The CAD gained versus the USD as Crude prices continued rising

US Stock Market

Stocks gained for a third session in a row on a short trading day as energy shares rose following gains in Oil prices. Expectations for increased stimulus rose as Friday’s NFP data draws near. The Dow Jones gained by 0.56%, while the Nasdaq added 0.84% and the S&P 500 gained by 0.62%. Technically, the S&P broke above the 1,360 resistance level and will remain bullish as long as it is above that level. The Dow Jones broke above the 12,800 resistance level and remains bullish. US Indices will be closed in observance of Independence Day, the 4th of July holiday in the USA.

USD Dollar (USD)

The US Dollar was mostly unchanged versus the major currencies as optimism remains in the market and the US starts its Independence Day vacation. Factory Orders came out stronger than expected with 0.7%. Today is a Bank Holiday in the US in observance of Independence Day and low liquidity is expected.

Gold

Gold gained by 1.51% closing at $1,621.80 an ounce. Gold broke above the $1,600 resistance level and reached overbought conditions according to the 4 hour RSI indicator. The trend for Gold remains bullish, but it faces a strong resistance level at $1,630. Low liquidity is likely to be seen today in Gold prices due to the Bank Holiday in the US.

Last: 1617

Crude Oil

Crude Oil rallied by 4.55% closing at $87.55 a barrel as speculation rose that the Central Banks in Europe and China will add monetary stimulus. Tensions in Iran rose following a three day military exercise in the Persian Gulf which contributed to the rise in Oil prices. Technically, Oil has reached overbought conditions according to the 4 hour RSI Indicator and a strong retracement is possible. However, the trend for Oil remains bullish as long as it remains above the $85.00 level and buying positions are favored.

Last: 87.60

Euro (EUR)

The Euro remained unchanged versus the Dollar on a low volatility trading session. Market participants are waiting for Thursday’s Bond Auctions in Spain and France to assess current market sentiment in the Euro Zone. Technically, the EUR/USD is expected to continue with the bullish momentum as long as it is above the 1.2560 support level, but only if it crosses above the 1.2750 level, the medium term trend will turn bullish. Today, the Final Services PMI is expected unchanged with 46.80 and Retail Sales are expected to rise by 0.2% compared to the 1% drop in the previous month.

Last: 1.2605

British Pound (GBP)

The Cable finished the day unchanged versus the Dollar as it continues fluctuating between the 1.5720 and 1.5650 levels. The Construction PMI came out weaker at 48.2 indicating contraction, compared with the 53.1 expansion expected. The BOE will announce its policy decision on Thursday. Technically, the GBP/USD reached a resistance level at 1.5720 and if it sustains above the 1.5600 level, the trend is likely to continue being bullish and rise above it. In the short term the pair is in a trading channel between 1.5660 and 1.5700. Today, the Services PMI is expected with 52.9 versus 53.3 previously.

Last: 1.5690

Canadian Dollar (CAD)

The commodity-linked Canadian Dollar gained versus the Greenback as Crude prices continued rising. The USD/CAD has broken below the 1.0150 support level and is currently falling towards a 1:1 rate with the U.S Dollar again. No economic data is expected today in Canada.

Last: 1.0120