December is here, mostly it’s a month of reflection and relaxing. And when it comes to trading the volatility in the markets is expected to be very low after the second half of the month due to less trading activity. So, these days you need to have the Patience to find the most probable trading setups. We wish you a great month of trading.
Wall Street ended sharply lower on Tuesday after US FED chair Powell stated that US central bankers would discuss ending bond purchases in December, a few months earlier than expected.
Crude oil prices struggling to find the upside momentum after the API inventory report, focus shifts to OPEC+ meeting. The API data showed a draw of 747,000 barrels for the week ending Nov. 26.
In the currency market, the Euro recovered after a steep fall in the previous trading session. Meanwhile, ECB Vice President Luis de Guindos indicated that any interest rate increase would only come “shortly after” quantitative easing ends. “I’m confident that those net purchases will continue throughout next year. Beyond that, I don’t know,” de Guindos said.
The safe-haven metal hits a new session high of $1794. On Tuesday, the metal fell below the $1780 level following the hawkish remarks from Federal Reserve chair Jerome Powell.
On the data front, Australia reported the latest GDP numbers. The GDP came -1.9% in the last quarter, better than expectation of -2.7%.
Moving ahead today, the important events to watch:
US –ADP employment report: GMT – 13.15
US – ISM manufacturing PMI: GMT – 15.00
Worldwide, more than 262 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 48 million cases and has had more than 775,000 deaths from COVID-19, the highest totals in the world.
Dollar Index: The index trades flat on Wednesday. Moving ahead to the North American session, the USD traders should closely monitor the release of U.S. ADP data.
The important levels to watch for today: Support- 95.75 and 95.50 Resistance- 96.20 and 96.45.
GOLD: The precious metal trades above $1785. For today, as long as the metal trades above $1768 levels, the medium-term uptrend will remain in place. On the downside, $1776 is the immediate support level, followed by $1770. Further selling pressure will intensify only if the metal break below $1768 levels again.
The important levels to watch for today: Support- 1776 and 1770 Resistance- 1786 and 1795.
Quote of the day - "Learn to take losses. The most important thing in making money is not letting your losses get out of hand." -Marty Schwartz.