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. 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.
The RSI calls for a new upleg.
Long positions above 3500.00 with targets at 3550.00 & 3571.00 in extension.
Below 3500.00 look for further downside with 3475.00 & 3445.00 as targets.
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.
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Long positions above 105.35 with targets at 105.65 & 105.80 in extension.
Below 105.35 look for further downside with 105.20 & 105.05 as targets.
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.
The RSI shows downside momentum.
Short positions below 1902.00 with targets at 1881.00 & 1872.00 in extension.
Above 1902.00 look for further upside with 1910.00 & 1918.00 as targets.
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.
The RSI is mixed with a bullish bias.
Long positions above 39.85 with targets at 40.50 & 40.85 in extension.
Below 39.85 look for further downside with 39.45 & 39.05 as targets.
The euro’s reversal from the 1.1835 top reached last week has accelerated on Tuesday with the US dollar stronger across the board.
The RSI advocates for further decline.
Short positions below 1.1760 with targets at 1.1725 & 1.1705 in extension.
Above 1.1760 look for further upside with 1.1780 & 1.1800 as targets.
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.
The RSI has broken down its 30 level.
Short positions below 1.2985 with targets at 1.2890 & 1.2865 in extension.
Above 1.2985 look for further upside with 1.3015 & 1.3040 as targets.
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