News & Analysis

U.S and European markets higher; Oil glides close to 3-week highs; EURUSD and EURJPY stall; USDCAD tumbles after CAD data

Dec 22, 2017 | Daily Market Outlook

Today’s high impact news:

▸ 20:30 GBP Current Account
▸ 00:30 CAD GDP m/m – USD Core Durable Goods Orders m/m

U.S markets returned to the black on Thursday, Dow Jones closed 55.64 points higher, The S&P500 closed 5.32 points higher and the NASDAQ closed 4.40 points higher. Buyer conference was driven by news some companies said they would spend the savings stemming from lower corporate taxes on higher wages and new construction. NBCUniversal and CNBC parent Comcast, as well as Boeing, AT&T and Wells Fargo, announced higher pay and bonuses for workers. The US30 CFD found support pre-NY session last night, we will still see it range bound with minor resistance at 24870. European markets started the session weaker but recovered to close higher. The DAX closed 40.47 points higher snapping a 3-day losing streak. The FTSE had a very strong session closing 78.76 points higher at a new record high. The UK100 CFD daily chart show’s price sitting at resistance on the daily chart. Catalonia went to the polls Thursday for a regional election following several months of political turbulence and uncertainty. Nokia rises on Huawei deal, finishing the session close to 4 percent higher.

Forex had a busy night with stalls, breakouts and falls. The EUR spent the day higher to the USD and JPY but stalled at highs into the New York session. The EURUSD looked primed to test 1.1900 before sellers set in. Price closed just below 1.1879 resistance. Sellers are active this morning, price trading 24 pips lower. The EURJPY made new 2017 highs in yesterday’s session. Buyers failed to hold momentum and price closed flat. Sellers are in control this morning taking price 30 pips lower. The AUDUSD broke out of its daily pendant pattern hitting November levels increasing by 34 pips. Buyers are in control this morning taking the price back above .7700. The USD fell to the JPY and CAD overnight. The USDJPY tested 113.60 high and quickly retreated closing 6.3 pips lower. This morning trade is flat, traders should keep an eye on 113.25 level on the daily, as it may come in as support. The USDCAD was dumped due to better than expected Canadian CPI and Retail Sales data. Sellers took price close to 100 pips lower. Buyers returned once 1.2710 to the downside was reached. We’ve seen a small rally this morning. Gold closed $1 higher in a choppy session, buyers tested 1268.90 but failed to hold highs. Price is trading higher this morning but continues to struggle at 1267.90 previous low set in November. Oil has been a quiet achiever, slowly grinding higher for the last 6 sessions. Buyers tested $58.30 overnight closing at $58.19 with a gain of 19 cents. Traders should keep an eye on this current area as it could redevelop into resistance.

AUDUSD – the continuation pendant pattern looks like coming good as buyers broke out last night. Two levels of resistance are presenting. Will the Aussie hold this higher move?  

Good trading from Eightcap.

Sources; CNBC.  All times are AEDST


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