Stocks Consolidate at Multi-Month Highs Ahead of Christmas

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

Bitcoin Under Pressure

Stocks Consolidate at Multi-Month Highs, Bitcoin Under Pressure

December 20, 2019

Asian indices ended mixed on the trading session day in thin volumes ahead of Christmas as investors digest the phase one trade deal,  and the headlines from Washington after the U.S. House of Representatives voted to impeach President Trump for abuse of power. Senate which is controlled by Republicans also needs to vote the impeachment. 

The Nikkei 225 index ended 0.20% lower at 23,816 after the Bank of Japan kept its interest rates unchanged yesterday. The BoJ downgraded its view on industrial production and saw overseas risks as significant. The Hang Seng index is 0.09% higher at 27,826. The Singapore FTSE Straits Times benchmark is 0.08% lower at 3,204 while the Shanghai Composite is 0.24% lower at 3,009. The ASX 200 finished 0.25% lower at 6,816.  

European indices trade higher in thin volumes today, DAX is 0.36% higher at 13,258, the CAC40 is 0.20 per cent higher at 5,984 while the FTSE MIB in Milan is 0.84 per cent higher at 23,906. In London, the FTSE 100 is 0.11% higher at 7,582.  A new front of concern for European traders is the tariffs that the U.S. might increase to European products. Trade Representative Lighthizer said yesterday that the U.S. might increase tariffs on European imports as it tries to shrink its trade deficit with the EU. 

In commodities, the crude oil trades 0.07 per cent lower at $61.13 at two-month highs after OPEC+ agreed to reduce oil output by 500,000 barrels per day until June. Brent oil is trading 0.09% higher at $65.65 per barrel on improved global growth prospects. Gold prices trade 0.01% higher at 1,478, on renewed Brexit worries. The short term momentum is neutral as the gold price hovers above the 20-day Moving Average and below the 50 and 100-day Moving Average. On the other hand, significant resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.       

BTCUSD Daily Chart

In crypto markets, BTCUSD retreated yesterday and continues lower today at $7,111 hitting the daily low at $7,062 and the daily high at $7,153. BTCUSD momentum is still bearish as the crypto pair trades below the 100 and 200-day MA. First support for bitcoin stands now at $6,400 recent low, while the next support level holds at 6,000 round figure.

On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum trades lower today at 125.53 with capitalization now at 13.93 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 117.09 daily low, Litecoin (LTCUSD) is trading flat at 39.20. The crypto market capitalization has dropped at $190.37 billion.

In the Lookout: The Japanese government approved a budget for JPY 102.70 trillion for the fiscal year 2020.  The Japan National Consumer Price Index came in at 0.5%, topping forecasts of 0.2% in November. 

The central bank of China (PBOC) set the Yuan reference exchange rate (USDCNH) at 7.0020 versus yesterday’s settlement at 7.0025.


Trading Perspective: In fx markets, the US dollar index trades 0.01 per cent lower at 97.40, the AUDUSD trades 0.17 per cent higher at 0.6897. NZDUSD trades 0.11% lower at 0.6605 on better-than-expected 3Q economic growth data. USDCHF is 0.25% higher at 0.9806.

GBPUSD trades 0.28% higher at 1.3045  as we are getting closer to the Brexit deadline on January 31st, 2020. The first support for the sterling against the dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.

GBPUSD Daily Chart

EURUSD trades 0.02% lower at 1.1118 as the pair’s momentum is positive now for the short term. The first resistance for the eurodollar stands at 1.1199 recent high. On the other hand, the first support is at 1.1113 today’s low and then at 1.11.

USDJPY is trading 0.03% lower at 109.56, having hit the daily low at 109.25 and the daily high at 109.39. USDJPY pair will meet support at 105.43 the low from August 22nd. On the upside, resistance for the USDJPY now stands at 109.69 recent high.

USDCAD trades 0.06% higher at 1.3133, the pair will meet support at 1.3017 the YTD low while the next support level stands at 1.30 round figure. On the upside, resistance will be met at the 1.3355 the top from September 3rd before a move up to 1.3450 high from 31st May. 

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