Daily market analysis

Sep 14,2020

September 14, 2020
   

Daily Market Analysis

Market Focus

U.S. shares continued to swing wildly after a five-month rally came to halt last week, putting the Nasdaq 100 on track for its worst week since March. The tech-heavy index traveled 3% from high to low Friday and was headed for the fifth loss in six days. It’s down 11% from its Sept.2 record. The rout comes after a torrid August capped a 59% rally from late March. Apple has plunged 16% from its 10-day old high, but remains only at the lowest in a month.

 

The S&P 500 was little changed, with three stocks higher for every one that fell. The Dow Jones industrial average advanced on rallied in Nike, Dow and Catepillar. Tech, the scene of fervent bullish options activity, gave up early gains for a second day, as investors assessed whether the pullback had run its course.

 

Global shares remain on track for the first back-to-back weekly declines since March after a rally that added $7 trillion to U.S. equity values. The pandemic is continuing to upend the global economy, with U.S. data showing cracks in recent labor-market strength and virus cases continuing to climb globally.

 

Market Wrap

Main Pairs Movement

Greenback pared a decline in quiet trade Friday afternoon while the pound was broadly lower as the European Union and the Kingdom remain in disagreement on important areas of Brexit treaty.

Euro dollar gain for a third day though is on pace to end the week little changed while spot trade positive 0.2% around to 1.184 that against to the day’s high of 1.1874. the euro gain despite a warning from European Central Bank chief economist Lane that its appreciation has dampened the inflation outlook.

Loonie rebound has started to waver as the prospect of a slowdown in the economic recovery and the risk of a second wave of Covid-19 has hurt the loonie of late. Oil’s weakness is also a factor in the currency’s 1.1% drop against the greenback this month. Other than this, loonie is among the best-performing G-10 currencies this year.

 

COVID-19 Data (EOD):

 

Technical Analysis:

EURUSD(H4)

euro dollar set around in the middle of the consolidation range between 1.18 to 1.1858 post ECB and in anticipation of the FOMC. The price will probably stay in this zone until the next Fed meeting on 16th September. According to RSI index, its near the neutral at 54 side that suggesting low fluctuation untill Fed meeting. 60-MA is slighlty down and 15-MA started turned up.

Resistance: 1.1858, 1.1895

Support: 1.18, 1.1768

 

GBPUSD(H4)

After sterling slumped to 3-month low, it little changed at 1.2797 on the market close. According to option market, risk reversals figures may have reached a short-term peak as the steeply drop to -2.5 of pound-dollar six-month risk reversals. For RSI index aspect, it kick-off to shrink in continuous over sought area to 27 around. Meanwhile, 60 and 15-MA remain upwind without reverse signal.

Resistance: 1.285, 1.2905

Support: 1.277, 1.27

 

XAUUSD(H4)

Gold remain choppy in slightly range that between 1918 to 1948.7 as first resistance and support. For RSI index perspective, figure shows it steady around neutral area at 50 and suggesting flat market ahead. Meanwhile, long-short MA mixed as 60-MA still remain little change in month. Other aspect, downtrend yellow line gave pressure to market status and seems convergence to market.

Resistance: 1948.7, 1968.19

Support: 1918.33, 1905.62

 

Economic Data