Daily Market Review & Financial Analysis

Fed Leaves Interest Rate Unchanged

December 12, 2019

U.S. Stock Market

Pivot : 8,352 Last : 8,398

Review:

U.S. indices finished in the green with Technology stocks the stars of the day after the Fed left the benchmark interest rate unchanged. The Dow Jones rose by 0.11%, the S&P 500 was up 0.29% and the NASDAQ added 0.44% to its value.

Technical comment:

The NASDAQ 100 RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 8,352 with targets at 8,445 and 8,490 in extension.

Alternative scenario:

Below 8,352, look for further downside with 8,310 and 8,272 as targets.

Resistance 8,445 8,490 8,510
Support 8,352 8,310 8,272

Japanese Yen (JPY)

Pivot : 108.60 Last : 108.49

Review:

The yen rose against the dollar after the Japanese PPI came in at 0.1% vs 0.0% forecast.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

Short positions below 108.60 with targets at 108.40 and 108.30 in extension.

Alternative scenario:

Above 108.60, look for further upside with 108.70 and 108.80 as targets.

Resistance 108.60 108.70 108.80
Support 108.40 108.30 108.20

Gold

Pivot : 1,470.0 Last : 1,474.7

Review:

Gold rose thanks to the U.S. interest rate remaining unchanged.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

Long positions above 1,470 with targets at 1,478.50 and 1,481.50 in extension.

Alternative scenario:

Below 1,470, look for further downside with 1,467.25 and 1,464.75 as targets.

Resistance 1,478.0 1,481.5 1,484.0
Support 1,470.0 1,467.3 1,464.8

Crude Oil

Pivot : 55.30 Last : 58.94

Review:

Oil prices fell by 0.56% after U.S. Crude Oil Inventories came in at 0.8M.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 55.30 with targets at 63.00 and 64.75 in extension.

Alternative scenario:

Below 55.30, look for further downside with 53.00 and 50.40 as targets.

Resistance 63.00 64.75 66.60
Support 55.30 53.00 50.40

Euro (EUR)

Pivot : 1.1125 Last : 1.1136

Review:

The EUR/USD rose by 0.36% as U.S. inflation increased by 0.3%.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.1125 with targets at 1.1145 and 1.1155 in extension.

Alternative scenario:

Below 1.1125, look for further downside with 1.1115 and 1.1100 as targets.

Resistance 1.1145 1.1155 1.1170
Support 1.1125 1.1115 1.1100

British Pound (GBP)

Pivot : 1.3165 Last : 1.3207

Review:

The GBP/USD rose by 0.33% ahead of today’s general election.

Technical comment:

The RSI shows upside momentum.

Preference scenario:

Long positions above 1.3165 with targets at 1.3235 and 1.3255 in extension.

Alternative scenario:

Below 1.3165, look for further downside with 1.3135 and 1.3110 as targets.

Resistance 1.3235 1.3255 1.3290
Support 1.3165 1.3135 1.3110

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