Market Daily Outlook – Stocks flirt with critical levels

Following our yesterday post, there were technical indications that traders should monitor carefully and take precautionary measures. Either indices were testing major resistances or they were consolidating within a tight range for consecutive days. Finally, FED revealed its intentions for the interest rates as they will potentially remain near zero for years. Additionally, they adjusted the projections for GDP, unemployment, and inflation. Though this news was enough to support the bullish bias, Nasdaq had a different “mood”. Tech stocks suffered significant losses carrying away the rest indices.
Other major news, Donald Trump is doubtful with TikTok-Oracle deal and expects to evaluate the agreement. The US Retail Sales rose by 0.6% but stayed lower than expected. Germany is planning to take a new debt of around 100bn within 2021 as part of its strategy to fight the coronavirus impact. European Central Bank started a new round offering a capital relief to its lenders in order to support them against COVID-19. EU CPI fell by 0.2% for the first time in 4 years as well as the EU Construction production dropped by 3.8%.    

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Heading to markets and their technical aspect, NAS100 holds a make or break level (23.6% Fibo) after validating the trendline as major resistance. Likewise, SPX500 has already tested the lower side of the channel. The traders should carefully monitor the rising wedge that GER30 is forming. Asia market followed the negative momentum and closed mostly in red. The EU stock indices are already losing steam while the US pre-market indicates selling pressure.  

NAS100 Daily
NAS100Daily 1792020

SPX500 Daily
SPX500Daily 1792020

GER30 Weekly
GER30Weekly 1792020

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The USOil regains the intraday losses and its ready to test the major resistance at 61.8% Fibonacci level. The EIA showed an unexpected drop in US crude inventories.

USoil 240min
USOilSpotH4 1792020

On the contrary, XAUUSD failed to break out the triangle and retraced at $1940 level (short-term support).  US Dollar is getting stronger therefore Gold is losing momentum.

XAUUSD 240min
XAUUSDH4 1792020

Disclaimer

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.