Daily Market Report: October 16, 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 16, 2020

Covid-19 Relief & Brexit concerns lead to bad days for all except Gold

U.S. Stock Market

Last: 11,878.64

Pivot: 11,180

Review:

U.S. stock market went down since Thursday, as losses in the Healthcare, Technology and Telecoms sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.07%, while the S&P 500 index declined 0.15%, and the NASDAQ Composite index declined 0.47%.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 11180.00 with targets at 12440.00 & 13100.00 in extension.

Alternative scenario:

Below 11180.00 look for further downside with 10680.00 & 10300.00 as targets.

Resistance 12,440 13,100 13,320
Support 11,180 10,680 10,300
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold
USD/JPY

Last: 105.42

Pivot: 106.90

Review:

USD/JPY was up 0.1% at 105.28.

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
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold
Gold

Last: 1,900.87

Pivot: 1,935

Review:

Gold settled in the green zone for a second straight day on Thursday, staying above the key $1,900 an ounce level despite a din of confusion over what the Trump administration wants for a new Covid-19 relief deal.

Technical comment:

A break below 1875.00 would trigger a drop towards 1845.00.

Preference scenario:

Short positions below 1935.00 with targets at 1875.00 & 1845.00 in extension.

Alternative scenario:

Above 1935.00 look for further upside with 1980.00 & 2015.00 as targets.

Resistance 1,935 1,980 2,035
Support 1,875 1,845 1,815
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold
Oil

Last: 40.97

Pivot: 41.70

Review:

Oil stockpiles fell more than expected last week, according to the Energy Information Administration. Crude oil inventories declined 3.8 million barrels. Analysts tracked by Investing.com had expected a decline of 2.8 million barrels after an increase of 500,000 the prior week. Hurricane Delta forced production shutdowns along the Gulf Coast last week. Crude Oil WTI Futures, the U.S. oil benchmark, fell about 3% in early trading on Thursday.

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
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold
EUR/USD

Last: 1.1730

Pivot: 1.1850

Review:

EUR/USD was down 0.1% at 1.1740.

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 1.1610 1.1500 1.1420
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold
GBP/USD

Last: 1.2929

Pivot: 1.3080

Review:

GBP/USD fell 0.82% to $1.2904. The pound went down sharply against the dollar on Thursday, after EU leaders did not commit to work "intensively" with the UK to reach a trade deal and placed the onus on Britain to "make the necessary moves" to secure an agreement.

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
Covid-19 Relief & Brexit concerns lead to bad days for all except Gold

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