Nasdaq 100 momentum slows as EUR/USD range trades and WTI drops
Nasdaq 100 upside momentum slows ahead of US non-farm payroll as EUR/USD range trades and WTI drops amid likely OPEC+ output increases.
The Nikkei 225 climbed 1.6% as a smooth 30-year JGB auction and strong tech sector gains lifted sentiment after recent weakness.
In contrast, Chinese equities tumbled, with the CSI 300 falling more than 2.5% and the STAR 50 sliding over 5% on fears of fresh regulatory crackdowns.
In the US, job openings dropped to a 10-month low, reinforcing expectations that the Federal Reserve (Fed) will cut rates at its September meeting.
Wall Street was buoyed by tech stocks, with Alphabet and Apple rallying after a favourable court ruling, pushing the Nasdaq 100 up 0.8% and the S&P 500 up 0.5%, though the Dow Jones slipped 0.1%.
Nasdaq 100's bounce slows down
The Nasdaq 100's swift recovery from its early September low is starting to lose upside momentum and may peter out around between the late July and 22 August highs at 23,575 and 23,589.
If this resistance area were to be bettered, though, last week's high at 23,741 would be back in the frame.
Slips may find minor support around the 21 July 23,264 high and only a fall and daily chart close below the August and current September lows at 23,242-to-22,959 would have negative implications and would put the August trough at 22,674 on the cards.
Nasdaq 100 daily candlestick chart
EUR/USD continues to range trade
EUR/USD remains between its mid-August two-week high at $1.1742 high and its late August $1.1574 low.
Further sideways trading around the 55-day simple moving average (SMA) at $1.1663 remains at hand.
Minor support can be spotted at the $1.1608 early September low and more significant resistance between the mid-to-late August highs at $$1.1730-to-$1.1743.
EUR/USD daily candlestick chart
WTI comes off one-month high
WTI crude oil rejection at the end of August $66.03 high is taking it towards the 27 August low at $62.95. If this minor support level were to give way, the May-to-September support line at $62.57 may be reached next and perhaps the mid-August low at $61.94 too.
While the price of light crude oil remains below its 25 August high at $65.10, downside pressure is expected to retain the upper hand.
WTI daily candlestick chart
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.