Market Daily Outlook – Markets rebound strongly

US indices record a 3-day rebound rally while the greenback is getting weaker against its major rivals even though it has its best week since early April. GER30 is leading the EU market with gains while the Asian market closed mostly in green. 

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On major US news, Trump and Biden will have a debate on Tuesday for a 90-minute session at Case Western Reserve in Cleveland, Ohio. US has imposed restrictions on exports to SMIC, China’s biggest chip manufacturer. The commerce department claims there is “unacceptable risk” that equipment sold to SMIC may be diverted to “military end use.” Cleveland-Cliffs Inc reported that came in agreement with ArcelorMittal S.A to acquire all of the operations of ArcelorMittal USA LLC and its subsidiaries (“ArcelorMittal USA”) for approximately $1.4 billion. Trump’s paid taxes got rival as The New York Times revealed on Sunday that he paid just $750 for 2016 and 2017 during his campaign for the US presidency.

On major EU-UK news, Ignazio Visco said on Sunday that that EURO’s rising strength is a major concern for ECB and they may act if this move affects negatively its inflation goal. Silvana Tenreyro, BoE’s policymaker, believes that discussing negative interest rates is encouraging for UK’s economy. 

On global news,  Armenia and Azerbaijan are one step away from a large scale war due to their conflict over Nagorno-Karabakh. Russia, US, and EU are calling for a ceasefire however both countries have announced mobilization in their regions.  

Reviewing the technical view, SPX500 is moving above 20EMA while 50EMA is a little bit higher and acts as a major resistance. On the other hand, NAS100 is already testing 50EMA and is trying to negate the bearish bias. Similar behavior for GER30, as the index rebounds and heads towards major MAs. 

SPX500 Daily
SPX500Daily 2892020

NAS100 Daily
NAS100Daily 2892020

GER30 Daily
GER30Daily 292020

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XAUUSD reached and bounce at the 161.8% Fibonacci extension level. However, the commodity is still under selling pressure. 

XAUUSD 240min
XAUUSDH4 2892020

USOil is trying to perform an upside triangle breakout. If the move is valid, then it will set the stage for the next upside extension.

USOil 240m
USOilSpotH4 2892020


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