January 4, US stock indexes closed with growth, after the publication of the minutes of the December meeting of the heads of the US Federal Reserve and data on the growth of automotive sales. The central bank’s policy committee unanimously raised interest rates last month by a quarter per cent, thereby confirming its intention to move to faster rates of rate increases in 2017. Punctures are considered by the markets as the first reaction of Fed officials to Trump’s victory on November 8. It is worth noting that the Fed can choose an even more aggressive way of raising rates if inflationary pressure increases. After the publication of the minutes, the shares began to grow, returning to the highs of the session, but investors did not wait for new highs. These monthly car sales from General Motors Co. and Ford Motor Co. turned out to be better than expected, adding about 10% in December, which provided additional support to stock markets and especially the S & P 500 index. General Motors shares closed up 5.5%, while Ford Motor Company added 4.6%. The S & P 500 closed up 12.92 points, or 0.57%, at 2,270.75. The Dow Jones Industrial Average rose 60.40 points, or 0.30%, to close at 19.942.16. The Nasdaq Composite Index closed with an increase of 47.92 points, or 0.88%, at the level of 5.477.00. Earlier today, most Asian stock markets are trading in positive territory, amid rising oil prices and positive statistics from China. At the same time, the Japanese stock market reacted with a fall, to the strengthening of the national currency. The dollar was weaker against the yen during Asian trading, falling after the publication of the minutes of the December meeting of the US Federal Reserve. Caixin’s business services index (PMI), published in China today, was 53.4 in December, up from 53.3, and up from 53.1 in November. The Nikkei Stock Average lost -73.47 points, or -0.37%, during the trading session, ending the session at 19.520.69. S & P / ASX 200 in Australia rose by 16.94 points, or 0.30%, to close at 5,753.35. The Shanghai Composite Index rose during trading on 6.62 points, or 0.21%, to close at 3.165.41. The Hang Seng index in Hong Kong is growing at 324.79 points, or 1.47%.
On FOREX, the USD / JPY currency pair quotes continued to decline during today’s trading, testing the key support level of 116.01, in case of a breakthrough, the bears had a good opportunity to continue the downward movement in the direction of the key support level of 114.70. On the D1 chart, the MACD indicator continues to decline, indicating the bears are returning to the market, and moving averages, on the contrary, show a persisting bullish trend.
On the H4 chart, the MACD indicator crossed the zero level and continues to decline, giving a bearish signal, while moving averages show a bullish trend strength.
Trading recommendations: After a confirmed breakdown of the key support level of 116.01, you can consider entering the market for sale, with short stops above the level. In case of resumption of growth and the return of USD / JPY quotes above the key support level of 116.01, as well as the breakdown of the intermediate level of 116.65, you can consider a buy entry with short stops below the level.
Today, the quotes of the currency pair AUD / USD, continued the upward movement, while having fulfilled the key resistance level of 0.7305. The MACD indicator continues to grow, indicating a return to the bull market. In case of a breakdown of the key resistance level of 0.7305, the bulls can continue the upward movement, in the direction of the key resistance level of 0.7505. Alternative option. Moving averages indicate a bear trend persist. In case of resumption of decline and rebound of quotations of the AUD / USD currency pair, from the level of 0.7305, the bears will be able to resume the downward movement in the direction of the key support level of 0.7144.
Today, quotes of the currency pair NZD / USD continued the upward movement, returning to the boundaries of the downward channel. The MACD indicator is growing, indicating a return of bulls to the market. In this situation, the bulls can continue to move up to the testing of the key resistance level of 0.7053. Alternative option. In the case of a resumption of the decline and breakdown of the opening level of today’s daily candle, the bears can resume the downward movement, to work out the key support level of 0.6880.
During today’s trading, the gold quotes continued to move north, in the direction of the key resistance level of 1206.08. The MACD indicator continues to grow, pointing to the rising potential of bulls. In this situation, the bulls can continue to move north to test the key resistance level of 1206.80. Alternative option. Moving averages, show the persistence of a bearish trend. In case of resumption of decline in gold quotes and breakdown of the level of yesterday’s daily candle, the bears will be able to continue moving south to test the key support level of 1142.34.
Overview prepared by Fort Financial Services Research.