News & Analysis

Stocks trade mixed – Dow sets new record; USD continues south – USDCAD trading back at OCT levels; Gold continues run closes in on 1295; EURUSD touches 1.1960

Dec 29, 2017 | Daily Market Outlook

Today’s high impact news:


U.S markets – keep on giving during this holiday period. The Dow Jones added 63.21 points hitting new 2017 records. The S&P500 added 4.92 and the NASDAQ closed 10.82 pts higher. Dow sets record close, tracking to end the year with six full weeks of gains for the first time since 1954. The S&P500 on track to do something it’s never done before, notching gains in every month of the calendar year for the first time in history, according to Ryan Detrick, the senior market strategist at LPL Financial. “That’s never happened in the history of the S&P for a calendar year,” Detrick told CNBC. “The S&P is up 20 percent, and we’ve seen that in the past, [but] what makes this year exceptional is just the total lack of volatility.” “The one stat that gets us is that the largest pullback, in 2017 was 2.8 percent, that’s the smallest since 1995.” European markets – failed to follow the US lead as the FTSE just edged higher gaining 2.20 points, the DAX fell by 90.08 points and the CAC closed 29.42 points lower.

Forex – the main story continues to be the sinking USD as it hit 4-weeks lows. Commodities continued to rally. Copper briefly rose more than 1 percent to its highest in nearly four years. Oil held just below the psychologically key $60 level, a 2.5-year high which it touched earlier this week. The USDCAD sunk last night, losing 90 pips. Since the 20th we’ve seen a 308 pip decline. The AUDUSD train slowed last night as buyers stalled on their break of .7800. Buyers took price up to .7809, sellers emerged trimming gains back under, we’ve seen one test that failed. .7800 is becoming short-term resistance. The GBPUSD added 37 pips, buyers lost interest around 1.3455, price is positive this morning. The EURUSD had a strong session moving back above 1.1950, making a two week high. Traders should keep an eye on 1.1961 this level is the current resistance level. It reconfirmed overnight. The JPY bounced back yesterday, the USDJPY lost 50 pips. The AUD and GBP settled lower but the EUR fought back to close higher. We see 134.40 as support on the EURJPY daily chart at the moment. Gold continues to drive off a weaker USD, buyers added $6.80 overnight as price finished just below 1295. Gold has returned to a previous high. We see a potential supply zone from 1293.50 to 1299.20.

We wish all of our clients and readers a very Happy New Year and prosperous 2018.

Gold  – buyers should be looking at the current area with interest as it could develop into a supply zone and offer resistance to buyers. Confirmation is still required.

Good trading from Eightcap.

Sources; CNBC.  All times are AEDST


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