Daily Market Report: October 12, 2020
Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.
October 12, 2020
Stimuli or No Stimuli – That Is the Question
U.S. stocks were higher after the close on Friday, as gains in the Technology, Consumer Services and Consumer Goods sectors led shares higher. The Dow Jones rose by 0.57%, the S&P 500 by 0.88% and the NASDAQ added 1.39% to its value.
The Dow Jones RSI advocates for further upside.
Long positions above 27,200 with targets at 29,550 & 30,800 in extension.
Below 27,200 look for further downside with 26,540 & 25,950 as targets.
The USD/JPY pair retreated on Friday, to close the week with modest gains around 105.60. The Japanese currency appreciated despite the ruling risk-on mood, as investors got rid of the greenback.
The RSI advocates for further downside.
Short positions below 105.80 with targets at 105.50 & 105.35 in extension.
Above 105.80 look for further upside with 105.95 & 106.10 as targets.
Gold prices rose for a second straight day and week on Friday, returning above the key $1,900 level, as revived hopes for new U.S. Covid-19 relief bills brought a rush of bids for the safe-haven asset.
The RSI is mixed with a bullish bias.
Long positions above 1916.00 with targets at 1933.00 & 1942.00 in extension.
Below 1916.00 look for further downside with 1905.00 & 1896.00 as targets.
Supply disruptions from evolving Hurricane Delta and a brief Norwegian oil strike helped crude prices reach near double-digit weekly gains, propping the market back in the green lane after two weeks in the red.
The RSI advocates for further downside.
Short positions below 40.75 with targets at 39.90 & 39.55 in extension.
Above 40.75 look for further upside with 41.40 & 41.70 as targets.
EUR/USD has been on the rise amid optimism about stimulus and President Trump’s recovery. Politics and the virus are set to have a growing impact on the pair in the upcoming week.
The RSI advocates for further advance.
Long positions above 1.1795 with targets at 1.1835 & 1.1855 in extension.
Below 1.1795 look for further downside with 1.1780 & 1.1755 as targets.
Both Brexit talks and the US fiscal stimulus saga have been dominating cable's trading, with hopes on both pushing the GBP/USD pair higher before adverse headlines doing the opposite. These two sets of deliberations compete with increasing coronavirus cases and data for attention next week.
The RSI is bullish and calls for further upside.
Long positions above 1.2990 with targets at 1.3050 & 1.3105 in extension.
Below 1.2990 look for further downside with 1.2950 & 1.2920 as targets.
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