Trends to Extend; S&P 500, EURUSD & Gold/Silver Prices (Webinar)
In today’s webinar, we took a look at the trends which developed during November and have held strong into year-end. The combination of slow holiday trading conditions and extended markets has equated to a period of digestion. Recent trends may exhaust themselves not too far into January, but to begin we look for renewed market participation to continue the momentum.
More US dollar strength. EUR/USD is hanging out below former support formed during two key bottoms in 2015, and looking set to resume lower towards parity. GBP/USD is in a short-term ‘air pocket’ and may see sub 12100 this week. AUD/USD and NZD/USD are high on the radar for continued weakness. The latter having recently broken key support and not having much to the left until around 6700. USD/JPY has resistance around 119, but a break above opens the door for further upside to the 121-123+ area.
Gold and silver are showing no real signs of life in line with a consolidating US dollar. Lower prices look to be in store to start 2017. Gold to 1100 and lower, silver sub-15. On the upside, WTI crude oil doesn’t have a lot standing in its way until around 61.
Global indices are in extended territory – especially the Nikkei and DAX – but beginning of the year money flows could send them into loftier levels before becoming exhausted. The FTSE 100 is making an attempt on new record highs before the calendar flips. Continued strength there is expected. The S&P 500 is consolidating the move higher since the US presidential election, and poised to continue higher to start 2017.
For full considerations, please see the video above.
---Written by Paul Robinson, Market Analyst
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