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Hey Traders,
As we enter the festive season, market movements remained contained. Although we observed some relative large price swings in equities, most moves are retraced closing off the week. Durable goods order came in weaker and is considered one of the leading economic indicator. A weaker number generally means that consumer are less willing spend on large purchase item as they are uncertain on the time ahead (recession). However, the University of Michigan (UoM) Consumer Sentiments came in higher than expected and compared to previous month, displaying consumer confidence in the economy.
From these reports we can see that despite consumer confidence in the economy, they are still relatively reserved in spending. Potentially being hopeful that the FEDs will steer the economy off of recession and discounting the FEDs resolve to raise rate above 5%. With this being said, any hawkish comments or actions from the FEDs will likely destroy the market sentiment and potentially send risk on assets down and fast.
As we enter the last week of the year. Economic calendar is light and price movements in the market is likely to remain contained.
Upcoming Economic Release:
S&P500 Futures
The S&P500 traded in a range between 3800 region and 3900 region this week. This week price action played out exactly based on what we mentioned on our previous post that bearish momentum is likely to pause before heading to the 3815 region. Price rejected the 3915 resistance region before dipping lower. Any breakout confirmation of the 3915 resistance region can potentially indicate more upside movement while any breakout confirmation of the 3815 region can potentially indicate more downside movement.
Dollar Index (DXY)
The United States Dollar Index continues to trade in consolidation but due to time factor, price is now trading above the descending trend line with the 50 period exponential moving average (EMA) as the next form of resistance. We will reiterate that even though the Dollar is trading below the 105.0 key level, price is still trading relatively close to the level. Upside potential is still possible if the Dollar managed to trade above the 105.00.
Gold Futures
Gold continues to trade in consolidation between 1790 support region and 1820 resistance region. Short term ascending trend was formed at the consolidation period. Breakout confirmation will likely indicate the next direction of Gold. A breakout of the 1790 support region can potentially push price towards 1747 while a breakout of the 1820 resistance region can potentially push price towards 1850 region.
Trade Recap
No Updates
Trade Analysis / Setups
NZD/CAD (Analysis 52-1)
Analysis: Price is currently on a downtrend where we will look for potential short opportunity once there is a reversal confirmation at the minor resistance region at 0.85925.
Short opportunity: Reversal confirmation at 0.85923 resistance region towards 0.85437 as Take Profit - 1.
Wishing everyone a blessed Christmas~!
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