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 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%.
The RSI is bullish and calls for further advance.
Long positions above 11180.00 with targets at 12440.00 & 13100.00 in extension.
Below 11180.00 look for further downside with 10680.00 & 10300.00 as targets.
USD/JPY was up 0.1% at 105.28.
As long as the resistance at 106.90 is not surpassed, the risk of the break below 104.85 remains high.
Short positions below 106.90 with targets at 104.85 & 104.00 in extension.
Above 106.90 look for further upside with 108.15 & 109.65 as targets.
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.
A break below 1875.00 would trigger a drop towards 1845.00.
Short positions below 1935.00 with targets at 1875.00 & 1845.00 in extension.
Above 1935.00 look for further upside with 1980.00 & 2015.00 as targets.
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.
As long as 41.70 is resistance, expect a return to 36.60.
Short positions below 41.70 with targets at 36.60 & 35.40 in extension.
Above 41.70 look for further upside with 44.00 & 46.90 as targets.
EUR/USD was down 0.1% at 1.1740.
The RSI is mixed to bearish.
Short positions below 1.1850 with targets at 1.1610 & 1.1500 in extension.
Above 1.1850 look for further upside with 1.2015 & 1.2150 as targets.
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.
The RSI is mixed to bearish.
Short positions below 1.3080 with targets at 1.2675 & 1.2500 in extension.
Above 1.3080 look for further upside with 1.3250 & 1.3480 as targets.
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