Daily Market Report: October 15, 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 15, 2020

Oil, Gold Climb for different reasons, cable awaits Johnson decision

US Stock Market

Last: 3,495.50

Pivot: 3,390

Review:

U.S. stocks were lower after the close on Wednesday, as losses in the Telecoms, Consumer Services and Financials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.58%, while the S&P 500 index fell 0.66%, and the NASDAQ Composite index lost 0.80%.

Technical comment:

The S&P 500 RSI calls for a new upleg.

Preference scenario:

Long positions above 3390.00 with targets at 3588.00 & 3745.00 in extension.

Alternative scenario:

Below 3390.00 look for further downside with 3305.00 & 3210.00 as targets.

Resistance 3,588 3,745 3,900
Support 3,390 3,305 3,210
Oil, Gold Climb for different reasons, cable awaits Johnson decision
USD/JPY

Last: 105.42

Pivot: 106.90

Review:

USD/JPY was up 0.1% at 105.50.

Technical comment:

As long as the resistance at 106.90 is not surpassed, the risk of the break below 104.85 remains high.

Preference scenario:

Short positions below 106.90 with targets at 104.85 & 104.00 in extension.

Alternative scenario:

Above 106.90 look for further upside with 108.15 & 109.65 as targets.

Resistance 106.90 108.15 109.65
Support 104.85 104 102.40
Oil, Gold Climb for different reasons, cable awaits Johnson decision
Gold

Last: 1,892

Pivot: 1,935

Review:

Gold was up on Wednesday morning in Asia, as hopes that the latest U.S. stimulus measures would be passed by Congress before the Nov. 3 presidential election, and a COVID-19 treatment would be launched quickly, were dashed.

Technical comment:

The RSI has just struck against its neutrality area at 50% and is reversing down.

Preference scenario:

Short positions below 1935.00 with targets at 1848.00 & 1815.00 in extension.

Alternative scenario:

Above 1935.00 look for further upside with 1980.00 & 2035.00 as targets.

Resistance 1,935 1,980 2,035
Support 1,848 1,815 1,770
Oil, Gold Climb for different reasons, cable awaits Johnson decision
Oil

Last: 40.07

Pivot: 41.70

Review:

Oil prices rebounded on Wednesday ahead of the U.S. government’s weekly report on stockpiles that could show large drawdowns due to data distortion caused by Hurricane Delta.

Technical comment:

As long as 41.70 is resistance, expect a return to 36.60.

Preference scenario:

Short positions below 41.70 with targets at 36.60 & 35.40 in extension.

Alternative scenario:

Above 41.70 look for further upside with 44.00 & 46.90 as targets.

Resistance 41.70 44 46.90
Support 36.60 35.40 33.50
Oil, Gold Climb for different reasons, cable awaits Johnson decision
EUR/USD

Last: 1.1730

Pivot: 1.1850

Review:

EUR/USD was down 0.1% at 1.1744.

Technical comment:

The RSI is mixed to bearish.

Preference scenario:

Short positions below 1.1850 with targets at 1.1610 & 1.1500 in extension.

Alternative scenario:

Above 1.1850 look for further upside with 1.2015 & 1.2150 as targets.

Resistance 1.1850 1.2015 1.2150
Support 0.1610 1.1500 1.1420
Oil, Gold Climb for different reasons, cable awaits Johnson decision
GBP/USD

Last: 1.2929

Pivot: 1.3080

Review:

GBP/USD rose 0.72% to $1.303. UK Prime Minister Boris Johnson is reportedly set to decide on Friday whether to walk away or continue talks with the EU, according to UK media reports. The prime minister will continue negotiations with European Commission president Ursula von der Leyen later on Wednesday.

Technical comment:

The RSI is mixed to bearish.

Preference scenario:

Short positions below 1.3080 with targets at 1.2675 & 1.2500 in extension.

Alternative scenario:

Above 1.3080 look for further upside with 1.3250 & 1.3480 as targets.

Resistance 1.3080 1.3250 1.3480
Support 1.2675 1.2500 1.2250
Oil, Gold Climb for different reasons, cable awaits Johnson decision

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