S&P (SPX 500) grinds all-time high
The S&P (SPX 500) advances to a fresh peak as the market continues to ride the Trump wave. The index is flirting with the all-time high above 6080. The price action is at a crossroads as the next step could shape the direction for the early months of the new year. A bullish breakout would bring in momentum traders at first and trigger a runaway rally, paving the way for fresh highs. However, a retreat below 5950 would force more buyers to take profit in addition to fresh selling from the bears, potentially triggering a correction.
EURUSD bouncing back
The US dollar drifted lower as Donald Trump weighed up fresh tariffs in his first few days in charge. The pair is holding onto its gains after clearing the recent resistance of 1.0350. The upbeat mood could continue to attract buying interests looking to reclaim this month’s peak above 1.0400. On the downside, 1.0310 is the immediate support, while 1.0250 is a critical level to maintain the current momentum.
USDJPY fades lower
The yen inched higher as the Bank of Japan expressed optimism about achieving inflation targets. The pair is currently consolidating after dropping over 300 pips, as the limited rally came to a halt at the round number of 155.00, suggesting that buyers are still in the market. This round number is key to keeping the greenback afloat in the near term. 156.20 is the first obstacle to initiating a meaningful comeback.