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.

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
Bullish
Oil - US Crude
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
Wall Street
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/3f5sLijsVB
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/PO93mIKAZP
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

Margaret Yang, CFA, Strategist

NASDAQ, NIKKEI 225 INDEX, GOLDPRICE OUTLOOK:

  • Nasdaq fell 1.69% as investors switched out from technology shares into cyclical ones
  • Japan’s Nikkei 225 index retraced to 22,700 after hitting a key resistance at 22,900
  • Gold price registered its largest two-day fall since 2013, coming down to US$ 1,880

Nasdaq Index Outlook:

The Nasdaq index fell 1.69% on Tuesday. Sectoral rotation was observed in the US stock markets these days, in which investors took profits from the technology rally and switched into value and cyclical-sensitive ones. A seemingly over-stretched valuation in the tech sector eclipsed vaccine hopes and improving economic data, which points to a potential rotation towards. value and cyclical stocks.

Uncertainties surrounding the US fiscal stimulus package are also weighing on risk appetite across the broader markets. The Treasury yield curve has steepened lately, suggesting rising inflation prospects and perhaps a more hawkish-biased central bank outlook.

Among the S&P 500 sectors, financials (+1.29%) and industrials (+0.53%) were leading while utilities (-2.13%), real estate (-1.87%), and information technology (-1.78%) were lagging.

S&P 500 Sector performance 11-8-2020

Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

Technically, the Nasdaq has come to a key support level at 10,900 – the lower bound of its ‘ascending channel’ as drawn in the chart below. Breaking below this support would likely open the room for more downside towards the next support at 10,570 – the 50-Day Simple Moving Average (SMA) line. A deeper pullback may even come to the 23.6% Fibonacci retracement level at 10,190.

Nasdaq IndexDaily Chart

Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

Nikkei 225 Index Outlook:

Japan’s Nikkei 225 stock benchmark entered into consolidation alongside the broader Asia-Pacific indices on Wednesday. Markets face a major test later this week when Washington and Beijing sits to review the phase-one trade deal. Market sentiment is tuning towards the cautious side against this backdrop.

Technically, the Nikkei 225 failed to break above a key resistance level at 22,900 – the upper bound of its rangebound zone. The index may continue to consolidate between 22,000 to 22,900 in the days to come without clear catalysts. However, if the US market enters into a meaningful correction, the Nikkei may follow.

Nikkei 225 IndexDaily Chart

Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

Gold Price Outlook:

Gold prices suffered from their largest two-day selloff since 2013, falling as much as 6% before extending losses during Wednesday’s APAC session. A stronger US Dollar and favorable macroeconomic data are weighing on gold prices. This consolidation may have more room to go as profit-taking activities kick in unexpectedly after an astonishing 14% gain over the past three weeks.

Technically, gold prices have reached the 76.4% Fibonacci retracement level at US$ 1,870 before bouncing slightly to US$ 1,890. If the US$1,870 support fails to hold, gold prices may drop further to test the next key support at US$ 1,808.

Gold PriceDaily Chart

Nasdaq Drops as Tech Rotates Out of Favor, Nikkei 225 Tests Resistance

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

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

DISCLOSURES