December 27, holidays in Catholic countries continue in Australia, Canada – Boxing Day, in New Zealand, UK, Hong Kong – Christmas. On Friday, December 23, US stocks closed slightly up, supported by rising oil prices. While investors were not willing to take risks during the Christmas holidays, which significantly reduced trading volumes in the market. Bullish sentiment prevailed in the market, after winning the US presidential election, Donald Trump. Investors expect that President-elect Donald Trump will advocate a policy of reducing corporate taxes and deregulation, as well as rising infrastructure and military spending, which will accelerate economic growth. The Dow Jones Industrial Average Index rose 14.93 points, or 0.07%, to 19.933.81. The S & P 500 rose 2.8 points, or 0.13%, to 2,263.76. The Nasdaq Composite Index added 15.27 points during the session on Friday, or 0.28%, to close at 5,462.69. Asian stock indices, traded in different directions, after the Christmas holidays, while maintaining, not high trading volumes. Oil prices remain strong, – investors expect a decline in production by 2%, OPEC countries and affiliated countries outside the cartel. Starting in January, the majority of OPEC members and 11 other manufacturers who are not members of the organization will begin to reduce their production, as part of an agreement signed in late November. The reduction of about 1.8 million barrels per day will be carried out in several stages. Despite the weak statistics, the Japanese market strengthened slightly, mainly due to the weak yen. The weakened, recently yen, continues to maintain high demand for shares of exporters. More than others, automaker stocks are rising. Japan’s household spending index fell by -0.6% in November, while analysts predicted a growth of 0.4%. The unemployment rate in Japan in November was 3.1%, while the forecast was 3.0%. The Japanese Nikkei Stock Average rose 6.24 points, or 0.06%, ending the session at 19,403.06. The Shanghai Composite Index lost -7.91 points during trading, or -0.25%, closing at 3,114.66.
On December 27, in the FOREX currency market, the USD / JPY currency pair quotes remained almost unchanged, showing very low volatility. The MACD indicator continues to decline, indicating the bears are returning to the market. The RSI indicator is in the overbought zone, indicating the possibility of a downward correction. In this situation, the bears can start a correction to the south, to practice a key support level of 116.01. Alternative option. Moving averages point to a continuation of the bullish trend. So, in the event of a resumption of growth, the USD / JPY currency pair quotes and a breakout level of the intermediate 118.60, the bulls can continue the upward movement, in the direction of the key resistance level of 121.68.
Today, quotes for the AUD / USD currency pair have resumed their growth, and have not fulfilled the key support level of 0.7144. The MACD indicator continues to decline, indicating the bear potential remains, and moving averages point to a continuation of the bearish trend. At the same time, the RSI indicator is in the oversold zone, indicating the possibility of correction to the top. In this situation, it is worth considering two scenarios. In case of continued growth, the quotations of the AUD / USD currency pair and the breakdown of the High level, Friday’s day, the bulls can continue the correction to the top, to test the key resistance level of 0.7305. While in the case of a resumption of the decline and breakdown of the Low level, Friday’s daily candle, the bears can continue the downward movement, to test the key support level of 0.7144.
Quotes of the currency pair NZD / USD, after a false puncture, the key support level of 0.6880, strengthened slightly. The RSI indicator is in the oversold zone, indicating the possibility of correction to the top. In this situation, bulls can start a correction to the top and in the case of a return of quotations to the boundaries of the ascending channel, we can expect continued movement to the faith in the direction of the key resistance level of 0.7053. Alternative option. The MACD indicator continues to decline, showing the potential of bears. In case of resumption of decline and re-breakdown of the key support level of 0.6880, the bears can continue the downward movement, to work out the key support level of 0.6674.
Quotes of gold continued to rise during today’s trading, when it broke through and consolidated above the key resistance level of 1142.34. The RSI indicator is in the oversold zone, indicating that the bullish correction can continue, the MACD indicator has begun to grow, indicating a return to the bull market. In this situation, we can expect the continuation of the bullish dynamics, in the direction of the key resistance level of 1206.80. Alternative option. Moving averages are pointing to an ongoing bearish trend. In the case of resuming decline in quotations of gold and return below the level of 1142.34, the bears can start a downward correction to test the local minimum of 1081.15.
Overview prepared by Fort Financial Services Analytics