November 21, US stock indexes closed positively on the background of jumped oil prices and the rollback of the US dollar index from local highs. Due to the lack of economic statistics, high oil prices and a slowdown in the strengthening of the dollar have a rather strong influence on investor sentiment.
On Monday, the dollar fell slightly, so the ICE Dollar Index, which measures currencies against a basket of six currencies, fell 0.3% to 100.90. At the same time, the yield on 10-year Treasury bonds fell by 3.4 basis points to 2.322%, returning investors to stocks.
Investors also positively perceived the comments, from Federal Reserve Chairman Stanley Fischer, who said that fiscal policy can do more to help the economy and even raise interest rates. Probably referring to Trump’s plans to mitigate the tax burden.
Most of the economic indicators this week are expected on Wednesday, including updated information on orders for durable goods and the minutes of the last meeting of the Open Market Committee.
The S & P 500 index rose 16.28 points, or 0.75%, to close at 2,198.18.
The Dow Jones Industrial Average added 88.76 points, or 0.47%, to close at 18.956.69.
The Nasdaq Composite Index moved north by 47.35 points, or 0.89%, to end at 5,368.86.
November 22, Asian stock indexes rose on Tuesday morning, as oil prices continued to strengthen, amid expectations that key oil-producing countries would agree to a deal to reduce production. In addition, continued growth in the US market adds optimism to Asian markets.
Oil prices rose to a three-week high, as investors had hope that the Organization of Petroleum Exporting Countries would reach an agreement to reduce production at its meeting on November 30.
The Japanese market initially declined after a 6.9-point earthquake that occurred off the east coast of Japan on Tuesday morning, although the impact was limited, and the Nikkei Stock Average closed with growth.
The Nikkei Stock Average index strengthened during the bidding, by 56.92 points, or 0.31%, to the level of 18,162.94.
S P ASX 200 grew by 62.00 points, or 1.16%, to the level of 5.413.33.
The Shanghai Composite Index strengthened by 30.22 points, or 0.94%, closing at 3,248.35.
The Hang Seng Index shows growth, adding 348.76 points, or 1.56%.
Yesterday, the USD / JPY currency pair quotes resumed their decline, and a reversal candle was formed on the daily chart, a high wave. At the same time, today the pair USD / JPY is growing again. The MACD indicator continues to rise higher, indicating the bulls’ potential remains. In the case of continued growth and breakdown of the High level, yesterday’s daily candle, the bulls can continue to move north, in the direction of the key resistance level of 111.87.
Alternative. The RSI indicator is in the overbought zone, indicating the possibility of a downward correction. In the event of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, the bears may continue the correction down towards the key support level of 107.46.
Today, the AUD / USD quotes continued moving north. At the same time, the RSI indicator went out of the oversold zone, indicating the likelihood of continued correction to the top. Today, we can expect continued growth, currency quotes of the pair AUD / USD, in the direction of the key resistance level of 0.7490.
Alternative. The MACD indicator continues to decline, indicating the continuing potential of bears. So, in the case of a resumption of the decline and the breakdown of the opening level of today’s daily candle, we can expect the resumption of the downward movement of the AUD / USD currency pair quotes towards the key support level of 0.7305.
Yesterday, the quotes of the NZD / USD currency pair resumed their growth, while breaking through and consolidating, above the level of 0.7053. As a result of growth, on the daily chart, a candle pattern was formed, bullish absorption. In this situation, we can expect the continuation of the bullish dynamics, in the direction of the key resistance level of 0.7296.
Alternative. In the case of a resumption of the decline, the quotes of the NZD / USD currency pair and the breakdown of the key support level of 0.7053, the bears may resume the decline towards the key support level of 0.6880.
Today, gold quotes continued to move north. At the same time, the RSI indicator went out of the oversold zone, indicating the probability of the continuation of the correction, to the north. In this situation, the bulls can continue the correction to the top, in the direction of the key resistance level of 1240.62.
Alternative. The MACD indicator continues to decline, showing the continuing potential of bears. So, in the event of a resumption of the decline and breakdown of the opening level of today’s daily candle, the bears can continue the downward movement, to work out a key support level of 1206.80.
Overview prepared by Fort Financial Services Analytics