December 19, US stock indices closed in positive territory after Fed Chairwoman Yellen drew a positive picture of the American economy during her presentation yesterday. In her first speech after the December increase in interest rates, Federal Reserve Chairman Janet Yellen said that she sees many signs of a healthy labor market, including steady growth, and the creation of new jobs at a low rate of dismissal. But Yellen also noted that the economy is growing more slowly than expected, and the growth in labor productivity is disappointing. At the same time, trading volumes were lower in anticipation of the New Year holidays. The volume of trading on the New York Stock Exchange was at 60% of the average 30-year figure, according to FactSet. Most sectors traded higher, with the telecommunications sector leading, adding 1.1%. This is followed by real estate and technology sector, with an increase of 1% and 0.6%, respectively. The market’s response to the assassination of the Russian ambassador in Turkey was weak, so after a slight downward correction at the time of posting, the markets resumed their ascent. The Dow Jones Industrial Average finished the session with an increase of 39.65 points, or 0.20%, at the level of 19.883.06. The S & P 500 closed at 4.46 points, or 0.20%, at 2.262.53. The Nasdaq Composite Index finished the session up 20.28 points, or 0.37%, at 5,457.44. In Asia, on December 20, stock indices closed in different directions, amid positive assessments of the Japanese economy and a negative information background. The Bank of Japan kept its promise to keep short-term interest rates at the level of minus 0.1%, and the yield on 10-year government bonds is near zero. At the same time, having demonstrated a more optimistic outlook on the economy, compared with estimates on November 1, stating that the economy continues to recover moderately. The central bank signaled its conviction that the weak yen and the growth of foreign demand increase the prospects for recovery. Nikkei Stock Average rose 102.93 points, or 0.53%, ending trading at 19,494.53. The S P ASX 200 index rose 28.99 points, or 0.52%, ending trading at 5,591.08. The Shanghai Composite Index fell by -15.21 points, or -0.49%, to close at 3,102.88. In the FOREX currency market, the USD / JPY currency pair quotes resumed their growth, without having fulfilled the key support level of 116.01. Moving averages indicate a continuation of the bullish trend. In case of continued growth and breakdown of the High level of yesterday’s daily candle, the bulls may continue their upward movement in the direction of the key resistance level of 121.68. Alternative option. The RSI indicator is in the overbought zone, which indicates a possible downward correction. In the case of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, we can expect a continuation of the decline, the USD / JPY currency pair quotes, to test the key support level of 116.01.
AUD / USD quotes continue to move south. The MACD indicator continues to decline, indicating the bear potential remains intact, while moving averages point to a continuation of the bearish trend. Despite a slight correction to the top, during today’s trading, bears may continue the downward movement, to work out a key support level of 0.7144. Alternative option. In case of resumption of growth, the quotations of the AUD / USD currency pair and the breakdown of the High level, yesterday’s daily candle, the bulls may begin a correction to the top, to the key resistance level of 0.7305.
Quotes of the currency pair NZD / USD continued to show a downward movement after the breakdown of the lower boundary of the downward channel. The MACD indicator continues to decline after crossing the zero level, indicating the strength of the bears. In this situation, we can expect the continuation of the downward movement, to test the key support level of 0.6880. Alternative option. In case of resumption of growth and the return to the borders of the downward channel, the bulls may begin a correction to the north, in the direction of the key resistance level of 0.7053.
Yesterday, gold quotes could not break through the key resistance level of 1142.34 and today a downward correction began. Moving averages still show a continuing bearish trend. In case of continued decline in gold quotes and breakout of the level of yesterday’s daily candle, the bears may continue their downward movement, in the direction of the key support level of 1081.15. Alternative option. At the same time, the RSI indicator is in the oversold zone, indicating the likelihood of a bullish correction. So, in case of resumption of growth of gold quotes and breakdown, the key resistance level of 1143.43, the bulls will be able to continue the correction to the top, in the direction of the key resistance level of 1206.80.
Overview prepared by Fort Financial Services Analytics
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