Morning Note: US Dollar Strength, Apple’s Momentum, and Alibaba’s Critical Levels

US Dollar, Apple and Alibaba shares on the radar

The financial market begins 2025 with a series of important events and movements that could shape trends in the coming months. Economic indicators and technical movements highlighted in the market provide clues about investor expectations and the potential directions of specific assets. In the Forex Market, the US dollar is still gaining strength against its counterparts but now faces important levels of interest. Apple recorded excellent gains in 2024, but the question is if it will be able to maintain its growth through 2025.

Below are the main points:

Industrial sector slowdown in the US

The US ISM Manufacturing PMI will be closely watched, especially after recent readings around 48, indicating pessimism among purchasing managers in the US Industrial sector. Readings above 50 typically reflect optimism, while readings below this level suggest contraction. The industrial sector in the US has been slowing down, and investors will be paying close attention to the first measures taken by President Donald Trump, who has promised to revitalize the American economy.

Aussie at a key support level

The AUDUSD is currently in an extremely relevant support region on the weekly chart, a level that has already acted as support in 2008 and again in 2022. From a technical point of view, the pair could enter a bullish structure if it manages to break the downtrend line on the daily chart. This movement will be crucial in defining the pair's next steps as well as the monetary policy adopted by the FED and Australia’s central bank.

Will the EURUSD seek the 1.0000 mark in 2025?

The EURUSD started the first trading day of 2025 with a 0.86% drop and signalled the break of the support at 1.0450 on the daily chart. The appreciation of the US dollar in the last months was driven by Donald Trump's return to the US presidency. From a technical point of view, the break of the support in the daily chart suggests the possibility of the pair seeking parity at 1.0000 throughout 2025. It is worth remembering that the last time the price was below 1,0000 was in November 2022.

Did Apple start a retracement in the first trading day of 2025?

Apple shares started the first trading day of the year with a drop of over 2% after accumulating an appreciation of more than 33% in 2024, driven by good results in the latest earnings reports. The 237.00 USD region, which previously acted as resistance, could now act as support. The main question for 2025 is whether Apple will be able to maintain the upward movement and surpass new highs.

Alibaba at key support level. Will it resume its uptrend?

Alibaba shares have fallen almost 28% since October 7th, and they are now finding support at an important technical level on the daily chart. Despite this, the company's recent numbers have been slightly positive, raising doubts about a possible resumption of the upward trend in 2025. This support could be a crucial point in defining the future of the shares.

These events and movements provide a glimpse at the possibilities that the market could bring in the beginning of 2025.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.