Daily Forecast - 06 January 2016
S&P March contract
Emini S&P as yet unable to beat strong resistance at 2016/17. This is the main challenge for bulls today of course but shorts need stops above 2020. A break higher targets 2027/28 but if we continue higher look for a selling opportunity at 2038/39. Shorts need stops above 2043. Just be aware that an unexpected break higher could target strong resistance at 2055/56.
First support at 2004/03 could hold the downside but below here meets minor support at 1995. Further losses could test important 50% Fibonacci & 7 week trend line support at 1986/85. As we know this is the last line of defense for bulls but longs need stops below 1980. A break lower is a sell signal & targets 1972/71 then 1964/63. If we continue lower look for strong support at 1958/56.
E Mini Nasdaq March contract
Emini Nasdaq holding below 4460 risks a retest of this week's low at 4430. Watch for the most important support of the day at 4423/20. If this fails the last line of defense for bulls is trend line support at 4405/00. A break below 4390 therefore is a sell signal to target 4370/65 then 4360. If we continue lower look for 4349/45.
First resistance at 4470/73 but above here could target stronger resistance at 4495/4500. Shorts need stops above 4510 with a break higher to target minor resistance at 4518/20 then strong resistance at 4532/37. Shorts here need stops above 4544.
Emini Dow Jones March contract
Emini Dow Jones minor resistance at 17050/060 but stronger resistance at 17100/105 is likely to be the main challenge for bulls today. A break above however could then target trend line resistance at 17195/17205 where we watch for a high for the day. Shorts need stops above 17260. We then meet minor resistance at 17285/295 but if we continue higher look for a selling opportunity at 17380/390, with stops above 17430.
First support at 16990/980 is only minor but 16910/900 remains quite good support. Longs need stops below 16860. A break lower then targets 16795/790 & perhaps as far as 17760. If we continue lower look for 16680.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.