Daily Market Report: October 28, 2020
Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.
October 28, 2020
Is the Loonie moving away from commodities?
U.S. stocks were mixed after the close on Tuesday, as gains in the Technology, Consumer Services and Utilities sectors led shares higher while losses in the Financials, Industrials and Oil & Gas sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.80%, while the S&P 500 index declined 0.30%, and the NASDAQ Composite index gained 0.64%.
The NASDAQ 100 RSI is bullish and calls for further advance.
Long positions above 11,180.00 with targets at 12,440.00 & 13,100.00 in extension.
Below 11,180.00 look for further downside with 10,680.00 & 10,300.00 as targets.
The loonie has traditionally been seen as a commodity-linked currency because of the country’s vast natural resources. But trillions of dollars of stimulus, along with interest rate cuts from the Bank of Canada, the Federal Reserve and other central banks have realigned those forces.
The RSI is bullish and calls for further upside.
Long positions above 1.3160 with targets at 1.3225 & 1.3240 in extension.
Below 1.3160, look for further downside with 1.3140 & 1.3120 as targets.
Gold stayed in the green lane for a third straight day on Tuesday and above the key $1,900 level as Covid-19 caseloads continued to dominate headlines, keeping risk appetite on a tight leash.
Intraday technical indicators are mixed.
Short positions below 1910.00 with targets at 1898.00 & 1891.00 in extension.
Above 1910.00, look for further upside with 1914.00 & 1920.00 as targets.
Oil prices slid more than 1 percent on Wednesday, paring the previous day's gains, as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand.
The RSI calls for a drop.
Short positions below 39.40 with targets at 38.30 & 37.90 in extension.
Above 39.40, look for further upside with 39.85 & 40.35 as targets.
The EUR/USD fell on Wednesday to close at 1.1780.
A break below 1.1770 would trigger a drop towards 1.1755.
Short positions below 1.1805 with targets at 1.1770 & 1.1755 in extension.
Above 1.1805, look for further upside with 1.1820 & 1.1835 as targets.
The pound looks poised for gains ahead of U.S elections, yet whether it can maintain momentum after the vote is still questionable. Option risk reversals show traders are no longer bearish the U.K. currency over a one-week horizon, opening the way for an advance before the Nov. 3 vote in America. Behind the shift in this gauge of positioning and sentiment lies the latest progress in Brexit negotiations, and a bias in the market to sell the dollar in the run-up to the election.
As long as the resistance at 1.3050 is not surpassed, the risk of the break below 1.3015 remains high.
Short positions below 1.3050 with targets at 1.3015 & 1.3000 in extension.
Above 1.3050, look for further upside with 1.3075 & 1.3100 as targets.
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