By Margaret Yang
The Fed’s Yellen said the FOMC will move “cautiously” on rate hikes amid rising global risks and has “considerable” scope for stimulus last night. This statement sent US stocks to their highest levels year to date, with the S&P +0.88%, Nasdaq +1.67% and DJ +0.56%. The Dollar Index was down 0.85%. Gold regained its lustre.
10 year treasury yields dropped to 1.81% from 1.88% after Yellen’s speech. The implied probability for an April rate hike dropped to close to 0%, whereas the chance of a June hike is at 28%, down from 38% as compared to a day earlier.
Key Technical levels to watch:
- Strong resistance zone between $1240-1286, which are 50% and 61.8% Fibonacci levels
- Immediate support level: $1193-$1200
- 50 Day moving average sloping upward

- MACD dead crossed
- Immediate resistance level – 2082, 2132
- Immediate support level – 2000, 1946
- 50 day moving average is sloping upward
Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.