Daily Market Report: October 13, 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 13, 2020

Oil Traders Hold Their Breath As U.S Markets Continue To Climb

U.S. Stock Market

Last: 12,077

Pivot: 11,880

Review:

U.S. stocks closed on a high note Monday, as gains in the Technology, Consumer Services and Consumer Goods sectors drove shares higher, the Dow Jones rose by 0.88%, the S&P 500 by 1.64% and the NASDAQ added 2.56% to its value.

Technical comment:

The NASDAQ RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 11880.00 with targets at 12200.00 & 12315.00 in extension.

Alternative scenario:

Below 11880.00 look for further downside with 11720.00 & 11590.00 as targets.

Resistance 12,200 12,315 12,500
Support 11,880 11,720 11,590
Oil Traders Hold Their Breath As U.S Markets Continue To Climb
USD/JPY

Last: 105.34

Pivot: 105.45

Review:

USD/JPY has posted slight gains during Monday’s session. In North American trade, the pair is trading at 105.43, down 0.17% on the day.

Technical comment:

If the resistance at 105.45 is not surpassed, the risk of the break below 105.20 remains high.

Preference scenario:

Short positions below 105.45 with targets at 105.20 & 105.05 in extension.

Alternative scenario:

Above 105.45 look for further upside with 105.60 & 105.80 as targets.

Resistance 105.45 105.60 105.80
Support 105.20 105.05 104.90
Oil Traders Hold Their Breath As U.S Markets Continue To Climb
Gold

Last: 1,929.16

Pivot: 1,918

Review:

Gold futures climbed Monday to hold ground at their highest in roughly three weeks. Prices for the haven metal found support as uncertainty surrounding the outcome of the upcoming election prevailed, but gains in the U.S. stock market served to limit the price climb.

Technical comment:

A support base at 1918.00 has formed and has allowed for a temporary stabilisation.

Preference scenario:

Long positions above 1918.00 with targets at 1933.00 & 1940.00 in extension.

Alternative scenario:

Below 1918.00 look for further downside with 1911.00 & 1905.00 as targets.

Resistance 1,933 1,940 1,946
Support 1,918 1,911 1,905
Oil Traders Hold Their Breath As U.S Markets Continue To Climb
Oil

Last: 39.56

Pivot: 39.85

Review:

Major oil benchmarks dipped on Monday ahead of two major oil industry reports that are set to be released on Tuesday of this week. The IEA is set to publish its World Outlook 2020 on Tuesday, followed by OPEC’s Monthly Oil Market Report (MOMR). Both are much-anticipated industry reports that are set not only to shed light on oil production around the world.

Technical comment:

Technically the RSI is below its neutrality area at 50.

Preference scenario:

Short positions below 39.85 with targets at 39.05 & 38.60 in extension.

Alternative scenario:

Above 39.85 look for further upside with 40.35 & 40.65 as targets.

Resistance 39.85 40.35 40.65
Support 39.05 38.60 38.10
Oil Traders Hold Their Breath As U.S Markets Continue To Climb
EUR/USD

Last: 1.1813

Pivot: 1.1800

Review:

The EUR/USD pair spent the day hovering around the 1.1800 level, unable to attract investors. The market’s mood was mostly sour at the beginning of the day, amid resurgent coronavirus cases in Europe and new restrictive measures announced, and the absence of progress in a US coronavirus aid package.

Technical comment:

The RSI lacks downward momentum.

Preference scenario:

Long positions above 1.1800 with targets at 1.1830 & 1.1845 in extension.

Alternative scenario:

Below 1.1800 look for further downside with 1.1785 & 1.1770 as targets.

Resistance 1.1830 1.1845 1.1870
Support 1.1800 1.1785 1.1770
Oil Traders Hold Their Breath As U.S Markets Continue To Climb
GBP/USD

Last: 1.3065

Pivot: 1.3030

Review:

The GBP/USD pair surged to an over one-month high of 1.3082, holding nearby as the day comes to an end. News coming from the UK were far from optimistic, as the number of new coronavirus contagions in the UK has led to new restrictive measures.

Technical comment:

The RSI advocates for further upside.

Preference scenario:

Long positions above 1.3030 with targets at 1.3090 & 1.3115 in extension.

Alternative scenario:

Below 1.3030 look for further downside with 1.3000 & 1.2970 as targets.

Resistance 1.3090 1.3115 1.3150
Support 1.3030 1.3000 1.2970
Oil Traders Hold Their Breath As U.S Markets Continue To Climb

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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