Market Movers Update, 17 January 2022

Good day,

We are slowly squeezing more and more time looking at charts as well as analysis. Happy to say, that some of that will be shared with you guys once again, just like we did the previous year. Hope it stays informative and you can take something out of it.

Let’s dive in!

What moved the markets?

Stocks. The stock market is closed today for Martin Luther King Jr. Day. Maybe a day off is just what the market needs to score its first winning week of 2022. Yes, only red is apparent so far.

JPY/CNY. China’s central bank is cutting its key interest rate. For the first time in almost two years, the economy started to lose momentum whilst facing repeated virus outbreaks.

USD. A combo of Omicron disruptions, higher inflation, and shortages of everything has caused forecasters to lower their projections for economic growth this quarter. Analysts are dropping their Q1 forecasts to 3% annual growth from 4.2% back last year.

Overall. More and more laws are coming out regulating securities trading in the US. Congress now is banning all lawmakers away from their trading accounts. More here:

DXY Analysis – last months outlook

Ranging market, that is the first thought we get once we look at the dollar index for the past month or two. We started December with the last push towards the 97.00 level and with failure there, we ranged between 97.00 and 95.5. A very tough market to trade, look for profitable positions and predict, especially if you are not a day trader.

Almost a month and a half of no real price action were followed by a strong push towards new lows at 95.600 levels and we have turned previous resistance into support and bounced back once more towards the initial consolidation range.

Our expectation? We believe that previous daily lows will turn into resistance and we will see yet another push towards 94.00 and maybe even 93.00 level. However, as we have been Bullish last year on Dollar Index, nothing has changed our minds this year so far either. 98.00 is just a few weeks away from being reached if the market turns, so this is where our eyes are focusing on the long term.

Let’s see where it goes!