September 21 on Wednesday, US stocks rose, ending near the highs of the day, after the decision of the Federal Reserve to not increase key interest rates. Yesterday, the US Federal Reserve, left its interest rate unchanged, in anticipation of new evidence of sustainable economic growth, while predicting the likelihood of an increase in rates until the end of the year. Three out of ten Fed representatives voted for the rate hike in September, these are Esther George, Kansas City Fed President, Cleveland Loretta Fed President, Master and Erik Rosengren, Boston Fed Chairman. “Our decision does not reflect a lack of confidence in the economy,” Fed Chairman Yellen said at the beginning of her press conference, “we chose to wait for new evidence of progress in terms of achieving goals.” The Dow Jones Industrial Average jumped 163.74 points, or 0.90%, to close at 18.293.70. The S & P 500 finished trading up 23.36 points, or 1.09%, at 2.163.12. The Nasdaq Composite Index eventually grew by 53.83 points, or 1.03%, to the level of 5,295.18 recognizable new record for the technically heavy index, surpassing its close of 5283.93. On September 22, Asian stocks rose after the Federal Reserve left interest rates in the United States unchanged and refrained from specifying the timing of a likely increase, weakening the dollar and raising commodity prices. The Japanese market is closed today, there is the Autumn Equinox Day. The Australian S & P / ASX 200 grew by 34.90 points, or 0.65%, ending the session at 5,374.46. The Shanghai Composite rose 16.44 points, or 0.54%, to 3.042.31. Hang Seng is growing at 66.41 points, or 0.28%.
After yesterday’s volatile session in USD / JPY, the bears came out victorious and, as a result of the day, managed to consolidate below 101.01. After that, there is a possibility of continuing reduction of quotations, for testing the key support level of 98.98. At the same time, now we are seeing a correction to the top, which fits into the overall technical picture of the bear market. Bulls may well play some of the positions lost yesterday, rising to the key resistance level 101.01.
Today, the AUD / USD currency pair quotes continue to show growth and there is no reason to talk about a reversal yet. Probably, the bulls will be able to continue moving northward, to the key resistance level of 0.7719. Alternative option. In the case of a resumption of the decline and breakdown of the opening level, today’s daily candle, we can expect the continuation of the downward movement, to work out the key support level of 0.7490.
Today, the NZD / USD pair has slightly declined, after the announcement, about maintaining the rate of the Central Bank of New Zealand at 2.00%. As a result of the decline, on the H4 chart, a candle pattern formed, a bearish absorption. After that, there is a possibility of a continuation of the decline, for testing a key support level of 0.7296.
Alternative. In the case of the resumption of growth and the breakdown of the high level of yesterday’s daily candle, we can expect the upward movement to continue, to test the key resistance level of 0.7416.
Today, gold prices slipped a bit, showing a correction, after a sharp increase during yesterday’s trading. Despite the correction, after yesterday’s breakdown and consolidation of gold quotes above the level of 1329.62, there remains the likelihood of continued growth of quotations, to test the key resistance level of 1357.64. At the same time, in case of continued decline, breakdown and consolidation of quotes below the level of 1329.62, we can expect the downward correction to continue in the direction of the key support level of 1304.32.
Review prepared by Fort Financial Services Research Department. Follow our publications