For the bulls, important resistance levels exist at 165.50 where price formed two tops on the 4-hour chart, also at 168.70 high from June 1st, and finally at 179.55 derived from a previous top last time registered in 2016.
For the bears, important support lies at 159.00 where the Fibonacci 50% retracement coincides with the MA50, also at 156.80 level which is the 61.8% retracement of Fibonacci, and finally at 154.20 where the MA100 lies.
• It’s quite a busy day ahead on the economic calendar. Later today US Consumer Price Index (CPI) and Core CPI are going to be published. US Producer Price Index (PPI) and Core PPI are also due. Other news include US Retail Sales, Empire State Manufacturing Index, Industrial Production and a few more to complete this extremely busy day.
• U.S. stocks were mixed after the close on Monday, as gains in the Technology, Consumer Services and Utilities sectors led shares higher while losses in the Basic Materials, Financials and Oil & Gas sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average declined 0.25%, while the S&P 500 index climbed 0.18%, and the NASDAQ Composite index gained 0.74%.
• The Federal Reserve could decide to raise interest rates sooner than anticipated, the Wall Street Journal reported on Monday.
According to the paper, the new projections that are due on Wednesday, following the Federal Open Market Committee meeting, could show more officials expecting an interest rates increase in 2022 or 2023, as indicators of surging inflation arrived quicker than anticipated. Additionally, the forecast is also likely to showcase a faster economic growth this year than the 6.5% that the Fed predicted in March.
• Crude oil prices settled little changed Monday after hitting their highest levels in more than two years, boosted by renewed confidence in the economic revival and an associated jump in oil demand.
West Texas Intermediate, the benchmark for U.S. crude, settled down 3 cents at $70.88, after soaring to $71.78 earlier, its highest since October 2018. Brent, the gauge for global crude, settled up 17 cents at $72.86, after surging to $73.63, its highest since May 2019.
• Gold closed at its lowest in a month after plumbing a bottom beneath $1,850 an ounce on Monday as speculators shorted the yellow metal on rising conviction that the Federal Reserve would indicate at its policy meeting this week some kind of timetable for the tapering of its asset purchases to support the U.S. economy.
The drop came after a third straight weekly loss for gold that has shaved as much as $40, or more than 2%, off Comex gold since the week ended May 21.
• At 12:30 (GMT) US Producer Price Index (PPI) m/m is expected. This measures the change in the price of finished goods and services sold by producers.
• At 12:30 (GMT) US Core Retail Sales m/m figure is due. This measures the change in the total value of sales at the retail level, excluding automobiles.
• At 12:30 (GMT) US Retail Sales m/m is also expected. This measures the change in the total value of sales at the retail level.
• At 12:30 (GMT) US Empire State Manufacturing Index coming up. This is a survey of about 200 manufacturers in New York state which asks respondents to rate the relative level of general business conditions.
• At 13:15 (GMT) US Industrial Production m/m figure to be announced. This measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
US Indices yesterday:
• Dow Jones -0.25%
• S&P 500 +0.18%
• Nasdaq +0.74%
Sources: Investing.com, forexfactory.com