The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
JPM, BAC, CITI: three destinies
Next week, we are going to have quarterly reports from our favorite banks: JPMorgan and Citigroup on Tuesday (15:30 MT and 17:00 respectively), and Bank of America on Wednesday (15:30 MT). What do their stocks have from the technical perspective so far?
JPM and BAC present very similar pictures. A launch from the bottoms of mid-summer, unstable growth, tactical high at the end of July, trembling, then a slump to the same bottom of mid-summer. Currently, both banks are recovering the losses from that slump, with JPM being closer to the summer heights and the BAC a bit slower.
With Citigroup, the picture is a bit different. This stock has been trading flat between $49 and 53$ per share since May. Only recently it left this sideways channel with the rest of the sectors to drop to slightly above the April supports. Currently, it is recovering, and still has a considerable distance to cover before it comes back to the range of $49-53 it was in during the summer.
If you like a general fundamental outlook, it will be fair to say that JPM stock is more volatile, BAC is somewhat more optimistic, and Citigroup is the slowest among the three.
So be there for the quarterly reports on Tuesday and Wednesday, and make sure you set you trades accordingly.
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On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.