December 16, US stock indexes closed lower Friday, after reports that a Chinese warship captured an underwater UAV drone in international waters off the coast of the Philippines. Political relations between the United States and China can have a significant impact on trade relations between countries. Against this background, any deterioration in relations begins to unnerve investors. The sharp strengthening of the dollar, after the publication of the Fed to raise interest rates on Wednesday, also continues to put pressure on stock markets. Investors fear that a rising dollar could trigger a drop in profits of large multinational companies. Economic data, published on Friday, showed a fall in housing construction by 18.7% in November, which also did not add optimism to investors. The Dow Jones Industrial Average closed down -8.83 points, or -0.04%, at 19.843.41. The S & P 500 dropped to -3.96 points, or -0.18%, to close at 2.258.07. The Nasdaq Composite fell by -19.69 points, or -0.36%, ending the week at 5.437.16.

December 19, most Asian stock indices fell slightly, amid tensions between the US and China, despite the agreement of China, to return the captured underwater drone of the US Navy. The Japanese market, which was actively growing last week, winning from the fall of the yen, sank a little, losing from the strengthening of the yen. Japanese exports fell by -0.4% in November from a year earlier, while imports fell by -8.8% in November from a year earlier, according to data released on Monday by the Ministry of Finance of Japan. The Nikkei Stock Average dipped slightly, dropping by -9.55 points during the trading session, or -0.05%, ending trades at 19.391.60. The Australian market has been trading higher, as the high price of oil has stimulated demand for shares of energy companies. Oil Search rose 0.6% and Woodside Petroleum jumped 0.7%. The S P ASX 200 index rose 29.15 points, or 0.53%, ending trading at 5.562.08. The Shanghai Composite Index fell by -4.90 points, or -0.16%, to close at 3.118.08. The Hang Seng Index falls by -168.67 points, or -0.77%.

On Friday, on the daily chart of the USD / JPY currency pair, a hanged candle reversal was formed, after which the bears resumed, moving south. The RSI indicator is in the overbought zone, which indicates a possible downward correction. In this situation, we can expect a continuation of the decline, of the USD / JPY currency pair quotes, for testing the key support level of 116.01. Alternative option. In case of resumption of growth and breakdown of the High level, the daily candle of Friday, the bulls can continue the upward movement, in the direction of the key resistance level of 121.68.

On Friday, the quotes of the currency pair AUD / USD, broke through and consolidated below the level of 0.7305. The MACD indicator continues to decline, indicating the bears’ potential remains. Despite a slight correction to the top, during today’s trading, bears have a good opportunity to continue to decline, in the direction of a key support level of 0.7144. Alternative option. In case of resumption of growth, the quotations of the AUD / USD currency pair and the breakdown of the key resistance level of 0.7305, the bulls may begin a correction to the north, to the key resistance level of 0.7505.

Today, the quotes of the NZD / USD currency pair have slightly increased, while on the H4 chart, a bullish takeover pattern has formed. After that, the bulls can continue the correction to the north, in the direction of the key resistance level of 0.7053. Alternative option. The MACD indicator continues to decline after crossing the zero level, indicating the strength of the bears. In the case of a resumption of decline, quotes of the NZD / USD currency pair and breakdown of the Low level, Friday’s daily candle, we can expect the downward movement to continue, to test the key support level of 0.6880.

XAUUSD: During today’s trading, gold prices continued to rise, approaching the key resistance level of 1142.34. The RSI indicator is in the oversold zone, indicating the probability of a bullish correction. In the case of continued growth of quotations of gold and breakdown, the key resistance level of 1143.43, the bulls will be able to continue the correction upwards, in the direction of the key resistance level of 1206.80. Alternative option. At the same time, moving averages, on the chart, show a continuing bearish trend. In case of a rebound of gold quotes from the key resistance level of 1142.34 and the resumption of decline, the bears can continue the downward movement, in the direction of the key support level of 1081.15.

Overview prepared by Fort Financial Services Analytics

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