Daily Market Report: October 14, 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 14, 2020

A bad day across most markets as Gold, Oil & Major Currencies take a downturn

U.S. Stock Market

Last: 3,515

Pivot: 3,500

Review:

U.S. stocks dropped lower after close Tuesday, as losses in the Financials, Oil & Gas and Basic Materials sectors led shares lower. The Dow Jones fell by 0.55%, the S&P 500 by 0.63 % and the NASDAQ lost 0.10 % from its value.

Technical comment:

The RSI calls for a new upleg.

Preference scenario:

Long positions above 3500.00 with targets at 3550.00 & 3571.00 in extension.

Alternative scenario:

Below 3500.00 look for further downside with 3475.00 & 3445.00 as targets.

Resistance 3,550 3,571 3,610
Support 3,500 3,475 3,445
A bad day across most markets as Gold, Oil & Major Currencies take a downturn
USD/JPY

Last: 105.46

Pivot: 105.35

Review:

The USD/JPY pair was able to post a modest intraday recovery, reaching a daily high of 105.62 to later settle in the 105.50 price zone. As usual when risk-off leads lately, the pair was trapped between the demand for the greenback and falling equities, these lasts limiting advances.

Technical comment:

Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

Long positions above 105.35 with targets at 105.65 & 105.80 in extension.

Alternative scenario:

Below 105.35 look for further downside with 105.20 & 105.05 as targets.

Resistance 105.65 105.80 105.95
Support 105.35 105.20 105.05
A bad day across most markets as Gold, Oil & Major Currencies take a downturn
Gold

Last: 1,890

Pivot: 1,902

Review:

Gold prices slumped as much as 2% on Tuesday, falling beneath key $1,900 support, as negotiations hit a snag again for an economic stimulus to help millions of Americans financially distressed by the coronavirus pandemic.

Technical comment:

The RSI shows downside momentum.

Preference scenario:

Short positions below 1902.00 with targets at 1881.00 & 1872.00 in extension.

Alternative scenario:

Above 1902.00 look for further upside with 1910.00 & 1918.00 as targets.

Resistance 1,902 1,910 1,918
Support 1,881 1,872 1,864
A bad day across most markets as Gold, Oil & Major Currencies take a downturn
Oil

Last: 40.16

Pivot: 39.85

Review:

Oil futures climbed on Tuesday, prompting U.S. prices to reclaim the $40 mark after settling a day earlier at their lowest in a week. Analysts said data showing a rise in Chinese crude oil imports in September provided support, even as crude production in the Gulf of Mexico continued to recover in the wake of Hurricane Delta.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 39.85 with targets at 40.50 & 40.85 in extension.

Alternative scenario:

Below 39.85 look for further downside with 39.45 & 39.05 as targets.

Resistance 40.50 40.85 41.30
Support 39.85 39.45 39.05
A bad day across most markets as Gold, Oil & Major Currencies take a downturn
EUR/USD

Last: 1.1741

Pivot: 1.1760

Review:

The euro’s reversal from the 1.1835 top reached last week has accelerated on Tuesday with the US dollar stronger across the board.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

Short positions below 1.1760 with targets at 1.1725 & 1.1705 in extension.

Alternative scenario:

Above 1.1760 look for further upside with 1.1780 & 1.1800 as targets.

Resistance 1.1760 1.1780 1.1800
Support 1.1725 1.1705 1.1685
A bad day across most markets as Gold, Oil & Major Currencies take a downturn
GBP/USD

Last: 1.2935

Pivot: 1.2985

Review:

The pound has gone through a sharp sell-off on Tuesday, losing nearly 1% on the day and giving away half of the ground taken last week. The broad-based dollar strength, fueled by a deteriorated market mood and the lack of progress on the Brexit talks have weighed on the GBP/USD on Tuesday.

Technical comment:

The RSI has broken down its 30 level.

Preference scenario:

Short positions below 1.2985 with targets at 1.2890 & 1.2865 in extension.

Alternative scenario:

Above 1.2985 look for further upside with 1.3015 & 1.3040 as targets.

Resistance 1.2985 1.3015 1.3040
Support 1.2890 1.2865 1.2845
A bad day across most markets as Gold, Oil & Major Currencies take a downturn

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