Market Analysis December 23, 2020
Tags: Trading, Market Analysis Reports, Market Analysis, Stocks, Stock Market

- Asian securities are giving up profits after President Donald Trump said he asked Congress to amend the pandemic aid law passed earlier this week. Chinese stocks rose on Wednesday, fueled by gains in electric vehicle manufacturers and suppliers, as investors believe policymakers will avoid sudden policy tightening by 2021 to support the economy’s recovery from the slump caused by the pandemic.

- US stock futures fell in overnight trading on Tuesday after President Donald Trump expressed concern about a new Covid-19 aid package that could delay the spread of funds to struggling Americans. The Dow slipped 110 points. S&P 500 and Nasdaq down 0.5% and 0.4%, respectively

Europe became the first region in the world to pass 500,000 deaths from COVID-19 on Tuesday, according to a Reuters tally, as a new variant of the coronavirus found in Britain threatens the region’s precautionary measures to curb the pandemic

- Dollars rose in Tuesday’s trading session in a thin trading range, as concerns about the coronavirus variant raging through the UK, causing a ‘lockdown’, dampening market optimism about a US stimulus bill passed by congress overnight.

- Risk appetite took a hit, as US stocks fell except for the Nasdaq, and the U.S. Treasuries are stronger. Currencies linked to a higher risk appetite such as the Australian and New Zealand dollars were also lower against the greenback

- Oil fell in early trading on Wednesday after industry data showed US crude stockpiles rose last week, defying expectations for a fall, and US President Donald Trump rattled markets by threatening not to sign the long-awaited COVID-19 aid bill

- EIA’s crude oil inventory report will be released Wednesday

- US jobless claims, durable goods, personal income data comes Wednesday

- US bonds and stock trading and markets in other parts of the world will be closed on Thursday morning for the Christmas holiday. Most of the global markets are closed on Friday.

Dollar Maintain Strengthening Momentum?

The USD Index last Tuesday closed at 90,546 levels and in the early Asian trading session, this Monday opened at 90,525 levels. The euro fell to the 1.2151 area and closed around 1.2186. The pound fell to the 1.3302 area and closed at the 1.3399 area. Aussie fell to the 0.7515 area and closed in the 0.7551 area. Yen reached the 103.72 area and closed at the 103.50 area. The Swiss Franc reached the 0.8902 area and closed in the 0.8876 area, Tuesday, December 22, 2020. The currency market showed quite a narrow trade in the currency market last Tuesday, the number of equities that decreased because the holiday season had started and the ‘risk-on’ that was running was indeed less profitable. for risky currencies, and USD strengthens, if things like this continue until next week, the initial session of the year will be different, if the overbought area is maintained then a major correction can occur, but if until the end of this year session is closed with a wider trading range then correction for the USD will be seen.

Symbol

Technical Analysis

Trend

Buy Levels

Sell Levels

EURUSD

Steady weakness below 1.2202 could be the initial signal for further euro consolidation to test the support at 1.2162 1.2128 and 1.2035. A steady gain above the 1.2205 level could be the start of a strengthening euro rally to test 1.2260–1.2280 resistance.

DOWN

1.2120–1.2070

Cutloss : 1.2030

1.2190–1.2235

Cutloss : 1.2270

USDJPY

Consolidation will return to test the 103.49 level, rise above this level has the potential to weaken to the 103.95 and 104.30 levels. Steady gain below the 103.35 level will trigger a rally at the 103 and 102.55 levels

UP

103.35–102.95

Cutloss : 102.55

103.90–104.35

Cutloss : 104.65

GBPUSD

Steady weakness below the 1.3385 level can again push the pound to weaken to 1.3310, 1.3295 and 1.3186 levels. Steady gain above the 1.3430 level will be the initial signal for the pound’s strengthening rally at 1.3540–1.36 levels.

DOWN

1.3235–1.3180

Cutloss : 1.3150

1.3420–1.3470

Cutloss : 1.3505

AUDUSD

A steady weakening below the 0.7559 level could trigger a test of the support at 0.7495 and 0.7437–0.7414. Stable strengthening above the level of 0.76 will again support the bullish trend targeting a rally at the levels of 0.7650–0.7680.

DOWN

0.7490–0.7440

Cut loss: 0.7400

0.7560–0.7605

Cut loss: 0.7635

USDCHF

Consolidation can still continue for the swiss franc with a stable weakening target to 0.8910 and a resistance test of 0.8938 to 0.8980. Steady gain below the 0.8866 level could trigger a rally at the 0.8800 and 0.8760 levels.

UP

0.8866–0.8815

Cut loss : 0.8780

0.8938–0.8980

Cut loss 0.9015

GOLD

Steady weakness below 1871 and 1855 levels could push gold back down to 1805 levels. Steady gains above 1871 and 1881 levels could again support gold’s strengthening rally to test resistance levels 1898, 1912 and 1930

DOWN

1845–1825

1871–1885

SILVER

Steady weakness below 25.60 level will continue to test support 24.60 / 24.20. A steady decline below the 24.70 level will again be the initial signal for a bearish trend rally for silver. Strengthening above the 27.90 level will provide the signal for a further rally to the 32.60 level.

CONSOLIDATION

24.40–23.00

25.30–27.50

US OIL

A steady decline below the level of 46.40 could signal a bearish trend for oil and test support levels of 44.75 and 42.90. A steady gain above the 47.90 level will trigger a rally up to the 49–52 level.

CONSOLIDATION

44.40–42.90

46.70–47.50

SP500

SP500 will again test the strong support 3660 which can trigger consolidation at levels 3615 and 3555. Levels 3745–3795 are still the focus of SP500 resistance price

CONSOLIDATION

3610–3570

3700–3750

Dow Jones

The steady decline below the level to the level of 29945 will continue the consolidation of Dow Jones at the levels of 29580 and 29180. The strengthening of the Dow will still focus on the 30375, 30440 and 30560 levels.

CONSOLIDATION

29500–29200

29950–30130

Nasdaq

Stable weakness below 12670 and 12490 will trigger consolidation to target levels 12420, and 12280. A steady gain above the 12750 level will maintain the nasdaq’s bullish momentum for a test of resistance 12830 and 12936

CONSOLIDATION

12340–12160

12745–12810

Hangseng

Stable weakening below the 26150 level can again trigger a test of strong support at 25940 and 25550. A steady gain above the 26445 level will still maintain the bullish momentum Hangseng to re-test the resistance 26750

DOWN

25940–25550

26270–26380