Wall Street Rebounds Ahead of Christmas Holiday

Wall Street closed higher in yesterday's session, ahead of the Christmas holiday, with many markets expected to be closed. The “Santa Claus” rally, a phenomenon where markets often close positively in the final week of the year, is likely to have a positive impact on equity markets in the coming days.
PU Prime | 197 days ago
  • Wall Street edged higher in the last session before the market closed for the Christmas holiday.
  • The U.S. Dollar rebounded as the market perceived a more hawkish approach from the Fed in the near term.
  • The Pound Sterling was hammered by the low GDP reading coupled with the recent poor UK economic indicators. 

 

Market Summary

Wall Street closed higher in yesterday's session, ahead of the Christmas holiday, with many markets expected to be closed. The “Santa Claus” rally, a phenomenon where markets often close positively in the final week of the year, is likely to have a positive impact on equity markets in the coming days.

Meanwhile, the U.S. dollar rebounded, supported by a rise in the U.S. long-term treasury yield, which reached its highest level since May. The Federal Reserve is anticipated to maintain a restrictive monetary policy into 2025, driven by a resilient U.S. economy and the potential for inflationary pressures to persist.

In contrast, the Pound Sterling came under pressure after the downbeat GDP reading released yesterday, suggesting that the Bank of England (BoE) may be inclined to implement more aggressive rate cuts in the near term. Similarly, the Japanese Yen also traded lower, as the Bank of Japan (BoJ) monetary meeting minutes revealed a more cautious approach regarding rate hikes, undermining the Yen's strength.

 

Current rate hike bets on 29th January Fed interest rate decision: 

Source: CME Fedwatch Tool

0 bps (91.4%) VS -25 bps (8.6%) 

 

Market Movements

DOLLAR_INDX, H4

The U.S. Dollar climbed in yesterday's session, hovering near its highest level of the week as it continued to draw support from rising U.S. Treasury yields, which have surged to their highest levels since May. However, with the Christmas holiday approaching, trading activity is likely to slow, and the dollar is expected to stay relatively calm in the near term

The dollar index rebounded from its support level at 107.60 mark but has yet to reach its previous high level, potentially forming a "head-and-shoulders" price pattern. The RSI remains close to the 50 level while the MACD continues to slide, suggesting that the bullish momentum is easing. 

Resistance level: 108.60, 109.50

Support level: 107.60, 106.75

 

XAU/USD, H4

Gold slipped in yesterday’s session but found support above the $2600 mark, indicating that it may still be trading within its bullish trajectory despite recent weakness. However, the strengthening U.S. Dollar and hawkish expectations from the Federal Reserve are likely to cap further gains and hinder upward momentum for the precious metal. Additionally, signs of a slowdown in central bank demand for gold have weighed on prices, adding to the downside pressure. 

Gold is currently hovering above the $2605 mark; a break below such a level shall be a bearish signal for the gold. The RSI remains kept below the 50 level while the MACD edged higher, suggesting that the bearish momentum is easing. 

Resistance level: 2656.00, 2718.00

Support level: 2556.00, 2485.65

 

GBP/USD,H4

The GBP/USD pair posted a marginal decline in the previous session, pressured by a strengthening U.S. dollar and a lackluster UK GDP report that failed to meet market expectations. Technically, the pair is consolidating within an asymmetric triangle pattern, signalling neutral momentum as traders await a breakout direction. Fundamentally, the Pound Sterling faces continued downside pressure amid soft economic data and dovish expectations from the Bank of England. Meanwhile, the U.S. dollar remains supported by rising Treasury yields and hawkish Fed sentiment, which could further weigh on the pair in the near term.

Despite the GBP/USD pair having a higher-low but a lower-high price pattern, suggesting a neutral signal for the pair. The RSI remains below the 50 levels while the MACD hovers flat below the zero line, suggesting that the pair remain trading with bearish momentum. 

Resistance level: 1.2620, 1.2700

Support level:1.2506, 1.2410

 

EUR/USD,H4

The EUR/USD pair faced rejection at its resistance level of 1.0445 and posted a marginal decline in the last session. Technically, the pair needs to hold support above the 1.0400 level to sustain its bullish trajectory. A break below this support could shift the outlook to bearish in the near term. Fundamentally, the euro continues to lack key catalysts, leaving it vulnerable to downside pressure from a strengthening U.S. dollar. 

The EUR/USD is trading in a higher-high price pattern; should the pair fail to create another high, the pair might be forming a "head-and-shoulders" pattern, which is a bearish signal for the pair. The RSI remains low while the MACD edges higher, suggesting that the bearish momentum is easing.

Resistance level: 1.0445, 1.0608

Support level: 1.0324, 1.0238

 

 

USD/JPY, H4

The USD/JPY pair rebounded from above the Fair Value Gap (FGV), signaling a bullish bias for the pair. The Japanese Yen's strength was dampened by the latest BoJ monetary policy minutes, which revealed that most board members maintained a dovish stance regarding rate hike decisions. This shift in expectations has weakened market sentiment for an early rate hike next year, further undermining the Yen's strength and supporting the USD/JPY pair in its bullish trajectory.

