Nasdaq 100 bid while EUR/USD, WTI capped by resistance
Technical analysis of the Nasdaq 100 as it remains bid while EUR/USD, WTI are capped by resistance.
Macro update
Japan bond auction steadies global rates:
A strong sale of 10-year JGBs helped ease pressure across global government bond markets after recent hawkish signals from the Bank of Japan (BoJ) pushed yields to their highest level in 17 years.
BOJ tightening concerns persist:
Governor Ueda’s indication that a December rate hike is on the table has stoked worries that Japanese investors may retain more capital domestically, potentially reducing demand for overseas debt.
Crypto rout hits related stocks:
Bitcoin steadied around $87,000.00 in Asian trading after a steep decline, but the broader crypto market has lost nearly $1.4 trillion since its October peak
US equities weaken as yields rise:
Wall Street closed lower as Treasury yields climbed and ISM data pointed to a deeper manufacturing contraction, with crypto-linked stocks among the worst performers.
Eurozone inflation in focus:
Flash consumer price index (CPI) is expected to show persistent price pressures, though with markets assuming the European Central Bank (ECB) will remain on hold through 2026, the data may have limited impact on rate expectations.
Nasdaq 100 remains bid
The Nasdaq 100 remains bid on Fed rate cut hopes and would eye the 25,650 region on a rise above Monday's 25,443 high.
Minor support is seen along the 55-day simple moving average (SMA) at 24,971.
Further support may be found between the 22 October to 7 November lows at 24,652-to-24,604.
Nasdaq 100 daily candlestick chart
EUR/USD capped by resistance
EUR/USD briefly hit a two-week high on Monday but has been rejected by the mid-November peak at $1.1656. Together with the late October high at $1.1668 it offers solid resistance.
While EUR/USD remains above its late November low at $1.1556, though, short-term upside pressure is expected to prevail.
For the bulls to be back in control, a rise and daily chart close above the $1.1656 high and the late October high at $1.1668 needs to be seen with the mid-October high at $1.1728 being eyed in this scenario.
EUR/USD daily candlestick chart
WTI encounters resistance
WTI crude oil continues to range trade but is so far being capped by the $60.00 region.
A rise and daily chart close above the early December $59.97 high may put the 55-day simple moving average (SMA) AT $60.54 and the mid-November high at $60.85 on the cards.
As long as $59.97 caps, though, the gradual medium-term downtrend may resume.
Minor support sits at the mid-November $58.12 low.
From a longer-term perspective a bullish reversal and rally above the $61.50 early November high is needed for the late October peak at $62.59 to be back in play. Only a rise and daily chart close above this level and the 8 October high at $62.92 would put the bulls back in control.
WTI daily candlestick chart
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