ATFX Market Update - 2019.12.26

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ATFX Market Outlook, 2019 Dec 26

Personal opinions today:

Markets in Europe and parts of Asia will be closed today after the Christmas holiday.

This afternoon, Japan released orders for new housing starts and construction for November. Meanwhile, Bank of Japan, governor of the addressed a meeting of advisers to Japan's economic and trade council. In the evening, U.S. jobless claims will be released and market expectations were lower than the previous week. But volatility is expected to be muted because of the regional European closure.

[Important financial data and events] note: * is important

13:00 Japan new housing starts and construction **
21:30 U.S. initial and continuing jobless claims ***

EURUSD
1.1095/1.1105 resistance
1.1075/1.1065 support
U.S. durable goods orders fell more than expected in November, while the dollar fell and the euro pared losses. But ECB monetary policy and regional economic data kept the euro's gains in check. Technically, the euro is still on a downward trend and the fundamentals remain bearish. With European markets closed for the Christmas holiday and overall trading less, the euro is likely to trade in a narrow range.

Pound to dollar
1.3000/1.3010 resistance
1.2935/1.2925 support
The UK economy is showing weakness and slowing. The governor of the Bank of England said the outlook is uncertain and monetary policy remains loose, which is bearish for the pound. At present, the fundamentals and technical side of the bearish for pound. Technically, focus on the 1.3000 important resistance. But European markets were closed for the Christmas holiday and overall trading was light. The dollar could benefit if U.S. jobless claims and continuing claims are released, the pound has a chance to test support.

Australian dollar to dollar
0.6930/0.6940 resistance
0.6900/0.6890 support
U.S. durable goods fell more than expected in November and were bearish for the U.S. dollar, while the Australian dollar rose, having hit 0.6930 resistance. However, the Australian dollar traded in a tight range against the U.S. dollar as overall trading was light due to the Christmas holiday. Currently, it focuses on 0.6930 resistance to 0.6900 support. The Australian dollar has a chance to test support against the U.S. dollar, which could benefit from a U.S. jobless claims report.

Dollar to yen
109.70/109.80 resistance
109.45/109.35 support
The Japanese yen is likely to trade in a tight range as the overall market is thin over the Christmas holiday. With today's us data forecast, the bullish dollar/yen is expected to break through 109.60 resistance, upper test upper-level resistance.

USDCAD
1.3165/1.3175 resistance
1.3130/1.3120 support
With markets closed early ahead of the Christmas holiday, overall trading was light, with the USDCAD clawing back at 1.3165 resistance. Today, the market focus on U.S. employment and renewals and oil market performance. The U.S. dollar is expected to trade in a tight range against the Canadian dollar as European markets are closed.

US crude oil futures
61.85/62.15 resistance
60.65/60.25 support
The market watched U.S. API crude inventories change tomorrow morning, keeping crude prices up. Technically watch U.S. crude futures seems to test 61.85 or 62.15 resistance.

Gold
1501/1503 resistance
1490/1488 support
Dow futures fell as orders for U.S. Durable goods fell over expected in November. Gold rose as a safe-haven asset, pushing the price of gold closer to $1,500. With European markets closed and overall trading less, gold is likely to trade in a tight range. If gold keeps below $1,503 resistance, it could test $1,488. If U.S. jobless claims beat market expectations, expect to see another support at $1,483.

U.S. Dow Jones industrial average futures US30
28600/28685 resistance
28470/28375 support
The market news said the United States and China will sign a trade deal next month, the investment climate is good. Technically, Dow futures look for resistance on 28600 or 28685. After the Christmas holiday, in response to the US consumer market, pay attention to the stock index adjustment. If the consumer market consumption over last year, Dow futures are expected to rise, potentially breaking through the recommended resistance.

BTCUSD:
7550 / 7775 resistance
6955 / 6800support
The federal reserve announced the suspension of interest rate cuts, bearish for Bitcoin price. Now, the Brexit leads the market risk on, also concern the Dow future fall, bullish cryptocurrency, and the bitcoin price could rebound. Technically, the trends seem downward.

Enjoy trading! The content is for reference only. Please do ensure that you understand the risk.

Registered Australian Accountant/ Certified Professional Manager / Certified Financial Advisor Experienced Investor / Media Market Commentator Martin Lam has Over 17 years’ experience in global investment market. Familiar with the worldwide stock indices, precious metals such Gold and Silver, Crude oil and Forex. He operated Martin Currency Trading Company and had partnership with a number of well-known international financial corporations and institutions. Before he join ATFX, he was TeleTrade Greater China development and Sales Director. Mr. Lam attends Hong Kong Now TV and China CCTV finance channel once a week. He also had regularly invited by different media, such as DBC Digital Financial Channel, Hong Kong Economic Times, The Standard, Ming Pao to share his experience to trade in Forex, Precious metals, Crude oil and worldwide stock indices.

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