Daily Markets Broadcast 2019-01-22

Daily Markets Broadcast

2019-01-22

US indices snap winning streak

US equity markets were closed yesterday, but index futures retreated following the release of China’s Q4 GDP data. PM May’s Plan B appears to focus on delaying Brexit to get better concessions from the EU.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index declined for the first time in five days yesterday as markets digested the slower China growth and less-positive headlines on trade negotiations
  • The index is facing a lot of convergent resistance points: 24,932 is the 61.8% Fibonacci retracement of the October-December drop; 24,961 is the 55-week moving average while 24,975 is the 200-day moving average
  • Wall Street reopens after yesterday’s bank holiday, with December existing home sales on the data slate. They are expected to fall 1.2% m/m, according to the latest survey of economists.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index snapped a four-day winning streak yesterday amid continued uncertainty surrounding the way forward on Brexit
  • The 55-day moving average at 11,078 could lend some technical support after it was breached on Friday
  • German ZEW economic sentiment is expected to show further deterioration in January, sliding to -18.4 from -17.5.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate edged higher in thin trading yesterday, touching the highest level in almost seven weeks as investors focused on future supply cuts
  • Prices are approaching the 38.2% Fibonacci retracement of the October to December drop at $55.539
  • The API weekly crude oil stocks data as at January 18 are due tomorrow. Lat week saw a drawdown of 560,000 barrels, the third consecutive weekly reduction.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.