HY Markets Research Team
HY Markets
FX - EURO
THE EURO closed higher due to short covering on Monday as it consolidated some of last week's decline. The midrange close sets the stage for a steady opening when Tuesday's night session begins trading. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible nearterm. Closes below the 20day moving average crossing are needed to confirm that a double top has been posted. If it renews the rally off November's low, monthly resistance crossing is the next upside target.
FX - YEN
THE YEN closed slightly higher on Monday. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bullish signalling that additional strength is possible. If it extends the rally off October's low, weekly resistance crossing is the next upside target. Closes below the 20day moving average crossing are needed to confirm that a shortterm high has been posted.
FX - SWISS FRANC
THE SWISS FRANC closed lower on Monday. The midrange close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible nearterm. If it extends last week's rally, the reaction high crossing is the next upside target. If it renews the decline off November's high, weekly support crossing is the next downside target.
FX - STERLING
STERLING closed higher on Monday as it extends this month's trading range. The midrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are turning neutral signalling that sideways trading is possible nearterm. If it extends the rally off November's low, monthly resistance crossing is the next upside target. Closes below last Tuesday's low would open the door for a test of the JulyNovember uptrend line crossing.
BULLION - GOLD
GOLD posted an inside day with a lower close on Monday. The midrange close sets the stage for a steady opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off August's high, weekly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a low has been posted.
BULLION - SILVER
SILVER closed higher on Monday. The highrange close set the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it renews the decline off October's high, June's low crossing is the next downside target. If it renews the rally off this month's low, the reaction high crossing is the next upside target.
INDICIES - US 30
US30 Index CFD closed higher on Monday as it extends this year's rally into uncharted territory. The midrange close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible nearterm. If the Dow extends this year's rally into uncharted territory, upside targets will be hard to project. Closes below the 10day moving average crossing would confirm that a shortterm top has been posted.
INDICIES - US 100
US 100 Index CFD gapped up and closed higher on Monday posting a new contract high for the year. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible nearterm. If it extends this year's rally, monthly resistance crossing is the next upside target. Closes below last Wednesday's low crossing would confirm that a shortterm top has been posted.
INDICIES - US 500
US 500 Index CFD closed higher on Monday and posted a new contract high as it extended this year's rally. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible nearterm. If it extends this year's rally into uncharted territory, upside targets will be hard to project. Closes below last Monday's low crossing are needed to confirm that a shortterm top has been posted.
ENERGY
US OIL closed lower due to profit taking on Monday as it consolidates some of the rally off November's low. The lowrange close sets the stage for a steady to lower opening when Tuesday's night session begins. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off November's low, the 62% retracement level of the AugustNovember decline crossing is the next upside target. Closes below the 20day moving average crossing are needed to confirm that a shortterm top has been posted.
NATURAL GAS closed higher on Monday. The lowrange close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible nearterm. If it extends the aforementioned rally, the reaction high crossing is the next upside target. Closes below the 10day moving average crossing would confirm that a shortterm top has been posted.
COMMODITIES - US COFFEE
US Coffee CFD closed higher on Monday as it extends the rally off November's low. The midrange close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends this month's rally, the reaction high crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.
The information set forth herein was obtained from sources which we believe to be reliable, but its accuracy cannot be guaranteed. It is not intended to be an offer, or the solicitation of any offer, to buy or sell the products or instruments referred herein. Any person placing reliance on this commentary to undertake trading does so entirely at their own risk.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.