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S&P 500: the beginning of the reporting season has disappointed investors​

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Current trend
Due to a not very positive start to corporate reporting, the leading index of the US economy, S&P 500, corrects downwards, trading around 4655.0.

Among the index's major components, financial conglomerate JPMorgan Chase & Co. was one of the first to publish its data, showing a quarterly income of $29.26B, which was below $29.65B a quarter earlier and $29.78B predicted by analysts. Despite the poor earnings performance, earnings per share were $3.33, well above the $3.01 expected. Bad news came from the large pharmacy chain Walgreens Boots Alliance. The company said some pharmacies would close over the weekend as the state is understaffed by the continued spread of the omicron strain. These reports come after fourth-quarter earnings of $33.9B were reported, well ahead of the $32.88B forecasted.

Securities again began to rise, putting additional pressure on the stock market. Leading 10-year US bonds are trading at 1.793%, up from Friday's 1.750%.

Growth leaders include Las Vegas Sands Corp. (+14.15%), Wynn Resorts Ltd. (+8.60%), and Discovery Inc. (+7.04%).

Among the decline leaders there are JPMorgan Chase & Co. (–6.15%), Monster Beverage Corp. (–4.73%), and Simon Property Group Inc. (–4.47%).

Support and resistance
The index quotes move within a global upward channel near the support line. Technical indicators reversed and gave a local sell signal: indicator Alligator's EMA fluctuations range expands downwards, and the histogram of the AO oscillator trades in the sell zone.

Resistance levels: 4710.0, 4800.0.
Support levels: 4593.0, 4500.0.
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Tesla Inc, General Review​

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Current trend
The stocks of Tesla Inc., the world's leading manufacturer of electric cars, continue the global correction, trading at 1049.00.

Due to a large amount of incoming information, the instrument's volatility remains high. Yesterday, the corporation announced that the production of the long-awaited new Cybertruck was postponed again, and its start is postponed to Q1 2023. It was previously planned to start work in the second half of 2022, but the delay is caused by the desire of the developers to make changes to the features and functionality of the truck.

Global sales of leading US assets by large investors continue. Following the head of Tesla Inc., Elon Musk, they began to sell shares and large funds. On Thursday, the ARK Innovation ETF and ARK Generation Internet ETF sold a total of 87.756K shares of the company for over $90M.

The financial report will be published on 26 January. Analysts expect quarterly revenue to reach a record $16.79B despite the sell-off and negative news, and earnings per share could hit $2.21.

Support and resistance
Quotes are moving within the corrective downward channel, after which the global uptrend may continue. Technical indicators keep a poor buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram moves close to the transition level.

Resistance levels: 1105, 1200.
Support levels: 1000, 892.

 

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EURUSD Elliot Wave Analysis

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The pair may grow.

On the daily chart, the first wave of the higher level 1 of (3) formed, and a downward correction developed as the second wave 2 of (3), within which the wave c of 2 formed. Now, the development of the third wave 3 of (3) started, within which the first wave of the lower level (i) of i of 3 forms. If the assumption is correct, the pair will grow to the levels of 1.1687–1.1907. In this scenario, critical stop loss level is 1.1268.​

 

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AUD/USD: Australian currency develops a "bearish" momentum​

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Current trend
The Australian dollar shows an active decline against the US currency during the Asian session, developing the corrective momentum of last Friday and testing the level of 0.7200 for a breakdown.

The US dollar is again in demand on the market amid expectations of an increase in interest rates by the US Fed. In addition, traders are somewhat concerned about the rapid increase in the dynamics of the incidence of coronavirus, which threatens the recovery of the global economy.

Support and resistance
Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is almost constant, remaining rather spacious for the current level of activity in the market. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic keeps a confident downward direction but is rapidly approaching its lows, which indicates the risks of oversold instrument in the ultra-short term.

Resistance levels: 0.72, 0.725, 0.73, 0.7328.
Support levels: 0.716, 0.7128, 0.71, 0.705.​

 

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ETH/USD
Singapore government rhetoric reinforces the "bearish" trend​

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Current trend
The ETH/USD pair started the current week with a decline within the general market trend.

Medium-term pressure on the sector is exerted by investors' expectation of a tightening of the monetary policy of the US Federal Reserve. The completion of the emergency program of bond purchases and the first increase in interest rates may occur as early as March, leading to further strengthening of the US currency. An additional negative factor for ETH could be the tightening of regulation of the cryptocurrency industry in Singapore. The other day, the country's monetary authority (MAS) banned the widespread advertising of digital assets and the installation of cryptomats. Officials explained their decision to complicate access to tokens to prevent rash trade in them and protect their citizens. All firms working with digital assets, including banks, payment services, and exchanges, fall under the new rules.

Singapore is one of the leading countries in terms of the population's degree of acceptance of ETH. According to experts, more than 43% of local traders own this particular cryptocurrency, and tightening regulation of the sector may make it difficult to work with the asset.

