Nasdaq 100 comes off record high, EUR/USD nears key support as WTI continues to bounce back
The Nasdaq 100 comes off its 25,062 record high on profit taking as EUR/USD trades in one-month lows and nears key technical support and WTI continues to recover.
Macro update
US equities pull back:
The S&P 500 slipped 0.4%, the Nasdaq dropped 0.7%, and the Dow edged down 0.2% as investors took profits following a seven-day rally, amid rising economic uncertainty.
Data blackout heightens caution:
With the US government shutdown stretching into its seventh day, traders turned to private surveys indicating weaker consumer sentiment and higher inflation expectations.
Fed adopts a dovish tone:
Federal Reserve (Fed) Governor Stephen Miran reiterated support for further rate cuts, cautioning that monetary policy may remain too restrictive as growth momentum slows.
Gold hits record, Asia softens:
Gold surged above $4,000 an ounce to an all-time high as political tensions in France and Japan spurred safe-haven demand. Asian equities and the euro weakened amid the risk-off sentiment.
Nasdaq 100 comes off record high
The Nasdaq 100 has come off its latest 25,062 record high and tested its September peak at 24,781 which acted as support.
The September-to-October uptrend line, which can be seen at a similar level, may soon be slipped through, as well as the 3 October low at 24,714 since the latest record high has been accompanied by negative divergence on the daily Relative Strength Index (RSI). If so, a break out of a wedge formation may swiftly take the Nasdaq 100 lower, toward the late September low at 24,187 at the very least.
Were the index to remain above its uptrend line, though, and rise above this week's all-time high at 26,062, the 25,100 region would be next in line.
Nasdaq 100 daily candlestick chart
EUR/USD drops further
EUR/USD is trading in one-month lows and testing its early September trough at $1.1608. If slipped through, the late August low at $1.1574 would be next in line and perhaps below it the 5 August low at $1.1528 as well.
While remaining above the late August low at $1.1574, a recovery move may ensue with the late September low at $1.1646 acting as resistance below the 55-day simple moving average (SMA) at $1.1685.
EUR/USD daily candlestick chart
WTI bounces off minor support
WTI crude oil has managed to heave itself above its $61.45-to-$61.94 resistance zone, made up of the mid-August-to-October lows, by recovering from Tuesday's intra-day low at $60.72. because of inverse polarity, the $61.94-to-$61.45 area is now expected to act as support.
Over the next few days a counter-trend upward move may take the oil price toward its late August low at $62.95 while Tuesday's low at $60.72 underpins.
Were it to give way, the mid-April-to-late May support area and current October low at $60.40-to-$59.84 may be revisited.
WTI daily candlestick chart
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