Nasdaq 100 rally stalls while EUR/USD grinds higher and WTI drops
Technical analysis of the Nasdaq 100 as its recent rally stalls while EUR/USD grinds higher and WTI drops on OPEC outlook
Macro update
Dow sets new record as tech underperforms:
The Dow Jones closed at an all-time high while the Nasdaq 100 dipped, as investors rotated away from richly valued technology stocks.
Shutdown ends as Trump signs funding bill:
President Trump approved a stopgap spending measure that ends the record-long US government shutdown, with markets now looking to the resumption of key economic data releases.
Amazon and Tesla drag on Nasdaq:
Amazon and Tesla each fell around 2%, adding to pressure on AI-linked names after SoftBank’s sale of its Nvidia stake dented sentiment.
AMD jumps on bold data-centre ambitions:
Advanced Micro Devices (AMD) surged 9% after unveiling a $100 billion data-centre revenue target, helping offset some of the broader weakness in technology shares.
Global indices hover near records as yen softens:
The Topix, FTSE 100 and STOXX Europe 600 traded close to all-time highs, while the Japanese yen weakened after Japan’s leadership urged the Bank of Japan (BoJ) to be cautious in tightening policy.
Nasdaq 100 capped by resistance
The Nasdaq 100 underperformed its peers such as the Dow Jones Industrial Average which this week made a new record high and has been capped by the 25,655-to-25,663 minor resistance zone all of this week.
While this continues to be the case, the 10 and 20 October highs at 25,195-to-25,183 may be retested.
Were a rise above the 25,655-to-25,663 area to be seen, though, the 26,000 region would likely be back in play.
Nasdaq 100 daily candlestick chart
EUR/USD leaves downtrend channel
EUR/USD managed to break through the downtrend channel resistance line and close above it on Wednesday without for that matter seeing any follow through to the upside as yet.
For the advance to continue this week's high at $1.1606 needs to be exceeded. This would leave the way open for the September low and late October high at $1.1646-to-$1.1669 to be reached.
Potential slips may find support between the 9-to-14 October lows at $1.1542.
EUR/USD daily candlestick chart
WTI drops on OPEC outlook
WTI crude oil took a hit and swiftly slid towards the $58.00 region, adding to an over 4% slump from the previous session and taking it to a three-week low as OPEC pointed to a well-supplied outlook.
A drop below Thursday's $58.12 intraday low would likely lead to the 14 October low at $57.68 being eyed. Further down lies the October trough at $55.96 which may also be revisited as long as no bullish reversal takes the oil price above Tuesday's $61.28 high.
WTI daily candlestick chart
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