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
EUR/USD
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
Oil - US Crude
Bearish
Wall Street
Bearish
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
Mixed
More View more
Real Time News
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/ir20IjaJFu
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Oil - US Crude: -0.97% Silver: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H9676jm7CT
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.01% 🇨🇦CAD: -0.01% 🇯🇵JPY: -0.07% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tm1u1cKErl
  • #Market Snapshot $AUDUSD sliding to fresh session-lows on the back of #MorganStanley's suggestion #IronOre prices will fall in Q4 Haven-linked $USD and $JPY pushing back to session-highs after dipping lower in early trade $Gold nudging slightly higher https://t.co/FsT9RIZYvR
  • All eleven S&P 500 sectors ended deeply in the red, with energy (-4.55%), information technology (-3.21%), materials (-2.93%) and real estate (-2.91%) among the worst performers. A whopping 94.7% of the S&P 500 components closed lower. https://t.co/kqP3xPZBJf
  • Rising demand for safety boosted the US Dollar, which climbed for a third day to 94.43 - a two-month high. Strong USD dampened precious metal prices, and put pressure on risk-linked currencies namely AUD, NZD and NOK. https://t.co/ijthZpUdTn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.57%, while traders in EUR/GBP are at opposite extremes with 63.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/zn9sbgM386
  • While @IG_US Client Sentiment is offering a mixed outlook for the S&P 500 and #Dow Jones, these could be at risk to a turn lower based on multiple bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/9kYnq6hH1f https://t.co/YIvXZ76eH1
  • #NOK, #AUD and #NZD are expected to be the most-active #G10 majors versus #USD with one-week implied volatility at 16.33, 12.22 and 12 respectively [delayed] -BBG
  • $DJIA futures carving out a Falling Wedge pattern just above the 200-MA after falling over 8% from the September 3 post-crisis high. $DJI #DowJones Is a recovery in the works? Find out how to trade these patterns and more here: https://www.dailyfx.com/education/technical-analysis-chart-patterns/falling-wedge.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/7dfYFgkpub
Dow Jones, S&P 500 & FTSE 100 Forecasts for the Week Ahead

Dow Jones, S&P 500 & FTSE 100 Forecasts for the Week Ahead

2020-08-15 04:00:00
Peter Hanks, Analyst
Share:

Dow Jones, S&P 500, FTSE 100 Price Outlooks:

  • The Dow Jones poked above resistance to establish a fresh high that might allow for further gains
  • The S&P 500 stands narrowly beneath all-time highs, a key psychological landmark
  • Elsewhere, the FTSE 100 saw a tumultuous trading week as resistance worked to stall a break out

Dow Jones Technical Forecast

Outlook: Bullish

The Dow Jones stepped timidly above its June high last week to establish a new post-covid peak around the 28,000 level, an encouraging development for those in pursuit of a bullish continuation. That said, price action undoubtedly slowed after price surpassed the June peak, evidenced by tiny candlesticks to finish the week. While the lack of enthusiasm might warrant concern in the shorter-term, the establishment of a new high is a positive technical development for the medium term in my opinion.

Dow Jones Price Chart: Daily Time Frame (January 2020 – August 2020)

Dow Jones Price Chart

To that end, pullbacks from the current altitude could look for support at the June peak, the Fibonacci level at 26,883 and, perhaps most importantly, the rising trendline from mid-May. The line is derived from a series of higher-lows that have helped create a bullish technical backdrop.

Starts in:
Live now:
Sep 30
( 15:09 GMT )
Recommended by Peter Hanks
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

Therefore, declines in the near future may serve as healthy consolidation unless a break beneath the trendline and the late-July swing-low occurs, which would then warrant a reassessment of the technical outlook. All in all, the technical backdrop is encouraging for a continuation higher, but prudent strategy may suggest patience until a more advantageous entry point presents itself.

S&P 500 Technical Forecast

Outlook: Neutral

The S&P 500 finds itself in similar standing. Creeping just beneath the index’s all-time high around 2,397, price has almost fully recovered from the covid crash and a confident breach above prior peaks might open the door for a continuation higher. That said, the breach has been anything but confident as price meandered through the same price range for much of last week.

S&P 500 Price Chart: 4 – Hour Time Frame (February 2020 – August 2020)

S&P 500 Chart

Consequently, the S&P 500 appears vulnerable with its current standing – just like the Dow Jones – as both are knocking on the door of new levels, but neither is doing so with a lot of confidence or enthusiasm – which does not bode well for a potential follow-through.

With that in mind, I would again suggest patience if looking to trade the US indices as the current risk-reward profile is not particularly enticing in my view. Should a modest pullback occur, it would allow for more attractive entry points while offering much-needed consolidation after weeks of nearly unabated gains, given that the pullback did not materially change the technical picture.

FTSE 100 Technical Forecast

Outlook: Neutral

If in pursuit of material technical changes, the FTSE 100 is assuredly not the index to consult. However, it may present a prime opportunity for range traders as the technical formation that has been present since mid-June displayed its influence once again last week.

FTSE 100 Price Chart: 4 – Hour Time Frame (May 2020 – August 2020)

FTSE 100 Index

After a better than expected UK GDP reading helped spark a rally last week, it appeared as though the FTSE 100 may have finally found the spark necessary to break out of the confines of its horizontal trading range. Evidently, resistance around the 6,300 level was unwilling to yield to bullish intentions, leading to a quick reversal lower for the FTSE 100 which seems to have found some support near the Fibonacci level at 6,065.

Top 8 Forex Trading Strategies and their Pros and Cons

While the initial move looked promising, the abrupt turn lower helps highlight the strength of the current technical formation which could provide an attractive opportunity for range traders. Either way, it seems as though the FTSE 100 is unwilling to break higher at this time, so the forecast for the coming weeks remains neutral until the technical pattern can be broken. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for DailyFX.com

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

DISCLOSURES