November 3, US stocks closed lower, amid mixed economic data and growing pre-election uncertainty. A number of economic reports, including unemployment benefits, productivity data, production orders and the non-manufacturing ISM index, are now viewed by markets as strong enough to justify an interest rate increase from the Fed at a meeting in December. The central bank kept interest rates unchanged on Wednesday, but made it clear that it is closer to the decision on the rate increase at a meeting in December. Election of the President of the United States, is still a key factor affecting investor sentiment. According to the latest polls, Donald Trump and Hillary Clinton, has about the same chance of winning. The fall in Facebook shares, have become the main factor, yesterday’s significant drop in the Nasdaq index. Thus, Facebook shares closed at -5.7%, after the company said that the growth rate of advertising revenue will fall. The S & P 500 ended the day with a decline of -9.28 points, or -0.44%, at 2.088.66. The Dow Jones Industrial Average fell -28.97 points, or -0.16%, to close at 17,930.67. The Nasdaq Composite fell by -47.16 points, or -0.92%, to 5,058.41. On November 4, Asian stock indices were trading lower, amid low oil prices and the willingness of investors to avoid risky assets on fairly volatile days. Investor caution is associated with uncertainty, pending the results of the presidential election in the United States, next week. The Nikkei Stock Average lost during the trades -229.32 points, or -1.34%, to close at 16.905.36. S & P / ASX 200 in Australia fell by -44.73 points, or -0.86%, to the level of 5,180.82. The Shanghai Composite Index lost -3.62 points, or -0.12%, closing at 3.125.32. The Hang Seng is down by -8.89 points, or -0.04%.
Today, the USD / JPY currency pair quotes strengthened slightly, heading towards a key resistance level of 103.53. The MACD indicator continues to decline, approaching the zero line, the intersection of which will show the potential of bears. In this situation, we can expect a continuation, a correction to the top, to the testing of the key resistance level 103.53, the breakdown of which will allow the bulls to continue the correction in the direction of the key resistance level 106.75. While in the case of a rebound from the key resistance level of 103.53 and a breakdown of the low level of yesterday’s candlestick, we can expect the resumption of the bearish dynamics, towards the key support level of 101.01.
Quotations of the AUD / USD currency pair, resumed their decline, during today’s trading. At the same time, on the H4 chart, a reversal candle was formed, a high wave. In this connection, we can expect the continuation of the bearish correction, towards the key support level of 0.7490. Alternative option. At the same time, the MACD indicator, on the daily chart, continues to grow, after a rebound from the zero line, indicating the potential of the bulls. So, in the case of the resumption of growth and the breakdown of the High level of yesterday’s daily candle, the bulls can continue to move north to test the key resistance level of 0.7719.
Quotes of the NZD / USD currency pair resumed their decline, returning to the key support level of 0.7296. In case of continued decline and breakdown of the level of 0.7296, the bears can continue to move south, in the direction of the key support level of 0.7053. Alternative option. The MACD indicator crossed the zero line and continues to grow, demonstrating the potential of bulls. So, in the event of a rebound, the quotes of the NZD / USD currency pair, from the key support level of 0.7296, we can expect the resumption of the bullish movement, in the direction of the key resistance level of 0.7416.
Today, gold quotes have dropped slightly. The MACD indicator is growing after a zero line, the intersection of which will demonstrate the potential of the bulls. In this situation, there is a possibility of a bearish correction continuing, in the direction of the key support level of 1277.12. At the same time, in case of resumption of growth of quotations of gold and the breakdown of the High level of yesterday’s daily candle, the bulls can resume an upward movement in the direction of the key resistance level of 1315.41.
Overview prepared by Fort Financial Services Research.