Wall Street ended flat yesterday, as investors showed concerns about fully-extended share prices after a five-week rally. The Dow Jones rose by 0.12%, the S&P 500 by 0.10%, and the NASDAQ added 0.28% to its value.
The U.S. Dollar traded higher against most major currencies despite disappointing U.S. housing data, and after Federal Reserve officials hinted at a interest rate hike at the bank’s upcoming meeting in April.Today, the US Manufacturing PMI is expected at 51.6 vs 51.0 previously.
In commodities now, gold finished lower on Monday, closing at $1244 an ounce, but Crude Oil rose, closing at $41.66 a barrel. Technically, according to the daily chart, oil is holding below the resistance at $42.00. Staying under this level could lead it towards $35.00, while crossing above the resistance may take it to around $48.00.
Turning to the pairs, the euro fell versus the dollar, as the greenback continued to recover. Technically, according to the 4-hour chart, the EUR/USD is trading above the support line at 1.1220. Holding above this support may take the EUR/USD towards 1.1350, while breaking below the support could lead the pair to around 1.1000.
The Pound weakened on Monday versus the dollar, closing at 1.4366. Technically, according to the 4-hour chart, the GBP/USD is trading below the 20-day Moving Average and below the parabolic SAR indicator. Maintaining these conditions could lead the GBP/USD to around 1.4100, while breaching the Moving Average may take the pair towards 1.4600.
The Yen weakened versus the dollar in quiet trade, as no major U.S. or Japanese economic reports were released on Monday. Technically, according to the daily chart, as long as the pair is trading above the 111.00 support level, it is expected to rise to around 115.00, while breaking below this level could lead the USD/JPY towards 106.00.