U.S. Stock Market
Wall Street finished lower on Monday. The Dow fell by 1.35%, the NASDAQ by 1.84%, and the S&P 500 lost 1.42% from its value. On the 1-hour chart, the NASDAQ is trading below its moving average at 6,942 with a negative MACD indicator. This may take the index towards lower areas around 6,700, while breaching the SMA may start a retracement towards 7,100.
Johnson & Johnson (JNJ)
Johnson & Johnson lost 2.57%, closing at 130.25. On the 4-hour chart, the share is trading below its moving average at 132.37 with the ADX indicator below 20. This may take the share lower towards 126.00. However, breaching above the SMA may take it back up towards at 135.00.
U.S. Dollar (USD)
The U.S. Dollar traded lower against the other major currencies on Monday, weighed by a sharp rise in sterling as the UK and EU reportedly reached an agreement on a post-Brexit transition period and the Irish Border.
Gold traded higher, closing at $1,316 an ounce with expectations that the Federal Reserve will hike interest rates later this week. According to the 2-hour chart, gold is trading above the mid-band of the Bollinger band indicator at 1,314 with an ADX indicator above 20. This may take gold even higher toward 1,330, while breaking below the mid-band may start a strong bearish trend towards 1,300.
Crude Oil traded almost unchanged, closing at $62.22 a barrel, with Saudi’s ramp up in diesel and gasoline exports in January added to negative sentiment. On the 4-hour chart, oil is trading above the mid-band of the Bollinger Band indicator at 61.62 with an RSI indicator above 50. This may lead oil up towards 65.00, while breaking below the mid-band may take it back down towards 60.00.
The euro traded higher versus the dollar, closing at 1.2337. On the 4-hour chart, the pair is trading above the mid-band of the Bollinger Band indicator at 1.2316 with a positive MACD indicator. This may take the pair higher towards 1.2500, while breaking below the mid-band could lead the pair back down towards 1.2100. Today, the German ZEW Economic Sentiment is expected at 13.1 vs 17.8 previously.
British Pound (GBP)
The Pound traded higher versus the dollar, closing at 1.4024. On the 8-hour chart, the pair is trading above its moving average at 1.3941 with an ADX indicator above 20. This may take the pair up towards 1.4300, while breaking below the SMA may start a strong bullish trend towards 1.3800. Today, the CPI is expected at 2.8% vs 3.0% previously.