The pair has rebounded from the FVG, suggesting a bullish bias for the pair. The RSI remain elevated while the MACD slides lower, suggesting that the bullish momentum is easing slightly. 

Resistance level:160.05, 163.80

Support level:  154.00, 152.00

AUD/USD, H4

The AUD/USD pair has been trading in a sideways range after previously following a bearish trend. A break below the current sideways range would be interpreted as a solid bearish signal for the pair. The RBA meeting minutes, released today, indicate that the Reserve Bank of Australia remains confident in taming inflation. However, the central bank also reiterated that it will maintain restrictive interest rates until the targeted inflation level is achieved, suggesting that monetary policy will stay tight for the time being.

The pair has been ranging lately, which has given a neutral signal for the pair. The RSI remains below the 50 level while the MACD is edging higher from the bottom, suggesting an easing in bearish momentum. 

Resistance level: 0.6276, 0.6345

Support level:0.6205, 0.6130

 

CL OIL, H4

Oil prices experienced a slight rebound but failed to reclaim previous high levels, indicating that the commodity remains within its bearish trajectory. Market sentiment continues to be influenced by global supply dynamics. Reports of Bulgaria purchasing Russian oil, despite sanctions imposed by the U.S. and its allies, have eased supply pressures globally and further weighed on prices.

The oil prices remain trading in a downtrend manner despite a marginal gain witnessed in the last session. The RSI remains kept at below the 50 level while the MACD is flowing flat at below the zero line, suggesting that the oil remains trading with bearish momentum. 

Resistance level: 69.90, 72.30

Support level: 68.25, 67.00

 

 

 

Regulation: FSA (Seychelles), FSCA (South Africa)
read more
ATFX Market Outlook 9th July 2025

ATFX Market Outlook 9th July 2025

On Tuesday, U.S. President Donald Trump escalated the global trade war by announcing a 50% tariff on imported copper and reiterated that long-threatened tariffs on semiconductors and pharmaceuticals are also imminent. U.S. equities ended mixed as investors awaited further clarity on trade policy. The Dow Jones Industrial Average fell 0.37%, the S&P 500 dipped 0.07%, while the Nasdaq edged up 0.03%
ATFX | 1h 42min ago
Gold Drops Below $3,300 as Fed Rate Forecasts Shift

Gold Drops Below $3,300 as Fed Rate Forecasts Shift

Gold prices fell below 3,300 USD per troy ounce on Wednesday, extending losses after a 1% decline the previous day. The downward pressure stemmed from the Federal Reserve’s cautious stance, which partially offset concerns over escalating trade tensions.
RoboForex | 2h 2min ago
Oil and Copper Surge as Geopolitical and Trade Risks Escalate | 9th July, 2025

Oil and Copper Surge as Geopolitical and Trade Risks Escalate | 9th July, 2025

On July 9, oil jumps above $67.00 on renewed Red Sea attacks, while copper surges past $5.50 after Trump vows 50% tariffs if re-elected. DXY edges up past 97.50 ahead of FOMC Minutes. China’s CPI surprises slightly at 0.1% YoY, offering mixed signals. AUD/USD trades flat, and markets brace for further volatility driven by Fed outlook and trade policy threats.
Moneta Markets | 5h 20min ago
EUR/USD Declines as Markets Await US Tariff Developments

EUR/USD Declines as Markets Await US Tariff Developments

The EUR/USD pair dropped to 1.1746 on Tuesday, with the US dollar holding a slight edge before correcting. The greenback faced pressure after Donald Trump announced new tariffs on 14 countries that have yet to secure trade agreements with the US.
RoboForex | 1 day ago
Central Bank Outlook and Trade Shift Sentiment | 8th July, 2025

Central Bank Outlook and Trade Shift Sentiment | 8th July, 2025

On July 8, gold slips below $3,350 as risk appetite improves. Silver holds steady near $36.90, while AUD/USD rises to 0.6855 ahead of the RBA decision. USD/JPY surges above 161.00 as BoJ tightening bets fade. PBOC sets USD/CNY at 7.1534, signaling stability. Focus now shifts to US CPI, central bank guidance, and trade progress for market direction.
Moneta Markets | 1 day ago
ATFX Market Outlook 8th July 2025

ATFX Market Outlook 8th July 2025

U.S. President Trump signed an order delaying “reciprocal” tariffs from July 9 to August 1 and warned of steep hikes from that date, escalating trade tensions. U.S. stocks closed sharply lower, with the Dow down 0.94%, the S&P 500 falling 0.79%, and the Nasdaq dropping 0.92%. Tesla also tumbled after Elon Musk announced plans to launch a new political party.
ATFX | 1 day ago
Yen Weakens as Japanese Data Sends Mixed Signals

Yen Weakens as Japanese Data Sends Mixed Signals

The USD/JPY pair edged higher on Monday, reaching 144.81, as the yen relinquished its earlier gains. The currency faced downward pressure following the release of disappointing wage figures, which dampened expectations for further monetary policy tightening by the Bank of Japan.
RoboForex | 2 days ago