Apple Stock on Focus This Monday
GBPUSD Bearish Momentum | 100 SMA Resistance
GBPUSD resumed its drop at the end of last week, as bearish momentum returned. In addition, the US dollar gained support from the results of the Swiss gold referendum, which led to losses for the precious metal and a rally for the safe-haven gold hedge.
Further selling momentum for GBPUSD could lead to a drop below the current lows at the 1.5550 minor psychological support. This might lead to a move until the 1.5500 handle or until the 1.5450 minor psychological level later in the week
Event risks for this trade today include the UK manufacturing PMI and the US ISM manufacturing PMI. Both reports are expected to show a slowdown in industry expansion, which might still favor the US dollar if risk aversion takes hold. Later on, the BOE interest rate decision and US NFP release might have a bigger impact on GBPUSD movement.
Another pullback to the falling trend line on the 1-hour and 4-hour time frames, which are around the 100 SMA resistance, might still be possible if buying pressure returns. Price could still test resistance at the 1.5650-1.5700 psychological levels before resuming its drop, as traders might be keen to short at better prices.
EURUSD Range-Bound Movement | Support at 1.2360
EURUSD is showing downside momentum, but support at the 1.2360 previous lows seems to be holding strongly. This could lead to a bounce back to the top of the current short-term range around the 1.2550 minor psychological level and a potential upside break if buying pressure is strong enough.
break above the 1.2550 mark could lead to the confirmation of a double bottom forex reversal signal, which might mean as much as 200 pips in gains for EURUSD. This could push the pair up to the 1.2700 area of interest once more.
Data from the euro zone came in line with expectations last Friday, as inflation and unemployment figures hit the mark. This was enough to spark a short-term euro relief rally against most of its forex counterparts. However, the upcoming reports for today could lead to a range breakout for this pair.
The US is set to print its ISM manufacturing PMI, which might indicate a slight slowdown in industry expansion. If so, EURUSD could make a stronger bounce for the day, but a higher than expected reading or labor component might lead to a downside break of 1.2360 support for EURUSD.
Short-Term Consolidation on AAPL | Sustained Buying Momentum to 120.00
AAPL stocks are starting to consolidate for now, after days of showing strong buying momentum. Analysts are still expecting prices to hit the $120/share level sooner or later this year, as the pick up in sales for the holiday season could keep prices afloat.
In addition, the improvement in sentiment for the US economy is adding support to equities, including AAPL stocks. Sales of iPhones for the Black Friday sales and for the Christmas season could keep share prices heading further north until the end of the year.
For now though, AAPL stock is consolidating in a triangle pattern on the shorter-term time frames and this looks like a bullish flag on the longer-term charts. A break past the $119/share level could lead to a move to $120/share within the week, especially if the US non-farm employment report shows a strong figure.
Other US reports that might come in strong this week could also lead to sustained buying pressure for AAPL shares, as economic improvements could ensure stronger demand for Apple products even until early next year. On the other hand, hints of an economic slowdown could lead to a large correction for Apple shares.