Market Daily Outlook – Buying opportunity or…

…or a potentially bearish signal?

Yesterday, the market was really tough, especially with the bullish Investors. All US indices lost 7-days profits as the selling pressure was hard and intense. Amazon fell by 4.6%, Apple slid 8%, Zoom plunged 9.97% and NVIDIA by -9.28%. Probably, this was a profit-taking action as indices were highly overbought and reached extreme levels. Reading the charts, they bounced at their major supports. All three held the 20 EMA while SPX500 and NAS100 respected the lower side of the channels. 

US30 daily
US30Daily 492020

SPX500 daily
SPX500Daily 492020

NAS100 daily  
NAS100Daily 492020

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EU market “copied” the negative bias and recorded losses though today, they all reversing to the upside. The data is mixed, as French Construction PMI contracts from 49.4 to 46 as well as EU Construction PMI fell to 47.8. The German PMI increased slightly to 48 but the Factory Orders decreased by 8.2%. 

Asia market closed in red as JPN225 lost -1.11%, Shanghai -0.87%, and Kospi -1.15%. China announced that they injected a CNY 100bn in a 7-day reverse repos auction today as they like to provide liquidity in the market. In the meanwhile, South Korea improved its USD surplus to 7.45bn in July.

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Heading to the forex market, EURUSD has stalled below the 50 SMA after bouncing at the lower side of the channel. The pair needs to hold this area otherwise the selling pressure may be accelerated. GBPUSD stopped below the 38.2% Fibonacci level. USDCHF is trying to validate the bullish breakout from the falling trendline. As long as it remains above the current zone, there are major probabilities to continue higher.

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EURUSDH4 492020

GBPUSDH4 492020

USDCHF  240m
USDCHFH4 492020

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on EURUSD, USDCHF, and GBPJPY.


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.