Daily market analysis

Oct 02,2020

October 2, 2020

Daily Market Analysis

Market Focus

U.S. stocks advanced, led by gains in the biggest technology companies, as investors weighed the chances Democratic lawmakers and the White House will reach a deal for a fiscal-stimulus package.

The Nasdaq 100 reached the highest in almost a month as Amazon.com, Microsoft and Tesla rose. The S&P 500 Index’s advance was limited by declines in energy producers. Trading was volatile, with stocks pushed around by the latest developments in efforts to forge a stimulus bill acceptable to Democrats and Republicans. Talks were set to continue Thursday as officials sought a breakthrough. However, market eked out earlier session gain after Pelosi rips White House offer that cooling stimulus hopes.

European stocks closed slightly higher. Gold advanced, while Treasury yields dipped. Oil tumbled to about $39 a barrel on concern about oversupply amid sluggish economic growth.

U.S. stock markets have been whipsawed this week by speculation over whether lawmakers will agree to provide new pandemic-relief aid amid high unemployment and growing rates of infection in some areas. While the S&P 500 Index is up more than 50% from its March low, it’s still down more than 5% from a record high reached last month. Oil tumbled on concern the market may be oversupplied.

 

Market Wrap

 

Main Pairs Movement

Sterling was left weaker after a bout of volatility unleashed by conflicting indications about Brexit trade talks between U.K. and European Union. Greenback weakened for 4 consecutive days as haven demand ebbed, even as the White House and Congress remained at loggerheads over a fiscal stimulus package.

Meanwhile, greenback idled near session lows after U.S. initial jobless claims declined more than forecast, evidence of labor market improvement. Among G-10 currencies, kiwi dollar and Swedish krona led gains against the dollar then sterling fell the most.

 

COVID-19 Data (EOD):

 

Technical Analysis:

XAUUSD (H4)

As previously mention, gold has positive correlation as gold significantly soared up torrid as much as 1.07% to 1909.6 and share market edged up at the same time while writing. However, it closed to the strength resistance in 1909 around and once stopped in earlier session. For RSI aspect, it still locates in 61 around, suggesting a modest boost would be extended further.

Additionally, DXY index faltering around 93.72 currently in nearly 2 days while shares market hovered 2 consecutive days. Meanwhile, cooling stimulus hopes have given uncertainty to shares market further then we have to eyes on the aforementioned critical resistance and support whether be break through or not.

 

Resistance: 1909.64, 1918.22

Support: 1895.5, 1883, 1873.2

 

EURUSD(H4)

The euro edged up as much as 0.1% to 1.1747 as of writing. According to DTCC data, cross appears constrained by a series of large option expiries near 1.175 and 1.18. In the meantime, euro dollar benefited from leveraged buying in EUR/GBP which gained as much as .9% to 0.9156 as well.

For RSI index aspect, it is faltering around 60 thresholds, suggesting a prospective bullish trend in near term. On the other hands, 15-MA has cross over the 60-MA notwithstanding long-term indicator considerable weakness as downward.

 

Resistance: 1.176, 1.1794

Support: 1.1712, 1.1685

 

AUDUSD (H4)

Aussie has stayed a bit shy of 0.721 which highest in eight days, flashed the previous day and it rose for the fourth consecutive day on Thursday then held 0.7182 around the market close. Meantime, a mild optimism concerning the U.S. aid package talks, coupled with a pause in the surging COVID-19 numbers from Europe, seem to have favored the Aussie buyers off-late. Other than this, Australian is heading of Retail Sales data on Friday that offer a critical sentiment as economy improvement evidence.

For RSI perspective, it creepy up to 64.5, suggesting a bullish position n further. On the other hands, 15-MA has golden cross 60-MA, but long-term MA remained upwind. As RSI index spiral at culmination and MA indicator show mix information, we believed it would consolidate at range 0.7161 to 0.7209 while strength resistance is ahead of.

 

Resistance: 0.7197, 0.7209

Support: 0.7161, 0.7141, 0.7109

 

conomic Data