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
GBP/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
More View more
Real Time News
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • 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/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • 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/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
Nasdaq 100, S&P 500, Dow Jones Technical Outlook for the Week: Momentum Slowing?

Nasdaq 100, S&P 500, Dow Jones Technical Outlook for the Week: Momentum Slowing?

Daniel Dubrovsky, Strategist

Nasdaq 100, S&P 500, Dow Jones, Technical Analysis – Week Ahead

  • Nasdaq 100 closes at record high, but momentum seems to be fading
  • S&P 500 futures also facing a similar situation, though gains smaller
  • Dow Jones futures eye a retest of record high, will momentum follow?

Nasdaq 100 Technical Analysis

The Nasdaq 100 closed at a record high to start off this week, extending the dominant uptrend since last year’s Covid-induced bottom. Prices took out the key 14996 – 15172 resistance zone that had been in play since July. That exposed the midpoint of the Fibonacci extension at 15485. Above that price sits the 61.8% level at 15731 where beyond that sits the 78.6% point at 16080.

Negative RSI divergence is still present however, showing that upside momentum is fading. That can at times precede a turn lower. Such an outcome may place the focus on the 50- and 100-day Simple Moving Averages (SMAs). These could reinstate the dominant focus to the upside. Clearing the 100-day SMA could raise the risk of a more prominent correction, exposing the former 13829 – 14059 inflection zone.

Nasdaq 100, S&P 500, Dow Jones Technical Outlook for the Week: Momentum Slowing?

Chart Created in TradingView

S&P 500 Technical Analysis

S&P 500 futures just barely managed to close at a record high on Monday, finishing at 4475 where the previous record was at 4474 on August 13th. This means that the 78.6% Fibonacci extension at 4486 still remains in play as immediate resistance. A rising trendline from April, acting as a ceiling, seems to be maintaining a fairly consistent slope of appreciation.

Negative RSI divergence is also present here, showing that upside momentum is fading. A turn lower could place the focus back on the 50- and 100-day SMAs. These may reinstate the dominant focus to the upside, where the 100% extension level may come into play at 4611. Otherwise, clearing the 100-day line may open the door to a material turn lower. That would expose lows from May and June on the daily chart below.

Nasdaq 100, S&P 500, Dow Jones Technical Outlook for the Week: Momentum Slowing?

Chart Created in TradingView

Dow Jones Technical Analysis

Dow Jones futures started off on an upbeat this week, but prices remain under the August record close at 35534. That establishes the former as a prominent resistance level. Taking out the record high would expose the 38.2% level and midpoint of the Fibonacci extension at 36357 and 37425 respectively. Still, keep an eye on RSI, where negative divergence may continue to undermine the Dow’s push higher.

The 100-day SMA is sitting relatively close below. Confirming a breakout under this line may open the door to a material turn lower in the index. Such an outcome could place the focus on the July and June low at 33623 and 32902 respectively. Subsequently falling under these key price points may increase the risk of further losses, exposing the March 25th and March 4th low at 31951 and 30512 respectively.

Dow Jones Technical Analysis

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES