June 2013Blogs
Will The Friday Effect Save The Markets Again?
Daily Trading Forecasts (May 24, 2013)
There are significant reversals and corrections in the markets. In addition, there are new signals.
EURUSD: The EURUSD has been bullish in this week – moving upwards by around 150 pips. However, this is not without a sharp retracement that occurred in the middle of this week. Right now there is a new ‘buy’ signal on the chart, though there is also a strong resistance line at 1.3000, which would soon be breached.
FxPro Daily Forex Brief
Data/Event Risks
USD: Durable goods data is always a bit of a roller-coaster and coming on a Friday, could inspire more volatility than usual in FX ahead of the weekend, with London also closed on Monday for a Bank Holiday. After a 6.9% fall last month, the expectation is for a gain of 1.9% this month.
EUR: The German Ifo release is one of the more important ones of the monthly calendar. The headline index has fallen for the past two months and the market expects a steady outcome at 104.4 for the May release. A weaker number would undermine the euro, which has held up relatively well, given the generally firmer dollar environment seen through this week.
Crude Struggles In Asia Part
Oil fell to a 3-week low in a broader commodities selloff as a decline in China’s factory activity entrenched concern about weak demand, and worries about an early scale-back in US Federal Reserve stimulus haunted markets. China’s factory activity shrank for the first time in seven months in May, weighing on oil as well as copper, for which China is the world’s top consumer. Brent crude fell $ 1.22 to $ 101.20 a barrel after dropping to $ 100.64, the lowest since May 2.
All Eyes Should Be On Big Energy
The important energy sector accounts for roughly 16.0 percent of the S&P 500 Index. Today, most of the leading energy stocks are declining lower at the start of the session. Exxon Mobil Corp (NYSE:XOM) is the leading stock in the sector. This stock also has the largest market capitalization in the stock market at $406 billion, so it is safe to say that this stock carries a lot of weight in the markets. Day traders should watch for three important support levels on XOM at $91.00, and $90.45, and $89.43. These are all levels where XOM stock could bounce intra-day.