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. Stock Market

Last: 28,575

Pivot: 27,200

Review:

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.

Technical comment:

The Dow Jones RSI advocates for further upside.

Preference scenario:

Long positions above 27,200 with targets at 29,550 & 30,800 in extension.

Alternative scenario:

Below 27,200 look for further downside with 26,540 & 25,950 as targets.

Resistance 29,550 30,800 31,100
Support 27,200 26,540 25,950
Stimuli or No Stimuli – That Is the Question
USD/JPY

Last: 105.663

Pivot: 105.80

Review:

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.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

Short positions below 105.80 with targets at 105.50 & 105.35 in extension.

Alternative scenario:

Above 105.80 look for further upside with 105.95 & 106.10 as targets.

Resistance 105.80 105.95 106.10
Support 105.50 105.35 105.15
Stimuli or No Stimuli – That Is the Question
Gold

Last: 1,926.60

Pivot: 1,916

Review:

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.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 1916.00 with targets at 1933.00 & 1942.00 in extension.

Alternative scenario:

Below 1916.00 look for further downside with 1905.00 & 1896.00 as targets.

Resistance 1,933 1,942 1,954
Support 1,916 1,905 1,896
Stimuli or No Stimuli – That Is the Question
Oil

Last: 40.23

Pivot: 40.75

Review:

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.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

Short positions below 40.75 with targets at 39.90 & 39.55 in extension.

Alternative scenario:

Above 40.75 look for further upside with 41.40 & 41.70 as targets.

Resistance 40.75 41.40 41.70
Support 39.90 39.55 39.30
Stimuli or No Stimuli – That Is the Question
EUR/USD

Last: 1.1819

Pivot: 1.1795

Review:

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.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

Long positions above 1.1795 with targets at 1.1835 & 1.1855 in extension.

Alternative scenario:

Below 1.1795 look for further downside with 1.1780 & 1.1755 as targets.

Resistance 1.1835 1.1855 1.1870
Support 1.1795 1.1780 1.1755
Stimuli or No Stimuli – That Is the Question
GBP/USD

Last: 1.3031

Pivot: 1.2990

Review:

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.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.2990 with targets at 1.3050 & 1.3105 in extension.

Alternative scenario:

Below 1.2990 look for further downside with 1.2950 & 1.2920 as targets.

Resistance 1.3050 1.3105 1.3145
Support 1.2990 1.2950 1.2920
Stimuli or No Stimuli – That Is the Question

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of Trade360, a third party or otherwise.

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