December 12, US stocks closed mixed, amid expectations of a key meeting of the Federal Reserve System. At the same time, high oil prices helped indexes stay close to maximum levels. Investors have chosen to act cautiously, in anticipation of a two-day meeting of the Federal Reserve System, which ends on Wednesday. The central bank is expected to raise the target range of the federal funds rate, by a quarter of a percentage point from 0.5% to 0.75%. Among those lagging behind during the trading session on Monday were shares of technology companies. Apple shares fell -0.6%, Facebook Inc. lost -1.6%. Amazon.com Inc. fell by -1.1%. Stock markets rose after the presidential election in early November, amid investor confidence that President-elect Donald Trump would advocate for policy, financial and environmental deregulation, as well as corporate tax cuts to stimulate faster economic growth. But in anticipation of the Fed’s decision on interest rates, the market decided to take a breather, which is quite expected. The Dow Jones Industrial Average rose 39.58 points, or 0.20%, ending trading at 19,796.43. The S & P 500 dropped -2.57 points, or -0.11%, to close at 2.256.96. The Nasdaq Composite Index fell by -31.96 points, or -0.59%, to close at 5,412.54. On December 13, Asian stock indexes traded in different directions, staying near the opening levels, as investors’ risk appetite declined significantly, on expectations that the Federal Reserve is ready to revise interest rates. The data of the National Bureau of Statistics of China on Tuesday showed that industrial production in China accelerated by 6.2% in November compared with a year earlier, compared to 6.1% growth in the previous month. This adds signs of sustainability, in the second largest economy in the world. Chinese retail sales also grew by 10.8% in November compared with a year earlier, accelerating, compared with growth in October by 10.0%. Nikkei Stock Average rose during today’s trading by 95.49 points, or 0.50%, ending trading at 19.250.52. The S P ASX 200 index dipped a little, losing -17.78 points, or -0.32%, during trading, closing at 5,545.05. The Shanghai Composite Index rose 2.07 points, or 0.07%, to close at 3,155.04. The Hang Seng Index is down by -27.42 points, or -0.12%. After the rebound from the key resistance level of 116.01, the quotes of the USD / JPY currency pair on the FOREX market resumed their decline, a reversal candle appeared on the daily chart. The MACD indicator has begun to decline, indicating the return of bears. The RSI indicator is in the overbought zone, indicating the possibility of a downward correction. Despite a slight correction to the top, in the course of today’s trading, the probability of continuing the bearish trend is quite high. In the case of a resumption of the decline, the USD / JPY currency pair quotes and the breakdown of the Low level of yesterday’s daily candle, the bears may continue the downward correction to test the key support level of 111.87. Alternative option. Moving averages, attached to the chart, are directed to the top and show the preservation of the bullish trend. In case of continued growth, the USD / JPY currency pair quotes and the breakdown of the key resistance level of 116.01, the bulls can continue the upward movement, in the direction of the key resistance level of 121.68.
Today, the AUD / USD quotes bounced off the key resistance level of 0.7505, starting the downward correction. The MACD indicator continues to grow, approaching the zero line, the intersection of which will show the superiority of the bulls. If the bulls can resume growth and break through the key resistance level of 0.7505, then we can expect to continue the upward movement in the direction of the key resistance level of 0.7728. Alternative option. In case of continued decline, currency quotations of the AUD / USD pair and breakout of the Low level, yesterday’s daily candle, the bears may continue the correction down towards the key support level of 0.7305.
Yesterday, the quotes of the NZD / USD currency pair resumed their upward movement, remaining within the boundaries of the ascending channel. The MACD indicator continues to grow, while crossing the zero line, which can be considered a bullish signal. In this situation, we can expect the continuation of bullish dynamics, to test the key resistance level of 0.7296. Alternative option. In the case of a resumption of the decline, the quotes of the NZD / USD currency pair and the breakdown of the lower boundary of the upward channel, the bears can continue the correction to the south, to test the key support level of 0.7053.
Yesterday, the gold quotes strengthened slightly, while drawing a reversal candle on the daily chart, a high wave. The RSI indicator is in the oversold zone, indicating the probability of a bullish correction. In this situation, a bullish correction can be expected, in the direction of the key resistance level of 1206.80. Alternative option. Moving averages, on the chart, show a continuing bearish trend. In the case of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, the bears can continue the downward movement, to work out the key support level of 1142.34.
Overview prepared by Fort Financial Services Analytics
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