U.S. Dollar Index (USDX)
The U.S. producer price index for November will be under the microscope on Friday for updates about the inflation in the country. Given that the Fed signaled that interest rates will track inflation, markets grew more cautious ahead of the reading.
The U.S. dollar recovered some of the previous day’s losses on Thursday as investors weighed the outlook for Federal Reserve policy amid simmering fears that high-interest rates could spur a recession.
The U.S. dollar index gained 0.19% to 105.33 during the Asian session. On the hourly chart the report returns between the major levels of 105.25 and 106.30. Price action shows a possible continuation to the uptrend under the condition of closing the day at or above 105.90. However, technical indicators show a start of selling pressure on the hourly chart.
On the daily chart, the overall trend remains negative and targeting the support at 104.40. However, the technical indicators show fluctuations with a heavier selling pressure build up.
Pivot Point: 105.00
| SUPPORT | RESISTANCE |
| 104.80 | 105.25 |
| 104.40 | 105.60 |
| 104.10 | 105.95 |
S&P 500 (SPX500+)
U.S. stock futures were down slightly on Thursday morning following a fifth straight day of losses for the S&P 500 as Wall Street weighed the likelihood of a recession.
Dow Jones Industrial Average futures shed 0.06%. S&P 500 futures lost 0.11%, while Nasdaq 100 futures were 0.18% lower. However, during yesterday’s regular session, the S&P 500 declined 0.19% in its fifth straight losing session, while the Dow was nearly flat.
The hourly chart shows a continuation to the downtrend while technical indicators readings are indecisive. However, the daily chart shows a possible decline towards 3,800.
Pivot Point: 3,950
| SUPPORT | RESISTANCE |
| 3,920 | 4,000 |
| 3,900 | 4,060 |
| 3,800 | 4,100 |
Spot Gold (XAUUSD)
Gold prices remained below $1,800 per ounce as metals as growing fears of a global recession drove some safe haven buying into the yellow metal. Spot gold fell 0.2% to $1,783 an ounce, while gold futures fell 0.2% to $1,795 an ounce. Both instruments rallied nearly 1% each on Wednesday, amid growing concerns over a U.S. recession.
However, investors focus this week is on the U.S. producer inflation data for November, due on Friday, to gauge the path of price pressures in the country.
The 4 hours and the daily chart show a high probability of continuing the uptrend despite the readings of the technical indicators. However, RSI and MACD show a probability of a slight drop to $1,765 per ounce.
Pivot Point: $1,785
| SUPPORT | RESISTANCE |
| 1,775 | 1,790 |
| 1,765 | 1,795 |
| 1,750 | 1,800 |
West Texas Crude (USOUSD)
Oil prices rebounded in Asian trade on Thursday after slumping to their lowest level this year in the previous session, though concerns of economic slowdowns weakening fuel demand continued to cap gains. Brent crude futures were up 0.9% at $77.87 per barrel, while U.S. West Texas Intermediate crude futures gained 1.0% to $72.75 per barrel.
Brent had settled on Wednesday below the year’s previous closing low touched on the first day of 2022, while U.S. West Texas Intermediate crude had fallen to a fresh one year low. WTI remains under selling pressure despite the speculative readings of the technical indicators. However, the movement of the WTI is more reliant on the fundamental news as technical readings are vague.
Pivot Point: 72.00
| SUPPORT | RESISTANCE |
| 71.70 | 73.50 |
| 70.50 | 73.90 |
| 70.00 | 75.20 |
