January 20, US stock indexes closed with an increase, after Donald Trump was sworn in as the 45th President of the United States. In his inaugural speech, the new president reaffirmed his protectionist position, but did not provide detailed information about exactly what actions he intends to take. “Every decision on trade, on taxes, on immigration, on international issues will be made in favor of American workers and American families,” Trump said in a speech. “We need to protect our borders from the destructive impact of other countries making our products, stealing our companies and destroying our labor market.” At the same time, many analysts say that investors have never seen so much fear from investors today. time. This is a very real fear of the unknown, investors simply do not know what changes to expect and in what direction the United States will move. Meanwhile, the season of reporting on the fourth quarter continues, most companies publish fairly optimistic reports, which has a positive effect on the market as a whole. So better than expectations reported General Electric Co., American Express Co., Procter & Gamble Co. and Skyworks Solutions Inc .. Worse than expected, reports were provided by Bristol-Myers Squibb Co .. Oil prices rose on Friday, after statements by OPEC and other manufacturers that they are successfully implementing plans to reduce production. At the same time, growth was limited by a surge in drilling and production in the United States.
The S & P 500 rose 7.62 points, or 0.34%, to close at 2.271.31. The Dow Jones Industrial Average added 94.85 points, or 0.48%, to close at 19.827.25. The Nasdaq Composite Index rose 15.25 points, or 0.28%, to close at 5,555.33. In Asia, on January 23, stock markets traded in different directions, influenced by the strengthening of regional currencies and the ambiguous assessment of investors, the influence of the Trump administration policy on Asian markets. Asian markets are looking forward to the growth of budget spending in the US, but fears of protectionist policies, the new administration. The Japanese stock market was lagging behind, after the yen plummeted, against the dollar, which had a negative effect on most exporters. Nikkei Stock Average fell by -246.88 points, or -1.29%, ending the session at 18.891.03. The S & P / ASX 200 index in Australia fell to -43.78 points during the session, or -0.77%, to close at 5,610.97. The Chinese market is trading, with an increase, after the central bank of China added temporary liquidity to the system, on the eve of the lunar New Year. The Shanghai Composite rose 13.64 points, or 0.44%, to 3,136.77. The Hang Seng Index is growing at 9.65 points, or 0.04%.
In Forex during today’s trading, the USD / JPY currency pair quotes declined again, breaking through and consolidating below 114.14, amid growing fears of the protectionist policy of the new US president. The MACD indicator is again falling, remaining below the zero line, showing the bears’ potential remaining. Quotes remain between MA25 and MA100, making the signals from moving averages not clear. Maturing divergences are not observed in any indicator. After the formation of two high reversal candlesticks on the daily chart, the quotes resumed their decline, after which we can expect the correction to continue downward towards the 111.35 level (38.2% Fib). Trading recommendations. In this situation, it is possible to consider medium-term sales, with short stops above the level of 114.14 and targets in the area of 111.35.
AUD / USD: During today’s trading, the quotes of the AUD / USD currency pair resumed their growth, ignoring the doji reversal candle formed on Friday on the daily chart. Traders began to sell the dollar, fearing the protectionist policies of the new US president, which could dramatically increase inflation. The MACD indicator continues to decline, approaching the zero line, indicating a return of bears, while the Stoch indicator is still in the overbought zone. Moving averages provide mixed signals. Friday’s reversal candle, the bearish divergence formed on the daily chart a few days ago, between the quotes and the Stoch readings, as well as indicators, indicate the superiority of the bearish moods on the pair. So, in the case of a resumption of the decline and breakdown of the level of 0.7541, the bears may begin a downward correction to test the level of 0.7468 (50.0% Fib).
NZD / USD: Today, the quotes of the NZD / USD currency pair resumed their growth, returning above the level of 0.7172, after the new US President Donald Trump continued the protectionist rhetoric after the inauguration. The MACD indicator began to decline, remaining above the zero line, indicating the return of bears, while the Stoch indicator is in the overbought zone. Quotes rose above MA100, which indicates the probability of a trend change. The bearish divergence formed between the quotes, the MACD indicator and the Stoch indicator, is still not worked out. In this situation, it is worth considering two scenarios. So in the case of continued growth and breakdown of the level of 0.7246 (61.8% Fib), the bulls can continue to ascend, to refine the level of 0.7350 (78.6% Fib). At the same time, in case of resumption of decline and return below the level of 0.7172 (50.0% Fib), bears can start a downward movement to practice the level of 0.7098 (38.2 Fib).
XAUUSD: Gold quotes resumed their growth, having completed the level of 1,218.88, as the increased expectations of Trump’s protectionist policies returned the demand for asylum assets. The MACD indicator is falling closer to the zero line, indicating the return of bears, while the Stoch indicator is 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, we can expect the continuation of the bullish dynamics, so in the case of continued growth, breakdown and consolidation of quotes above the level of 1218.88 (38.2% Fib), bulls can continue to ascend, to test the level of 1248.68 (50.0 % Fibo). Trading recommendations. In the event of a breakdown and consolidation, the quotations of gold are above the level of 1,218.88 (38.2% Fib), purchases can be considered, with short stops below the level.
Review prepared by the analytical department https://www.fortfs.com/en/analytics/review
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