Personal opinions today:

 

The European foreign exchange market resumed after 2 pm Beijing time, but European stock markets continued to be closed. Investors are concerned!

 

In the foreign exchange market, the US House of Representatives failed to formally approve government financial expenditures before the holidays, and some government departments need to stop operating from the Christmas holidays. The market is worried that the US government will stop operating and invisibly damage the US economy and produce negative images and emotions. Therefore, the US Dow continued to fall before the holiday. Today, the Dow futures opened, the trend is still weak, closing at the low on Monday. The US Dow fell, indirectly affecting Japan's Nikkei index. Japan's Nikkei index fell by a thousand points yesterday, a drop of 10%. As the Nikkei index fell, the dollar fell against the yen, once approaching the 110 mark. Global stock markets fell, driving gold prices up.

 

After the holidays are expected, the US House of Representatives continues to discuss the government funding bill. The current situation is estimated that the US government will stop operating until Friday 28th, short-term bearish US stocks and the US dollar. However, it is necessary to pay attention to the latest news of the market. If the US House of Representatives approves the approval, it will boost the US Dow and make a bullish dollar. You can reverse the market reaction before the holiday, so stay tuned and pay attention to trading risks.

 

Due to the Christmas holiday, some trading markets are still closed, Europe, Australia and Hong Kong stock markets are closed, and will resume tomorrow. In addition, there are no important economic data released today. Therefore, the US House of Representatives debates the government appropriations bill, which may be the only market focus. I believe that the answer can also be found in the performance of the US Dow.

 

Today's suggestion:

 

EURUSD

1.1415/1.1430 resistance

1.1370/1.1355 support

The European market is generally closed and there is no data to bring the euro to fluctuations. However, the U.S. government’s fiscal expenditure allocation was not passed before the holiday, which made the dollar weaker and indirectly benefited the European currency. If the US House of Representatives comes back after the holidays, and through the financial expenditures, it is believed that the US dollar may be stabilized and the euro will be indirectly negative.

 

GBPUSD

1.2735/1.2750 resistance

1.2655/1.2640 support

The European market is generally closed and there is no data to bring European currency fluctuations. However, before the holidays, the U.S. government’s fiscal expenditures were not approved, which made the dollar weaker and indirectly benefited the European currency. If the US House of Representatives comes back after the holidays, and through the financial expenditures, it is believed that the US dollar may be stabilized and indirectly negative.

 

USDCHF

0.9905/0.9920 resistance

0.9835/0.9820 support

The European market is generally closed and there is no data to bring European currency fluctuations. Before the US government did not receive funding from the US House of Representatives for fiscal spending, the dollar weakened and the European currency strengthened, which helped boost the Swiss franc. If the US House of Representatives passes the financial expenditure after the holiday, it is believed that the US dollar may be stabilized and the Swiss franc is indirectly negative.

 

USD/JPY

110.95/111.05 resistance

110.20/110.05 support

The fall in the dollar against the yen stemmed from the US government's failure to obtain funding, which caused the US Dow (US30) to fall, indirectly driving the Japanese Nikkei index (JP225) to fall, and the dollar fell against the yen. During the holidays, the USD/JPY is approaching the 110 mark. The market is watching the US House of Representatives through the fiscal expenditures in order to stabilize the market, thereby boosting the stock market and the dollar against the yen.

 

Australian dollar against the dollar

0.7035/0.7020 support

0.7070/0.7085 resistance

The U.S. government’s fiscal expenditure has not been allocated, some governments have temporarily closed down, and investment confidence has been damaged, but the Australian dollar has not benefited. On the contrary, affected by the weak economic forecast, the Sino-US trade war and copper price weakened, etc., the Australian dollar tested 0.7035 support. At the moment it is recommended to pay attention to the risk of chasing.

 

NZDUSD

0.6715/0.6700 support

0.6745/0.6760 resistance

During the Christmas holiday, the market is watching any development after the holidays, and the New Zealand dollar has a short-term adjustments, it is worthwhile to pay attention to 0.6715 and 0.6700 support.

 

USD/CAD

1.3600/1.3620 resistance

1.3560/1.3540 support

US crude oil prices continued to weaken, indirectly negative for the Canadian dollar, the US dollar against the Canadian dollar once again approaching the 1.3600 mark. The Fed is looking forward to maintaining the pace of interest rate hikes. It is believed that crude oil prices will continue to weaken and develop, so the Canadian dollar may further weaken. In the US dollar against the Canadian dollar, it is recommended to pay attention to the changes in oil price performance and the Canadian dollar.

 

EUR/GBP

0.9020/0.9035 resistance

0.8965/0.8940 support

Generally affected by the US factor, the euro and the pound are similar, but the euro zone economy and interest rate market outlook is better than the UK, the euro is higher against the pound. Technically, the euro may test 0.8940 against the pound.

 

EURCHF

1.1275/1.1300 resistance

1.1240/1.1225 support

At present, the euro is weaker against the Swiss franc and the support is 1.1275. The trend may fall further and there is a chance to further test the support of 1.1240 and 1.1225.

 

XAUUSD:

1273/1275 resistance

1265/1263 support

Some departments of the US government need to stop operating. The US House of Representatives failed to pass the fiscal expenditure allocation as scheduled. In the face of some government's suspension of operational crisis, market risks rose, and the US stock market fell, leading to an increase in gold. If the US House of Representatives finally allocates financial expenditures to reduce market risk, it will be short of gold. The market is watching and watching gold have downside risks.

 

US crude oil futures:

43.60/44.60 resistance

42.75/41.75 support

OPEC will start production cuts next month, but US President Trump’s remarks and the Fed’s rate hike expectations continue to hit oil prices. The market still waiting for further news. If there is a reduction in the US crude oil inventory report on Thursday, there will be an opportunity to rebound. Attention is currently underway but must be carefully reversed.

 

BTCUSD:

4200 / 4400 resistance 

3650/ 3450  support 

The US government's fiscal expenditure allocation can not be passed, making the dollar weaker and could positives for the Bitcoin. After the bitcoin adjusted and it's trying to rebound. Now recommend, US3450 is a key support.

 

Enjoy trading!  

The content is for reference only. Please do ensure that you understand the risk.

 

Information provided by AT Global Market, Chief Analyst of Asia Pacific: Martin Lam

Registered Australian Accountant/ Certified Professional Manager / Certified Financial Advisor Experienced Investor / Media Market Commentator Martin Lam has Over 17 years’ experience in global investment market. Familiar with the worldwide stock indices, precious metals such Gold and Silver, Crude oil and Forex. He operated Martin Currency Trading Company and had partnership with a number of well-known international financial corporations and institutions. Before he join ATFX, he was TeleTrade Greater China development and Sales Director. Mr. Lam attends Hong Kong Now TV and China CCTV finance channel once a week. He also had regularly invited by different media, such as DBC Digital Financial Channel, Hong Kong Economic Times, The Standard, Ming Pao to share his experience to trade in Forex, Precious metals, Crude oil and worldwide stock indices. 
Contact: cs.gm@atfx.com or wechat: ATFX_China

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