Daily Technical Analysis - 9th Sept. 2020
The dollar gained in the early trade session today, with the sharp falloff in U.S. equity markets. The Dollar Index inched up 0.1% at 93.562. EUR/USD dipped 0.1% to 1.1768, GBP/USD slipped 0.4% to $1.2939, while EUR/GBP gained 0.3% to 0.9093. The safe-haven yen rose to 105.83, on a one-week-high. The AUD/USD pair climbed 0.22% to 0.7177 and the NZD/USD pair edged up 0.12% to 0.6533. The USD/CNY pair edged down 0.13% to 6.9092.
On the data front, the policy meeting of the Bank of Canada is scheduled to release later today and the meeting of the U.S. Federal Reserve’s is scheduled for next week. Investors are eagerly waiting for the European Central Bank policy meeting due on Thursday. While no major policy changes are expected as the board has previously acted aggressively to support the virus-affected economy, investors will also be watchful for its inflation forecasts scheduled to release tomorrow.
European markets were trading on the negative territory in the early trading session today. The pan-European STOXX 600 climbed 0.8%, with travel and leisure stocks inched down 1.9% as coronavirus containment measures applied repeatedly in the Europe, while telecom sector jumped 2.1%. London’s FTSE rose 61 points to 5994, Germany’s DAX inched up 110 points to 13,084, France’s CAC 40 advanced 36 points to 5,009 and Italy’s FTSE MIB rose 143 points to 20,213. Euro STOXX 50 futures were up 0.86%, at the time of writing.
Overnight on Wall Street, the sell-off in blue-chip tech stocks continued following extensive losses till the end of the trading session on Tuesday. The Nasdaq Composite inched down 4.1% to close at 10,847.69 on Tuesday, the tech-heavy index was down 10% over the past three days. The Dow Jones Industrial Average plunged 2.3% to finish its trading day at 27,500.89. The S&P 500 slid 2.8% to close at 3,331.84.
Markets in Asia-Pacific declined Wednesday, with most of the losses in the technology shares regionally. Mainland Chinese stocks dropped today, with the Shanghai Composite inched down 1.86% to 3,254.63 while the Shenzhen component dipped 3.247% to 12,861.75. Hong Kong’s Hang Seng Index dropped 0.63% to close at 24,468.93. Over in Australia, the S&P/ASX 200 dropped 2.15% to close at 5,878.60, with shares of the country’s leading banks like Commonwealth Bank of Australia and Westpac edged down. In Japan, the Nikkei 225 declined 1.04% to 23,032.54 while the Topix index decreased 0.96% to close at 1,605.40. South Korea’s Kospi also fell 1.09% to close at 2,375.81. Overall, the MSCI Asia ex-Japan index shed 1%.
In the Commodity Markets, Crude Oil was trading mixed. Global benchmark Brent Crude futures inched up 0.2% to $45.22 per barrel. WTI crude futures rose 2.01% to $37.49 per barrel. In the precious metal, Spot gold inched down 0.2% to $1,935.88 per ounce. U.S. gold futures inched up 0.1% to $1,941.60. Elsewhere, silver rose 0.24% to $26.920 per ounce, platinum edged down to $907.32, and palladium dropped 0.66% to $2,280.47.
In the Cryptocurrency Markets, In a recent post by Chainalysis says that Ukraine has the first place in the Global Crypto Adoption Index 2020, accompanied by Russia and Venezuela at the second and third rank, respectively. BTC/USD inched down 0.85% and was trading at 10,645.0. Ethereum inched down 1.44% to $348.85. Litecoin was down 1.12% to 40.850, and Dash fell 3.54% to 75.15. Ripple edged down 0.90% to 0.224297, at the time of writing.
TECHNICAL SUMMARY
EUR/USD
EUR/USD D1
SELL SUGGESTION- SELL AT 1.17618, TAKE PROFIT AT 1.7557 AND STOP AT 1.17679
GBP/USD
GBP/USD D1
TRADE SUGGESTION – SELL AT 1.29200, TAKE PROFIT AT 1.29135 AND STOP AT 1.29135
USD/CAD
USD/CAD D1
TRADE SUGGESTION- BUY AT 1.31092 TAKE PROFIT AT 1.33446 AND STOP AT 1.34755
NZD/USD
NZD/USD D1
TRADE SUGGESTION- SELL AT 0.66112, TAKE PROFIT AT 0.65978 AND STOP AT 0.66252
DOW JONES
DOW JONES D1
TRADE SUGGESTION- SELL AT 27490, TAKE PROFIT AT 27155 AND STOP AT 278025
BRENT CRUDE
BRENT CRUDE D1
TRADE SUGGESTION- SELL AT 39.29, TAKE PROFIT AT 36.54 AND STOP AT 42.06
GOLD
GOLD D1
TRADE SUGGESTION- SELL AT 1924.88, TAKE PROFIT AT 1918.26 AND STOP AT 1931.1
BTC/USD
BTC/USD D1
TRADE SUGGESTION- SELL AT 9983.05, TAKE PROFIT AT 9825.63 AND STOP AT 10140.47
