Daily Abstract’s Hot Topics:
- DOLLAR – FOMC, Federal Reserve maintains an unchanged interest rate at the end of the Yellen age.
- NZD – Kiwi the best currency performer of the session aided by the investors’ confidence in market conditions.
- FAANG – AMAZON despite the bullish gap, closes lower
- FAANG – GOOGL and AAPL close mixed before the earnings release.
- CRYPTOS – BTC tests the psychological 10,000 support.
Main currencies daily performance.
DOLLAR – FOMC, FEDERAL RESERVE MAINTAIN AN UNCHANGED INTEREST RATE AT THE END OF THE YELLEN AGE.
The Federal Open Market Committee (FOMC) members in their last meeting of the Yellen age have decided to maintain the interest rate unchanged at 1.50%. The labour market has continued to strengthen and economic growth has risen. This meeting has been the end of the Janet Yellen era as chair, next month the chair will be the Republican Jerome Powell, who has been confirmed by the Senate on January 24.
Our vision still considers a probability of turning bullish; if the index consolidates above the weekly pivot, our forecast will have more confidence in selling the Euro <EURUSD>. Additionally, we are positioned to sell the Euro from 1.250 level (see long-term pick EURUSD Watching the Weekly F38.2 )
US Dollar Index 1-hour chart ( click on the image to enlarge)
EUR-USD 30-min chart ( click on the image to enlarge)
NZD – INVESTORS’ CONFIDENCE IN MARKET CONDITIONS THE BOOST KIWI.
Favourable market conditions are boosting New Zealand’s agro-industry; the central factor has been the increase of the dairy products exports. Dairy products and their derivatives are the most relevant contributors to exports, about 95% of New Zealand dairy products are exported.
On the technical side, the Kiwi is making a consolidation structure; we expect if it breaks down, the target level is the confluence between Daily S2 and Weekly S1, the zone from the Kiwi could find buyers again.
NZD-USD 1-hour chart ( click on the image to enlarge)
FAANG – AMAZON DESPITE THE BULLISH GAP, CLOSES LOWER
In the last session, Amazon <AMZN> opens higher by 1.53%, boosted by the project between Amazon and Berkshire Hathaway (the Warren Buffett’s company) to create a healthcare company with “reasonable costs”.
The chart shows us a clear bull trend. Bullish positions must be considered above the confluence between Daily R2 and Weekly R2, which could be working as strong resistance.
Amazon <AMZN> 1-hour chart ( click on the image to enlarge)
FAANG – GOOGL AND AAPL CLOSE MIXED BEFORE THE EARNINGS RELEASE.
Google <GOOG> has been the best performer of the session with a 0.88% advance, aided by the expectation before the earnings release, which will be after the closing market; the analyst consensus expects $31.87B of revenues and $9.98 earnings per share (EPS).
We expect that GOOG reaches the weekly R1 level ($1,191.32) during the session, a zone that could find sellers.
Google <GOOG> 1-hour chart ( click on the image to enlarge)
Another company that will release earnings, after the market closes, will be Apple <AAPL> which has closed with a -0.17% performance. The analyst expects $77.25B of revenues and $3.85 EPS.
In the AAPL case, it is probable that it will reach the 164.22 level, the zone from where it could find buyers to the weekly pivot point (173.60).
Apple <AAPL> 4-hour chart ( click on the image to enlarge)
CRYPTOS – BTC TESTS THE PSYCHOLOGICAL 10,000 SUPPORT.
In the last session and the past week, Bitcoin <BTCUSD> has been testing the psychological level $10,000; we expect that BTC plunges to $8,074 level as a continuation of the bearish cycle started on the 17th December 2017.
BitCoiun <BTC> 4-hour chart ( click on the image to enlarge)