January 17, US stock indexes fell, as investors prefer to remain cautious, after elected US President Donald Trump expressed concern about the strengthening of the dollar. In an interview with the Wall Street Journal published on Friday, Trump said that the US currency has strengthened too much recently, while China keeps the yuan low, which he believes does not allow American companies to compete with the Chinese. Investors took Trump’s comments as a sign that he could not oppose a series of increases in interest rates and a stronger dollar, as was originally predicted. Investors concluded that during the election campaign, Trump more than once, during his speeches, demanded that Yellen raise interest rates. Obviously, the markets are still seeking clarity on policy and economic plans, the new administration of Donald Tram. The president of the Federal Reserve Fund of New York, William Dudley, decided to reduce the role of inflation in monetary policy, saying that inflation is not a problem, and a strong dollar will limit the ability of corporations to raise prices. The Dow Jones Industrial Average fell -58.96 points, or -0.30%, to the level of 19,826.77. The S & P 500 fell by -6.75 points, or -0.30%, to 2,267.89. The Nasdaq Composite Index lost -35.39 points, or -0.63% during trading, ending the session at 5,538.73. On January 18, most Asian stock markets are trading higher, despite lingering concerns about the economic impact of President-elect Donald Trump’s policy, which will be sworn in on Friday. At the same time, investors positively perceived the attempt of Chinese President Xi Jinping to speak out in defense of world trade, on Tuesday, at a meeting in Davos. Xi Jinping unexpectedly defended orthodox economic principles, including globalization. The weakening of the yen during Asian trading, was able to stop the fall of the Japanese market, allowing the session to end on a positive territory. The Nikkei Stock Average strengthened during the bidding by 80.84 points, or 0.43%, ending the session at 18.894.37. The S & P / ASX 200 in Australia fell by -20.67 points, or -0.36%, to the level of 5,678.75. The Shanghai Composite rose during trading by 4.24 points, or 0.14%, to the level of 3.113.01. The Hang Seng Index is growing at 266.48 points, or 1.17%.
USD / JPY: Today on FOREX, the USD / JPY currency pair quotes slightly strengthened after yesterday’s breakdown and consolidation below 114.14, after the elected US President Donald Trump expressed concern about the strengthening of the dollar. The MACD indicator is still falling, showing the growing potential of bears. Quotes remain between MA25 and MA100, making the signals from moving averages not clear. Indicator Stoch, went into the oversold zone. Despite the correction to the top, during today’s trading, there is no clear signal for a reversal, and in this situation, we can expect a continued decline in quotations, in the direction of 111.35 (38.2% Fib).
AUD / USD: As a result of yesterday’s growth, the quotes of the currency pair AUD / USD, were able to break through and gain a foothold above the level of 0.7541, to which they returned during today’s trading. The MACD indicator continues to grow, showing the continuing potential of the bulls. Moving averages continue to unfold, after quotes have risen above the MA100. The Stoch indicator is still in the overbought zone. The bearish divergence formed on the daily chart, between quotes and Stoch readings, has not yet been worked out. If the decline continues and the quotes return below the level of 0.7541 (61.8 Fib), the bears will be able to continue the correction down to the level of 0.7468 (50.0% Fib).
NZD / USD: Today, the quotes of the NZD / USD currency pair sank a little, after yesterday’s breakdown and consolidation above the level of 0.7173, after the elected US President Donald Trump expressed concern about the strengthening of the dollar. The MACD indicator continues to grow after crossing the zero line, showing the growing potential of bulls. Quotes rose above MA100, which indicates the probability of a trend change. On the daily chart a bearish divergence has formed, between the quotes, the MACD indicator and the Stoch indicator. In this situation, there is a rather high probability of a downward correction, so if the decline continues and the level of 0.7172 is broken (50.0% Fib), the bears will be able to continue the downward movement, at the level of 0.7098 (38.2% Fib) . Trading recommendations. In case of a breakdown level of 0.7172, sales can be considered, with short stops above the level.
XAUUSD: After working at 1,218.88, gold bounced back, showing a correction after seven days of growth caused by an increased demand for assets of asylum, amid a lingering concern about Donald Trump’s economic policies. The MACD indicator is above the zero line, showing the continuing potential of the bulls, while the Stoch indicator remains in the overbought zone. Gold quotes are between MA50 and MA100, which indicates a possible change in the direction of the trend. Overcoming divergences are not observed. In this situation, it is more likely that the downward correction will continue, in the direction of 1182.02 level (23.6% Fib). Bull signals will be valid only in case of breakdown and consolidation of quotes above the level of 1218.88 (38.2% Fib).
Review prepared by the analytical department https://www.fortfs.com/en/analytics/review
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