US Indices Recovering After Debt-Ceiling Debacle. USD Slightly Weaker. Nikkei225 at Upper Trend Line. Forex Trading Short Silver XAGUSD.

In today’s GCI Market Outlook let’s take a look at Forex Trading on Gold XAUUSD, Silver XAGUSD, USDCHF, the Nikkei225, the Dow Jones Industrial Average, the S&P500, the NASDAQ.

The US Indices were recovering nicely last week, then it all went wrong again.

You may recall last time that Jerome Powell’s comments drove price action on the US Indices lower.

The recovery was going well, then the US government ran into a problem with the budget and the debt ceiling.

Prices fell again but Congress voted to approve the budget and the indices, like the NASDAQ here are recovering.

The Indices are recovering today and many traders are setting profit targets at the old levels and calling it this year’s Santa Claus Rally.

We are also watching the Nikkei225 as price action has recovered as well into this upper trend line.

You can see how both the MACD Histogram and the Stochastic Oscillator both signalled and confirmed the last 2 upturns so we will keep an eye on this.

If MACD is to be believed, watch for a break through the trend line.

With the circus in the US Congress somewhat under control, USD is weaker.

This has pushed gold up higher back to this key zone of supply and demand.

The stochastic oscillator is overbought and crossing over so be careful and wait for a trend.

We are seeing a downtrend on silver with price action at an upper trend line and the stochastic oscillator overbought here as well.

Wait for confirmation before going short.

The economic calendar is very quiet right now, for obvious reasons and everyone at GCI wishes you and yours a very happy holiday!

We will be back on Friday.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.