EUR/USD returned to 1.1450, USD/JPY falls below 110.50, but GBP/USD is passively hanging close to 1.2650. Positive recovery is recorded by AUD, NZD, and CAD.
However, Asia is not quite bold to pull the move and Japanese Nikkei225 fell 0.31 percent. Chinese Shanghai Composite grows 0.3 percent.
On Friday, December 28, the event calendar is light with important data releases, but the global investors should keep an eye on German CPI and Import Prices data, KOF Economic Barometer data from Switzerland, Chicago Purchasing Managers Index data, Wholesale Inventories, and Good Trade Balance data from the US.
SPX analysis for 28/12/2018:
The stock market in the US made a rally in the last hour of trading, which allowed positive close at +0.86%. In two days, the index gained 5.9 percent, which is the best result since August 2015. Dow Jones gained 800 points in less than an hour. It might go even higher after the US data will be published, as well as the most important Chicago Purchasing Managers IndexChicago PMI, a monthly measure of the business conditions based on surveys of purchasing managers across Illinois, Indiana and Michigan. Released on the last business day of the reporting month, the report's significance has recently declined as it precedes the more anticipated ISM report. Subsequently, it is used to predict the ISM report as the Chicago survey retains a high correlation with the broader economic release.
Referring to a benchmark of 50, the report is considered to reflect expansion with a reading of 50 or higher. Conversely, a reading of 49 and lower would indicate contraction.
Let's now take a look at the SPX technical picture at the H4 time frame. The market has broken above the 23% Fibo level and closed at the level of 247.96. The next target for bulls is the technical resistance at the level of 249.71, which is just below the 38% Fibo at 251.55. The market conditions are still oversold, but the momentum indicator is pointing to the north, supporting the short-term bullish outlook.
