Dow Jones (13471.22, +0.60%) had a positive trend yesterday. It brings it close to its resistance at the levels of 13500 and 13650-700. The rise to 13700 is possible, but in order to do so the strong break above the resistances is needed. In case it occurs, we might see a strong rally. At the moment the trend is mixed. Asia is mixed as well: ASX (4730, -0.32%), Hang Seng (23320, -0.15%), and Nikkei (10778.24, +1.18%). Oil (93.87, +0.05%) gave up its gains and ended below the 94-95 resistances. Overcoming resistance didn’t help and it dropped back down anyway. But the reverse trend up is possible. Oil looks positive now and that suggests that the upside move can still be seen. If it is above 94-95, a rise towards 103 can occur. Gold (1673.10, -0.29%) has risen keeping above the 1650 level. Gold can rise towards 1700, but for that to happen it needs to close above 1675-80 this week. In case the crucial level doesn’t withhold, the fall to 1650 is likely. Silver (30.82, -0.32%) has also risen holding its 30.00 support. Silver is ranged meanwhile. The corridor is within the boundaries 29.75-31.75. Fluctuating in the range is assumed to be only in the near term. In order to determine the further trend we need to watch it for some time. However the uptrend is more likely due to the technical picture. Thus we might see it rising towards 34.The ECB left the rates unmodified and gave no signal for a rate cut in the future. It triggered a significant fall in the Dollar yesterday. The impact on the market was quite essential, what can be seen reflected on the currencies’ market.
The Euro (1.3256) has jumped and is going to test its important resistance at 1.3300. A breach of the resistance will open the way for continuation of the bullish trend. The goal is the level around 1.3500-3600.
Friday, January 11
9:30am GBP Manufacturing Production m/m
9:30am GBP Industrial Production m/m
1:30pm CAD Trade Balance
1:30pm USD Trade Balance
1:30pm USD Import Prices m/m
3:00pm GBP NIESR GDP Estimate
7:00pm USD Federal Budget Balance