Support and resistance
Resistance levels: 3437.50, 3750.00, 4140.00.
Support levels: 3125.00, 2812.50, 2500.00, 2300.00.​

 

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Crude Oil, Market Analysis in 1 Minute​

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Current trend
During the Asian session, Brent Crude Oil prices are actively growing, testing the level of 87.00 for a breakout and renewing record highs since October 2018.

The quotes are moderately supported by the weakening of investors' fears that the rapid spread of the Omicron strain will negatively affect the pace of national economic recovery from the consequences of the coronavirus pandemic. In the meantime, indicators continue to stabilize, and the leading central banks are ready to continue the tightening monetary policy cycle. However, some skeptics still fear that the recovery in demand may not be able to keep with the increase in supply, given all the current risks.

On Monday, the quotes of "black gold" traded with restraint against the backdrop of news from Libya, where production volumes recovered to 1.2M barrels per day. Last week, it declined noticeably due to the blocking of several western fields.

Support and resistance
On the daily chart, Bollinger Bands steadily grow. The price range widens, but not as fast as the "bullish" sentiment develops in the short term. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Stochastic keeps a confident upward trend but is close to its highs, indicating that the instrument may become overbought in the ultra-short term.

It is better to keep the current long positions until the signals from technical indicators are clarified.

Resistance levels: 87.00, 88.50, 89.50.
Support levels: 86.00, 84.50, 83.50, 82.64.​

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Gold is consolidating at $1800​

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Current trend
Gold prices are consolidating near the psychological support at $1800, developing a weak downtrend since the end of last trading week. Demand for the precious metal is moderately declining as investor activity recovers. Traders ignore the difficult epidemiological situation in the world and focus on the prospects for further tightening of monetary policy by leading financial regulators. First of all, one should expect a rate increase from the US Federal Reserve and the Bank of England, while the European Central Bank is in no hurry to take active steps, waiting for more clear signals from the economy.
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The macroeconomic statistics from the US released the day before did not have a noticeable impact on the dynamics of the instrument; however, it attracted attention with a sharp drop in the new york Empire State Manufacturing Index. In January, the indicator fell from 31.9 to -0.7 points, while forecasts suggested a decline to only 25.7 points.

Today, investors are focused on the statistics from the US on the dynamics of the construction market and data from Canada on the Consumer Price Index for December. In turn, statistics on inflation in Germany and the UK will be released in Europe.​

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Support and resistance
In the daily chart, Bollinger Bands are reversing horizontally. The price range is slightly narrowing from above, reflecting the correctional decline in the short term. MACD is declining keeping a weak sell signal. Stochastic shows a more confident decline, but at the moment it is quickly approaching its lows, indicating growing risks of the instrument being oversold in the ultra-short term.

Resistance levels: $1814, $1823, $1831.
Support levels: $1805, $1800, $1790, $1778.32​

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EURUSD
European currency remains under pressure​

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USD/JPY
The US dollar corrects after a failed upside attempt

Current trend
The US dollar is developing mixed dynamics in Asian trading, consolidating near 114.50. The day before, the American currency made another attempt to grow and even renewed local highs from January 12, but it failed to consolidate on new positions, and USD/JPY ended the trading session near zero.

The pressure on the quotes of the instrument was exerted by not the most confident macroeconomic data from the US, while the yen took a lead from the decision of the Bank of Japan and moderately weak statistics on Industrial Production. The day before, the Japanese regulator made the expected decision to keep the monetary policy parameters unchanged. At the same time, the Bank of Japan adjusted its forecast for inflation, which, however, still does not create any tangible risks for the national economy. As for macroeconomic statistics, the released data reflected a slowdown in Industrial Production in November from 7.2% to 7.0%, and in annual terms it decreased from 5.4% to 5.1%.

Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is expanding from below, remaining spacious enough for the current activity level in the market. MACD is going down preserving a weak sell signal, located below the signal line. Stochastic, on the contrary, is showing active growth and has not yet reacted to the appearance of "bearish" dynamics.

Resistance levels: 115, 115.5, 116, 116.5.
Support levels: 114.5, 114, 113.5, 113.​

 

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XRP/USD Technical Analysis​

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Current trend
The XRP/USD pair continues to trade within the long-term descending channel.

Last week, the token price attempted to rise to the level of 0.7812 (Murray [0/8]), supported by the middle line of Bollinger Bands, but could not break above it and resumed the decline. Currently, the quotes are trying to gain a foothold below 0.7500 (Fibo retracement of 61.8%) in order to continue the downward trend to the area of 0.5860 (Murray [-2/8]) and 0.5110 (the area of the lows of July last year).

The 0.7812 level remains key for the "bulls". Its breakout will give the prospect of growth of the trading instrument to 0.9100 (Fibo retracement of 50.0%), however, this option of price movement seems less likely, since the indicators point out the continuation of the downward trend: the Bollinger Bands and Stochastic are directed downwards, the MACD histogram is stable in the negative zone.

Support and resistance
Resistance levels: 0.7812, 0.9100, 0.9766.
Support levels: 0.7500, 0.6836, 0.5860, 0.5110.​