19.04.202111:16 Forex-elemzések és áttekintések: Overview of the US market on April 19

US indices hit new all-time highs last Friday. To be more specific, the DJIA gained 0.5%, while the S&P 500 jumped by 0.4%.

As for the Asian markets, China indices rose by 2% this morning, while Japan indices increased by 0.2%.

But this scenario may change because the ECB will meet this week to discuss its further actions on monetary policy. To date, indicators have become negative, especially amid new lockdowns in many states. The ECB is expected to retain its super-soft policy.

Going back to the US market, it is clear that indices are overheated. In fact, in the S&P 500, there is a 230-pip gap from the 50 MA, which means that a 5% decline may occur soon.

Forecasts:

The DJIA is currently at 34.210 points. Growth is still ongoing, but a correction is long overdue. In fact, all signals are pointing to a strong pullback, which will happen amid very bad economic reports. The index is forecast to close at 33.900 - 34.500 points today.

As for the USD index, it is at 91.60 points at the moment, but it is projected to close around 91.20–91.80 points today, depending on the sentiment in EUR/USD.

Meanwhile, USD/CAD went down to 1.2505 after an increase in world oil prices. It is expected to range between 1.2400-1.2600 today.

Conclusion. The market is waiting for a strong pullback, as investors need it for new buy levels. Nevertheless, the state of the US economy is strong, even if the coronavirus has not completely retreated yet. Authorities are confident that the ongoing crisis will end soon.