Daily Market Review — 24/05/2016
Traders should pay attention to Germany’s ZEW Economic Sentiment.
The pair trended negatively during the first half of yesterday’s trading day as the majority of Eurozone manufacturing and service PMIs failed to impress. However, the pair did receive support with FOMC member Bullard noting that slower than expected US economic development may still prevent a rate hike. Today’s trading dynamics should be impacted by the German ZEW Economic Sentiment, scheduled for 9:00 GMT.
Resistance: 1.1242, 1.1290, 1.1351
Support: 1.1187, 1.1149, 1.1122
Yesterday the pair trended downwards as prices fell on the commodity exchanges. This morning so far, RBA Governor Glenn Stevens noted that despite low-level inflation the economy is slowly recovering. He additionally stated that the reason for the recent display of poor economic indicators was the slowing Chinese economy, Australia’s biggest trading partner. Currently, the AUD/USD is situated at 0.7161 (-0.87%). Further trading dynamics will depend on today’s U.S. Richmond Manufacturing Index, scheduled for 14:00 GMT.
Resistance: 0.7250, 0.7348, 0.7446
Support: 0.7184, 0.7111, 0.7040
European stock exchanges spent yesterday trending negatively as shares fell in the oil companies. Additionally, weak statistics on business activity in most of the Eurozone countries put further pressure on the stock markets. Today’s trading dynamics should depend upon on Germany’s ZEW Economic Sentiment scheduled for 9:00 GMT.
Resistance: 9884.49, 9956.43, 10025.81
Support: 9803.55, 9735.46, 9672.98
Crude Oil Futures
Crude oil prices fell by 1% yesterday as a supply glut continues to knock down prices. This was further compounded as Iran’s deputy oil minister stated that the country is not ready to freeze production volumes. This greatly reduces the likelihood that OPEC will be able to find common ground at the upcoming June 2 meeting in Vienna. Today’s trading dynamics will depend on the weekly U.S. API crude oil stock data, scheduled for publication at 20:35 GMT.
Resistance: 48.22, 48.70, 49.25
Support: 47.31, 46.85, 46.33