News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.73% Germany 30: 0.67% FTSE 100: 0.66% US 500: 0.64% Wall Street: 0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/l7tN7uRmmb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/5M6zJ7kDnk
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/Lp5XGaWX7n
  • 🇭🇰 GDP Growth Rate QoQ Final (Q1) Actual: 5.4% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2021-05-14
  • 🇭🇰 GDP Growth Rate YoY Final (Q1) Actual: 7.9% Previous: -2.8% https://www.dailyfx.com/economic-calendar#2021-05-14
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/zD9UMxLCzr
  • Heads Up:🇭🇰 GDP Growth Rate YoY Final (Q1) due at 08:30 GMT (15min) Previous: -3% https://www.dailyfx.com/economic-calendar#2021-05-14
  • Heads Up:🇭🇰 GDP Growth Rate QoQ Final (Q1) due at 08:30 GMT (15min) Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-05-14
  • 🇵🇱 GDP Growth Rate YoY Prel (Q1) Actual: -1.2% Expected: -1.3% Previous: -2.8% https://www.dailyfx.com/economic-calendar#2021-05-14
  • 🇵🇱 GDP Growth Rate QoQ Prel (Q1) Actual: 0.9% Expected: 1.1% Previous: -0.7% https://www.dailyfx.com/economic-calendar#2021-05-14
Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

Daniel Moss, Analyst

Nasdaq 100, Dow Jones Industrial Average, US Elections, US-China Tensions – Talking Points:

  • Simmering US-China tensions may weigh on risk assets in the absence of impactful economic data.
  • Nasdaq 100 poised to move higher after sliding back to key support.
  • Ascending Schiff Pitchfork guiding the Dow Jones Industrial Average higher.

Asia-Pacific Recap

The haven-associated US Dollar and Japanese Yen nudged marginally lower during Asia-Pacific trade as the Bank of Japan confirmed they will continue to “take additional easing measures if necessary”.

Global equity markets moved higher, led by the Australian ASX 200 index which soared as much as 1.22% early in the session before closing just shy of 6000.

Gold and silver gained as US 10-year Treasury yields dipped just over 1 basis point.

Looking ahead, the Euro-area’s second quarter GDP release headlines the economic docket as focus turns to the European Central Bank monetary policy meeting on September 10.

Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

DailyFX Economic Calendar

Simmering US-China Tensions May Weigh on US equities

In the absence of meaningful economic data, recent comments from President Donald Trump stating that “we’re going to end our reliance on China” may weigh on US benchmark equity indices ahead of the Federal Reserve’s monetary policy meeting on September 16.

Of course, one could argue that escalating anti-China rhetoric is to be expected in the run-up to US general elections in November and given the frequency of Trump’s attacks on Beijing, the market may have become somewhat desensitized to trade-related headlines.

Moreover, the President currently lags his Democratic challenger by 8% in the national polls, with 50.4% of Americans preferring Joe Biden over a second Trump term. Therefore, it seems relatively logical to discount the recent escalation in US-China tensions.

However, with the President noticeably narrowing the gap in recent weeks, the proposed “decoupling” of the world’s two largest economies may become a somehwat likelier scenario and in turn significantly hamper the performance of risk assets.

To that end, trade-related headlines may begin to dictate the near-term outlook for benchmark equity indices, with a marked escalation in tit-for-tat exchanges possibly fuelling a period of significant risk aversion and limiting the potential upside for the tech-heavy Nasdaq 100 index and Dow Jones Industrial Average.

Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

Data Source – Bloomberg

Nasdaq 100 Daily Chart – Perched Precariously atop Trend Support

The Nasdaq 100 index’s three-day retreat from its record high (12466.6) appears to be nothing more than a short-term pullback, as price bounces away from confluent support at the August 7 swing-high (11291.8) and 5-month uptrend.

Although the RSI plunged through its uptrend extending from the March extremes it remains constructively positioned above its neutral midpoint, which suggests that bearish momentum may be fading.

Furthermore, a bullish Hammer candle just above key support is indicative of swelling positive momentum and could encourage would-be buyers if price clambers back above the 21-day moving average (11650.5).

A daily close above the 11700 level would probably open the door for a push to resistance at the 61.8% Fibonacci (12018.5) and could carve a path for price to retest the yearly high (12467).

Conversely, a daily close below the August 7 swing-high (11291.8) could invalidate bullish potential and ignite a correction back towards the June high (10310).

Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

Nasdaq Index daily chart created using TradingView

Dow Jones Daily Chart – Schiff Pitchfork Directing Price Higher

In a similar fashion to its tech-heavy counterpart, the Dow Jones Industrial Average’s sharp two-day retreat from its post-crisis high also appears to be nothing more than a short-term pullback, as confluent support at the January low (28130.2) and Schiff Pitchfork parallel suppress selling pressure.

With price tracking within an ascending Schiff Pitchfork and both the RSI and MACD indicators travelling in bullish territory, a push back towards the monthly high (29193.6) looks on the cards if support at the 21-day moving average continues to guide price higher.

A daily close above the psychologically pivotal 29000 level would probably carve a path back to test the record high set in early February (29595).

On the other hand, a break back below the 21-DMA could inspire a more sustained pullback and bring the trend-defining 50-MA into play (27250).

Nasdaq, Dow Jones Could Extend Slide Amid Simmering US-China Tensions

Dow Jones Industrial Average daily chart created using TradingView

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES