Markets Roundup by Scandinavian Capital Markets

[SCM Forex]

The Euro (EUR) inched higher on Monday, increasing the price of EURUSD to more than 1.2350 following the release of some key economic news. The technical bias remains slightly bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the EURUSD pair is being traded near 1.2368. A support can be seen around 1.2215, an immediate trendline support area ahead of 1.2053, the 50% fib level support and then 1.2000, the pychological level. A break and daily closing below the 1.2000 support area shall trigger renewed selling interest, validating a move towards the 1.1554 level which is the low of the last major downside move.

On the upside, the pair is likely to face a hurdle near 1.2412, the high of yesterday (Tuesday) ahead of 1.2537, a major horizontal resistance area and then 1.2600, the psychological level. The technical bias shall remain bullish as long as the 1.2000 support area is intact.

US Industrial Production

U.S. industrial production surged in February, boosted by strong increases in output at factories and mines, but the economic outlook for the first quarter was dimmed by a larger-than-expected plunge in home building last month.
Industrial production jumped 1.1 percent last month, the Federal Reserve said on Friday. That was the largest increase in four months and followed a 0.3 percent decline in January. February’s increase beat economists’ expectations for only a 0.3 percent gain.

Manufacturing output vaulted 1.2 percent, the biggest gain since October, after falling 0.2 percent in January. Production of primary metals, which include steel and aluminum increased 0.5 percent last month after jumping 1.5 percent in January.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy as bears are apparently gaining momentum.

 

[SCM Forex]

The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of AUDUSD to more than 0.7700 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7732. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.

US Retail Sales

U.S. retail sales fell for a third straight month in February as households cut back on purchases of motor vehicles and other big-ticket items, prompting analysts to downgrade their first-quarter economic growth forecasts.

The Commerce Department said retail sales slipped 0.1 percent last month. January data was revised to show sales dipping 0.1 percent instead of falling 0.3 percent as previously reported. It was the first time since April 2012 that retail sales have declined for three straight months.

Economists polled by Reuters had forecast retail sales rising 0.3 percent in February. Retail sales in February increased 4.0 percent from a year ago.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

[SCM Forex]

The Great Britain Pound (GBP) has printed low against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to Less than 1.4100 following some key economic releases. The technical bias shall however remain bullish because of a higher high in the current upside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded around 1.4141. A support can be noted around 1.4039, an immediate horizontal support ahead of 1.4000 the psychological number and then 1.3864, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 1.4348, an immediate horizontal resistance level ahead of 1.4400, the psychological level and then 1.4414, the high of the last major upside rally as shown in the chart displayed above. The technical bias may turn bearish as long as the 1.4414 resistance area intact.

US Housing Starts

the Commerce Department said housing starts declined 7.0 percent to a seasonally adjusted annual rate of 1.236 million units as a plunge in the construction of multi-family housing units offset a second straight monthly increase in single-family projects.

Economists polled by Reuters had forecast housing starts falling to a 1.290 million-unit rate. Permits for future home building decreased 5.7 percent to a rate of 1.298 million units in February.

While the volatile multi-family housing segment accounted for the decline in home building last month, the broader housing market appears to be slowing. Sales of new and previously owned homes have slumped in recent months as a dearth of properties boosted prices, sidelining some first-time home buyers.

Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

[SCM Forex]

The New Zealand Dollar (NZD) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of NZDUSD to less than 0.7250 following some key economic releases. The technical bias shall remain bearish because of a lower high in the recent upside move.

NZD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7207. A support can be noted around 0.7135, an immediate trendline support ahead of 0.7100 the psychological number and then 0.7053, another key horizontal support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.7377, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.

US Jobless Claims News

The number of Americans filing for unemployment benefits rose just marginally last week, suggesting strong job growth in March that should underpin consumer spending.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 229,000 for the week ended March 17, the Labor Department said on Thursday. Claims dropped to 210,000 during the week ended Feb. 24, which was the lowest level since December 1969.

Economists polled by Reuters had forecast claims dipping to 225,000 in the latest week. Claims have now been below the 300,000 threshold, which is associated with a strong labor market, for 159 straight weeks. That is the longest such stretch since 1970, when the labor market was much smaller.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.