlook

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US markets – recovered on Monday as buyer confidence continued from Friday’s recovery. The Dow Jones closed 410.37 higher. The S&P500 added 36.45 points and the NASDAQ closed 107.47 points higher. Shares of Amazon, Bank of America and Apple — which fell sharply last week — all rose by at least 2.5 percent. JJ Kinahan, chief market strategist at TD Ameritrade, said the market is trying to find its balance point after last week’s wild swings. “There’s more volatility ahead. These things take a few weeks to get worked out,” he said. We’re seeing potential resistance above at 24,815 traders should keep an on how buyers react if this level is reached.

Oil – added 81 cents on Monday closing just below $60 a barrel. OPEC forecast world oil demand would grow faster than expected in 2018, but higher prices will encourage the United States and other non-member producers to pump more. The drivers for higher oil prices are “unlikely sustainable,” Goldman Sachs said in a research note. We’ve seen a gap lower on this morning’s open. Price dropping back to $59.15, support zone still stands at 58.80.

European markets – moved higher Monday following positive leads. The FTSE closed 84.63 points higher the DAX added 175.29 and the CAC closed 60.85 points higher. Chemicals was one of the top performing sectors Monday, closing up 1.56 percent — after several rating upgrades boosted sector sentiment. Heineken was among the worst performing stocks after reporting 2017 results. 12,165 is the low we’re watching on the GER30. 7221 is showing short-term resistance on the UK100.

Forex – The USD had a few mini come back but finished lower. The EUR and AUD making good gains. The AUDUSD climbed back above .7850 posting its 2nd higher day. The USD dropped to the JPY but continues to hold above 108.47 support low. A break of this level could be significant! Risk picked up the JPY, the EUR, AUD making solid gains while the GBP just edged higher. 150.15 continues to offer GBPJPY buyers support. The USDCAD threatened to break lower but sellers failed to get momentum going as price stalled 1.2558 previous high. Gold – support seen from last week held firm and gave buyers a springboard, price rallied $7.67 higher testing 1326.80 at one stage before sellers trimmed gains. Buyers have $1323.20 to beat to keep this counter-rally going today.

USDJPY – appears to be in short-term balance as neither sellers of buyers can get an upper hand. The key level we’re watching is 108.47. This level continues to repel seller advances. It could turn into a rally point but a break could see a fast test lower, potentially back into the 107 handle.

Good trading from Eightcap.

Sources; CNBC.  All times are AEDST

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