UFX Daily Forex Currency Trading News 21-March-2016

We begin with the US Stock Market – Wall Street finished in the green on Friday as the major indices continued to rebound from the downturn at the start of the year. The Dow Jones rose by 0.69%, the S&P 500 by 0.44%, and the NASDAQ added 0.43% to its value. Technically, according to the 4-hour chart, as long as the Dow Jones is holding above the bullish trend line, it is expected to rise 17,850. However, breaking below the trend line could lead the index to around 17,100. Tesla shares rose by 2.81% closing at $232.50 a share.

Turning to the pairs now, the U.S. Dollar traded higher against most major currencies on Friday, recovering from five-month low as investors bought back greenbacks following an aggressive selloff earlier in the week. Today, the US Existing Home Sales report is expected at 5.32M vs 5.47M previously.

The euro fell versus the dollar ending a three-day winning streak. Technically, according to the daily chart, the EUR/USD is holding below the resistance at 1.1340. Maintaining below this resistance may take the pair towards 1.0800 while breaching above the resistance may lead it to around 1.1600.

The Pound slipped versus the dollar pulling away from a one-month peak. Technically, according to the daily chart, the pair is trading bullish near the upper band of the Bollinger Bands indicator. Maintaining this condition may continue the bullish trend towards around 1.4700. However, dropping towards the lower band may start a retracement towards 1.4050.

Finally in commodities, Gold fell on Friday, closing at $1255 an ounce. According to the 4-hour chart, gold is trading in as ascending triangle pattern. Breaking below the lower side of the pattern could lead the gold towards $1180 while crossing above the upper side may take it to around $1300.

Crude Oil dropped, closing at $39.39 a barrel. Technically, according to the Daily chart, oil is trading bullish above the 20-day Moving Average line with the RSI above the 50 level. Maintaining these conditions may lead the oil towards $48.00. However, breaking below the Moving Average line may send oil back to $30.00.