January 5, US stock indices closed in different directions, amid mixed data from the labor market, negative forecasts for the retail sector and business growth in the non-manufacturing and services sectors. The labor market remains the focus of investors’ attention; yesterday’s weak data on new jobs in the private sector from ADP raised concern, even though the lower-than-expected number of initial claims for unemployment benefits. The retail sector, attracted attention after Macy’s late Wednesday evening, announced plans to close 68 stores and lay off 10,000 employees in 2017. Shares of Macy’s fell by -14%. Despite the fact that investors retain confidence in the ability of the new president, Donald Trump, to accelerate economic growth, pursuing a policy of reducing corporate taxes and deregulation, there are fears that markets are overheated. The Dow Jones Industrial Average fell by -42.87 points, or -0.21%, to close at 19.899.29. The S & P 500 fell -1.75 points, or -0.08%, ending the session at 2,269.00. The Nasdaq Composite Index closed with an increase of 10.93 points, or 0.20%, at the level of 5,487.94. Previously, most Asian stock markets traded down, amid a strengthening of the national currencies against the US dollar, which is reflected in the region’s export potential. Oil prices also did not add optimism, trading below the highs of last year, even though Saudi Arabia cut production to satisfy the OPEC agreement to reduce production volumes. The Nikkei Stock Average lost -66.36 points, or -0.34% during the trading, ending the session at 19,454.33. S & P / ASX 200 in Australia rose by 2.23 points, or 0.04%, to close at 5,755.58. The Shanghai Composite Index fell to -11.09 points, or -0.35%, to close at 3,154.32. The Hang Seng index in Hong Kong is growing at 31.44 points, or 0.16%.

USD / JPY: Today, the USD / JPY currency pair quotes show a correction to the top, after yesterday’s fall, as a result of which they broke through and consolidated below the level of 116.01. On the D1 chart, the MACD indicator continues to decline, showing the increasing potential of bears. At the same time, moving averages, on the other hand, show a bullish trend.

On the H4 chart, at the bottom of the wave, a reversal candle was formed, an inverted hammer and a bullish absorption pattern, indicating the likelihood of a correction to the top. The MACD indicator continues to decline after yesterday’s zero crossing, giving a bearish signal, while moving averages show a bullish trend strength.

This situation may have several scenarios. In the case of continued growth of the breakdown and consolidation of quotations above the level of 116.01, the bulls can resume an upward movement in the direction of the key resistance level of 121.68. At the same time, in the case of a rebound from the key resistance level and a breakout of the Low level of yesterday’s daily candle, the bears will have a good opportunity to continue the correction to the south, in the direction of the key support level of 111.87.

AUD / USD: Today, the quotes of the AUD / USD currency pair resumed their decline, after yesterday’s jump to the top, as a result of which they broke through and consolidated above the level of 0.7305. In chart D, the MACD indicator continues to grow, indicating a return to the bull market. Moving averages, show a continuation of the bearish trend.

On the H4 graph, at the top of the wave, a reversal candle hangs, which is a bearish signal. The MACD indicator began to decline, indicating the return of bears, while moving averages are still on the side of bears.

This situation may have several scenarios. In the case of continued downward correction and the breakdown of the key support level of 0.7305, the bears will be able to continue the downward movement, to test the key support level of 0.7174. At the same time, in the case of a resumption of growth in quotations and a breakdown of the High level of yesterday’s daily candle, we can expect a resumption of growth, to test the key resistance level of 0.7505.

NZD / USD: Today, the quotes of the NZD / USD currency pair sank a little, showing a correction, after two days of steady growth. On chart D, the MACD indicator continues to grow, indicating the growing potential of bulls. At the same time, the MA50 crossed the MA200, from top to bottom, which indicates the end of the bullish trend.

On the H4 chart, at the top of the wave, a reversal candle doji formed, which is a bearish signal. The MACD indicator continues to grow, showing the potential of bulls, moving averages, still on the bear side.

This situation may have several scenarios. In case of continuation of the correction to the south and breakdown of the Low level of yesterday’s daily candle, we can expect the continuation of the correction, for the testing of the key support level of 0.6880. At the same time, in case of resumption of growth of quotations of the pair NZD / USD and the breakdown of the key resistance level of 0.7053, the bulls can continue the upward movement in the direction of the key resistance level of 0.7296.

XAUUSD: Today, gold quotes slipped a bit, showing a correction, after three days of growth. On chart D, the MACD indicator continues to grow, approaching the zero line, showing the increasing potential of bulls. Moving averages show a persisting bearish trend.

On the H4 chart, the MACD indicator has begun to decline, indicating the return of bears. MA50 crossed MA100, from bottom to top, indicating the end of a bearish trend, while a bullish trend has not yet formed.

This situation may have several scenarios. If gold quotes will be able to continue lowering the level of yesterday’s daily candle, the bears will be able to continue the correction to the south, to test the key support level of 1,142.34. At the same time, in case of resumption of growth and breakdown of the High level of yesterday’s daily candle, the bulls can resume the upward movement, to test the key resistance level of 1206.80.

Overview prepared by Fort Financial Services Analytics

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