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Nasdaq 100, WTI rally while EUR/USD slips amid hopes of US-China trade deal
Nasdaq 100, WTI rally while EUR/USD slips amid hopes of US-China trade deal as both countries say they have had “constructive” talks.
Nasdaq 100 expected to gap higher
The Nasdaq 100 is expected to gap higher from Friday's 20,203 high and to rally to above its 20,292 late March high towards the January low at 20,538.
Support is made up of the 20,292 late March high and further down, Thursday's 20,249 high, ahead of the 200-day simple moving average (SMA) at 20,182 and Friday's 20,203 high.
EUR/USD remains under pressure
EUR/USD continues to slowly descend as the greenback appreciates on hopes of a US-China trade deal being made.
Having last week slipped through its March-to-May uptrend line, now because of inverse polarity a resistance line at $1.1304, EUR/USD remains short-term under pressure.
The area around the August-to-September 2024 highs at $1.1214-to-$1.1201 may offer support, though. If not, the 3 April high at $1.1147 should do so.
Minor resistance below the breached uptrend line can be seen at the 15 April-to-1 May lows at $1.1264-to-$1.1266.
WTI on track for third straight day of gains
The WTI crude oil price's recovery from last week's $55.39 per barrel low, made close to the 4-year April $55.15 low, has taken it through its April-to-May resistance line which is short-term bullish price behaviour.
WTI is on track for its third consecutive day of gains with the 14 April high at $62.64 representing its next upside target amid heightened tension between India and Pakistan and possible supply concerns.
More resistance can be found between the 10 and 28 April highs at $63.30-to-$63.66 ahead of the key $64.82-to-$65.32 resistance area. It consists of the 55-day SMA, September 2024 and March 2025 lows as well as the 23 April high. As such it is expected to withstand its first test at the very least.
Potential slips may find support between the mid-April low and the 2 May high at $59.90-to-$59.83.
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