Nasdaq remains above key support as EUR/USD recovers and WTI tries to stem fall
Nasdaq 100 holds above key support as Powell says that the US economy appears to be on firmer ground while EUR/USD recovers and WTI tries to stem its recent fall to a five-month low.
Macro update
Wall Street finishes mixed:
The Dow Jones advanced 0.4%, while the S&P 500 dipped 0.2% and the Nasdaq 100 lost 0.8%, as upbeat bank earnings helped offset renewed US-China trade tensions.
Banks lead on earnings beats:
Wells Fargo jumped 7% and Citigroup rose 4% after posting stronger-than-expected profits. JPMorgan and Goldman Sachs also reported solid results but slipped modestly.
Powell strikes a measured tone:
Federal Reserve (Fed) Chair Jerome Powell said the US economy appears to be on firmer ground despite sluggish hiring, reinforcing expectations of additional rate cuts.
Trade concerns persist:
President Trump reignited trade worries, suggesting the US could sever certain ties with China as both nations introduced new port fees, rattling markets.
Global markets rebound:
Japan’s Nikkei 225 rose 1% on tech-sector strength, while European futures pointed higher after Powell’s remarks helped steady investor sentiment.
Nasdaq 100 bounces off support zone
The Nasdaq 100 has not only managed to hold above its 25 September and last Friday's lows at 24,207-to-24,187 but recovered from Tuesday's 24,257 low and nearly managed to reach Monday's 24,779 high. If it and the 22 September high at 24,781 were to be overcome, an advance towards the current October record high at 25,195 would once more be on the cards.
Were support at 24,257-to-24,187 to give way, though, the August high and mid-September low at 24,000-to-23,970 would be expected to be reached instead.
Nasdaq 100 daily candlestick chart
EUR/USD bounces off support
EUR/USD is seen bouncing off its two-month lows at $1.1542 with the 25 September low at $1.1646 being in focus.
Further up meanders the 55-day simple moving average (SMA) at $1.1689 which may also be reached over the coming days, provided that support at $1.1542 continues to hold.
Failure at $1.1542 would put the 5 August low at $1.1528 on the map.
EUR/USD daily candlestick chart
WTI tries to stabilise
Having dropped by over 5% in the past week, WTI crude oil is trying to hold above its five-month low at $57.68 per barrel.
If successful, the mid-to-late May lows at $59.84-to-$60.11 may be revisited. This resistance area would need to be breached for the next higher and more significant $61.45-to-$61.69 mid-August-to-mid-September lows and resistance area to be reached.
A fall through Tuesday's $57.68 low would likely engage the April-to-May lows at $55.39-to-$55.15.
WTI daily candlestick chart
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