Daily Market Review & Financial Analysis

Big Trouble Looming in Hong Kong

August 13, 2019

U.S. Stock Market

Pivot : 2,950.00 Last : 2,895.05

Review:

Wall Street closed lower on Monday, after losses in the Basic Materials, Financials and Industrials sectors led shares lower. The Dow Jones fell by 1.49%, the S&P 500 dropped 1.23% and the NASDAQ lost 1.20% of its value.

Technical comment:

(Researched by Trading Central): the RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 2,950.00 with targets at 2,820.00 and 2,720.00 in extension.

Alternative scenario:

Above 2,950.00, look for further upside with 3,029.00 and 3,077.00 as targets.

Resistance 2,950.00 3,029.00 3,077.00
Support 2,820.00 2,720.00 2,610.00

Japanese Yen (JPY)

Pivot : 105.2 Last : 105.2

Review:

The dollar remained high against the safe-haven yen on Monday as Chinese troops gathering in Shenzhen has markets preparing for a military response to the uprising in Hong Kong.

Technical comment:

(Researched by Trading Central): the RSI calls for a new upleg.

Preference scenario:

Long positions above 105.20 with targets at 105.55 and 105.80 in extension.

Alternative scenario:

Below 105.20, look for further downside with 105.00 and 104.80 as targets.

Resistance 105.6 105.8 106.0
Support 105.2 105.0 104.8

Gold

Pivot : 1,450 Last : 1,505

Review:

Political unrest in Hong Kong and expectations that the Federal Reserve will be forced into another rate cut, with or without pressure from President Trump, kept Gold in the key $1,500 territory Monday.

Technical comment:

(Researched by Trading Central): the RSI calls for a new upleg.

Preference scenario:

Long positions above 1,450.00 with targets at 1,535.00 and 1,565.00 in extension.

Alternative scenario:

Below 1,450.00, look for further downside with 1,400.00 and 1,380.00 as targets.

Resistance 1,535 1,600 1,616
Support 1,450 1,400 1,380

Crude Oil

Pivot : 58.70 Last : 54.29

Review:

Oil prices were little changed Monday due to uncertainty over whether U.S. crude inventories fell or rose last week. The market opened to another tense week amid worries that China may end up buying Iranian oil, escalating its trade war with the United States.

Technical comment:

(Researched by Trading Central): the RSI is mixed to bearish.

Preference scenario:

Short positions below 58.70 with targets at 50.60 and 46.70 in extension.

Alternative scenario:

Above 58.70, look for further upside with 60.80 and 63.80 as targets.

Resistance 58.70 60.80 63.80
Support 50.60 46.70 42.45

Euro (EUR)

Pivot : 1.1205 Last : 1.1214

Review:

The EUR/USD traded slightly higher on Monday as Italy's political parties tried to stop a push for snap elections that opinion polls suggest would hand power to the populist right-wing Lega party of Matteo Salvini.

Technical comment:

(Researched by Trading Central): the RSI lacks downward momentum.

Preference scenario:

Long positions above 1.1205 with targets at 1.1225 and 1.1240 in extension.

Alternative scenario:

Below 1.1205, look for further downside with 1.1195 and 1.1185 as targets.

Resistance 1.1225 1.1240 1.1265
Support 1.1205 1.1195 1.1185

British Pound (GBP)

Pivot : 1.2060 Last : 1.2079

Review:

The GBP/USD was up 0.5% after rebounding from its lowest point since January 2017.

Technical comment:

(Researched by Trading Central): the RSI lacks downward momentum.

Preference scenario:

Long positions above 1.2060 with targets at 1.2100 and 1.2120 in extension.

Alternative scenario:

Below 1.2060, look for further downside with 1.2035 and 1.2015 as targets.

Resistance 1.2100 1.2120 1.2145
Support 1.2060 1.2035 1.2015

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.