Nasdaq 100 and EUR/USD dip on US tariff threat while WTI rises
The Nasdaq 100 and EUR/USD dip on a 30% United States tariff threat on European Union and Mexican imports, while WTI crude oil rises.
Nasdaq 100 comes off record high
The Nasdaq 100 has come off last week's 22,915 all-time high, but the daily relative strength index (RSI) is displaying triple negative divergence. This increases the odds of at least a short-term retracement lower soon being seen.
The 7 July low at 22,588 may be retested and, if it gives way, the 1 July low at 22,388 may be reached as well. Were this level to be fallen through, a medium-term top may be formed with the 22,000 region being back in view.
A rise above last week's 22,915 record high would likely engage the 161.8% Fibonacci extension target at 22,930 and the 23,000 region.
Nasdaq 100 daily chart
EUR/USD nears uptrend line
According to recent analysis, EUR/USD slide off its 33/4 year high at $1.1830 is approaching its February-to-July uptrend line at $1.1636, which, together with the 12 June peak at $1.1632, is expected to offer support. If not, the April high at $1.1573 may be revisited as well.
While Thursday's high at $1.1749 caps, short-term downside pressure should remain in play.
EUR/USD daily chart
WTI continues to gradually advance
The WTI crude oil's tame recovery from its $64.03 per barrel 24 June low has on Friday for the first time taken it above the 200-day simple moving average (SMA) at $68.34, which should now act as minor support.
Were last week's high at $68.90 to be overcome on a daily chart closing basis, the late March high at $70.18 would be back in the frame.
Upside pressure is expected to be maintained while Thursday's low at $66.48 underpins. Further minor support can be spotted around the late June high at $66.39.
WTI crude oil daily chart
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