Tradesmarter HotPicks 12/20/2011 Daily Preview
Following yesterday’s conference call of EU finance ministers, an agreement was reached to boost IMF resources by 150 billion euros to keep the debt crisis at bay. However parliamentary approval was needed first, and traders were less than convinced of any major changes.
The Euro was at $1.3003, above its 11-month low of $1.2944 last week and a Monday session low of $1.2983, but down from Monday’s high of $1.3044. This follows Friday’s downgrade of Belgium by Fitch credit rating agency from Aa3 to Aa1. Resistance now lies at $1.3090, which would be a 50 percent retracement of its recent move to $1.2944 from $1.3236.
Meanwhile commodities stabilized in trading after coming under selling pressures on Monday, with three-month Copper up 0.3 percent to $7,279.50 a tonne. Oil prices rose on concerns over supply disruptions and further signs of U.S. economic growth. U.S. Crude Oil futures rose 0.5 percent to $94.34 a barrel, while Gold edged 0.3 percent higher to $1,597.30 an ounce.
The Aussie dollar stood at $0.9933, down from a session high of $0.9941 hit after the Reserve Bank of Australia cut interest rates earlier this month. Nonetheless the ASX 200 index has continued its short-term decline from resistance at the 200-day moving average. The index fell 2.4% in yesterday’s trading as its heads towards a November floor of 3973.8.
US Housing Data Due Out Today
USD Building Permits and Housing Starts are due out today at 1:30pm GMT, where traders will be looking for continued recovery in the battered housing sector. As a proxy for the broader economy, the S&P 500 index continued to slide beneath both its 50-day and 200-day moving averages. Technicals are deteriorating as overall trading volume slows towards the end of year holidays.
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