Nasdaq 100 steady while WTI holds and EUR/USD remains bullish
The Nasdaq 100 is surprisingly steady despite heightened tensions in the Middle East while WTI holds and EUR/USD remains bullish.
Nasdaq 100 comes off its June high
The Nasdaq 100 comes off its 4 1/2 month high at 22,041 amid escalating tensions in the Middle East.
As stated last week negative divergence on the daily Relative Strength Index (RSI) pointed to consolidation which we saw on Friday.
Support below Friday's 21,591 low can be found around the 5 June low at 21,473. Further down lies the 19 May low at 21,139.
Immediate resistance sits at Friday's 21,838 high and at last week's 22,041 peak.
EUR/USD remains bullish
EUR/USD's rally off its $1.1211 late May low and subsequent rise above its $1.1418 May peak to last week's high at $1.1632 has been followed by a minor sell-off to Friday's $1.1489 low. While it holds, a retest of the $1.1600 region and perhaps the August 2021 low at $1.1664 remains at hand.
Potential slips below Friday's $1.1489 low may find support between the 28 April high at $1.1425 and the 26 May high at $1.1419. Were this area to give way, the February-to-June uptrend line at $1.1367 may be revisited.
WTI trades below Friday's spike high
WTI is expected to remain below Friday’s $77.57 per barrel high but a rise above it would likely push the August 2024 to January 2025 highs at $80.13-to-$80.73 to the fore.
In case of more serious escalation in the Middle East and if a rise through the $80.13-to-$80.73 resistance area were to occur, the July 2024 peak at $84.49 may be reached as well. This would represent another 15% rise in the oil price from current elevated levels.
Immediate support is seen around the April peak at $72.22.
In case of de-escalation in the Middle East, the oil price is expected to give back some of its recent sharp gains and may slide back towards the 200-day simple moving average (SMA) at $68.47.
The price of WTI crude oil is unlikely to retest its major previous resistance area, now because of inverse polarity a support zone, at $65.25-to-$63.86, though. It consists of the early March low and the late April-to-May highs.
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