Trading Central--MORNING MARKET UPDATE

Market Wrap: Stocks, Bonds, Commodities.

On Friday, all the three major U.S. stock indexes marked record-high closes, with the Dow Jones Industrial Average rising 395 points (+1.05%) to 37,863, the S&P 500 up 58 points (+1.23%) to 4,839, the Nasdaq 100 up 331 points (+1.95%) to 17,314.

Semiconductors & semiconductor equipment (+4.43%), banks (+2.36%), and media (+1.70%) stock sectors led the market higher.

Nvidia (NVDA) advanced 4.17% to $594.91, Meta Platforms (META) rose 1.95% to $383.45, and Microsoft (MSFT) gained 1.22% to $398.67, all closing at record-high levels.

At the same time, Advanced Micro Devices (AMD) jumped 7.11%, Broadcom (AVGO) rose 5.88%, and Lam Research (LRCX) was up 5.18%.  

Tesla (TSLA) edged up 0.15% to $212.19. The electric-vehicle maker is scheduled to report fourth-quarter results in after-market hours Wednesday (January 24).

On the other hand, iRobot (IRBT) plunged 26.93%, as the Wall Street Journal reported that the European Union may block the acquisition of the company by Amazon.com.

Meanwhile, the U.S. 10-year Treasury yield eased slightly to 4.130%. 

Regarding U.S. economic data, the University of Michigan consumer sentiment index rose to 78.8 in January (higher than 69.0 expected), a 17-month high. The number of existing home sales declined 1.0% on month in December (vs +0.3% expected). 

In Europe, the DAX 40 dipped 0.07%, the CAC 40 fell 0.40%, while the FTSE 100 edged up 0.04%.

U.S. WTI crude-oil futures dropped $0.32 to $73.76 a barrel.

Gold price added $6 to $2,029 an ounce. 

Market Wrap: Forex

The U.S. dollar softened against other major currencies. The dollar index retreated to 103.24.

EUR/USD climbed 21 pips to 1.0895. Germany's data showed that producer prices fell 8.6% on year in December (vs -7.8% expected).

The European Central Bank (ECB) is expected to keep its key interest rate unchanged at 4.50% Thursday (January 25).

USD/JPY was little changed at 148.14. The Bank of Japan is expected to keep its key interest rate unchanged at negative level of -0.100% Tuesday (January 23). 

GBP/USD was relatively flat at 1.2704. U.K. retail sales sank 3.3% on month in December (worse than a decline of 0.3% expected).

AUD/USD rose 27 pips to 0.6597.

USD/CHF added 3 pips to 0.8683.

USD/CAD declined 56 pips to 1.3429. Canada's retail sales dipped 0.2% on month in November (vs +0.2% expected).

Bitcoin showed a lack of upward momentum as it remained subdued at levels around $41,600. 

EUR/USD Intraday: the bias remains bullish.

Pivot:

1.2665

Our preference:

Long positions above 1.2665 with targets at 1.2715 & 1.2735 in extension.

Alternative scenario:

Below 1.2665 look for further downside with 1.2650 & 1.2635 as targets.

Comment:

The next resistances are at 1.2715 and then at 1.2735.

USD/JPY Intraday: intraday support around 147.85.

Pivot:

147.85

Our preference:

Long positions above 147.85 with targets at 148.50 & 148.80 in extension.

Alternative scenario:

Below 147.85 look for further downside with 147.65 & 147.40 as targets.

Comment:

Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

GBP/USD Intraday: bullish bias above 1.0870.

Pivot:

1.0870

Our preference:

Long positions above 1.0870 with targets at 1.0905 & 1.0920 in extension.

Alternative scenario:

Below 1.0870 look for further downside with 1.0855 & 1.0840 as targets.

Comment:

The RSI advocates for further advance.

Crude Oil (WTI)‎ (G4)‎ Intraday: the downside prevails.

Pivot:

74.30

Our preference:

Short positions below 74.30 with targets at 72.90 & 72.20 in extension.

Alternative scenario:

Above 74.30 look for further upside with 74.90 & 75.50 as targets.

Comment:

The RSI is bearish and calls for further decline.

Gold Intraday:intraday support around 2023.00.

Pivot:

2023.00

Our preference:

Long positions above 2023.00 with targets at 2033.00 & 2039.00 in extension.

Alternative scenario:

Below 2023.00 look for further downside with 2017.00 & 2012.00 as targets.

Comment:

A support base at 2023.00 has formed and has allowed for a temporary stabilisation.

.

.

.

#WeTradeGlobal# #USDollar# #USD/JPY# #GBP/USD# #EUR/USD# #trading# #forextrading# #howtomasterforextrading##tradingskill# #mytradingstory#