ZuluTrade Blog
Image

Market View

Market Daily Outlook - Indices are falling hard and US Dollar rebounds

Monday, September 21, 2020 1:15 PM GMT

The selling bias prevails this month and there are almost 2 weeks left. All EU and US indices are forming bearish monthly candles as well as violating major daily resistances aggressively. On the other hand, the greenback reverses higher against its major counterparts. Coronavirus fears for further restrictions, cause headaches to all market participants. 

CopyTrade with ZuluTrade

On major US news, the US Department of Commerce is going to announce its investigation findings regarding the potential Chinese yuan under-evaluation next week. Also, U.S. Magistrate Judge Laurel Beeler halted the Trump administration order to remove WeChat from the app stores (Apple-Google). On the contrary, Oracle-TikTok has been approved by Trump while Tesla’s Battery day is going to be the major event for tomorrow. 

On major EU-UK news, Boris Jonhson will talk about the scenario of a second lockdown amid coronavirus infections increase. London looks to be in the epicenter of the restrictions expansion. Additionally, the progress in Brexit doesn’t allow traders to be very optimistic as the negotiations have stopped again. Deutsche Bank said on Monday that the global economic recovery was stronger than expected. They projected that GDP will return back to normal levels by mid-2021.

On Asia news, HCBC fell to the lowest level since 1995 leading the Hang Seng Index around 1% lower. Ms. Tsai Ing-wen.Taiwan's President said on Monday that the drills near Taiwan Strait make Beijing a threat to the region.

Reviewing the technical view, NAS100 verified the bearish continuation by losing the 23.6% Fibonacci level. Bearish MAs crossovers indicate that the midterm trend is turning downwards. The index may forms an ABCD formation. GER30 is violating the rising wedge to the downside. UK100 is heading to the lower side of the falling channel.

NAS100 Daily

GER30 Daily

UK100 Daily

CopyTrade with ZuluTrade

Even though there is selling pressure on indices, XAUUSD is currently dropping aggressively. Its already testing the lower side of the triangle while RSI is almost oversold.

XAUUSD 240min

USOil is currently ranging below 200 SMA and still holding the 50% Fibonacci level. Libya’s National Oil Corp has lifted the force majeure on oil fields and port starting from the 19th of September. This action will add 100k barrels per day in the market.

USOil 240m


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.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.