Daily Market Review & Financial Analysis

Confidence Creeping Back after Coronavirus Panic

February 13, 2020

U.S. Stock Market

Pivot : 9,518 Last : 9,613

Review:

Wall Street finished in the green with fears around the coronavirus cooling. The Dow Jones rose by 0.94%, the S&P 500 was up 0.65% and the NASDAQ Composite added 0.90% to its value.

Technical comment:

The NASDAQ 100 RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 9,518 with targets at 9,685 and 9,735 in extension.

Alternative scenario:

Below 9,518, look for further downside with 9,452 and 9,369 as targets.

Resistance 9,685 9,735 9,775
Support 9,518 9,452 9,369

Japanese Yen (JPY)

Pivot : 109.92 Last : 110.09

Review:

The yen fell against the dollar with investors increasingly positive regarding China’s efforts to slow down the spread of the coronavirus.

Technical comment:

The RSI shows upside momentum.

Preference scenario:

Long positions above 109.92 with targets at 110.15 and 110.30 in extension.

Alternative scenario:

Below 109.92, look for further downside with 109.80 and 109.70 as targets.

Resistance 110.15 110.30 110.55
Support 109.92 109.80 109.70

Gold

Pivot : 1,568.5 Last : 1,566.1

Review:

Gold rose by 0.18% with some still looking for a safe haven from global uncertainty.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

Short positions below 1,568.50 with targets at 1,561.50 and 1,558.50 in extension.

Alternative scenario:

Above 1,568.50, look for further upside with 1,571.25 and 1,574 as targets.

Resistance 1,568.5 1,571.3 1,574.0
Support 1,561.5 1,558.5 1,553.0

Crude Oil

Pivot : 50.9 Last : 51.5

Review:

Oil prices rose by 3.06%, registering the biggest gain since early January.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 50.90 with targets at 51.72 and 52.20 in extension.

Alternative scenario:

Below 50.90, look for further downside with 50.45 and 50.05 as targets.

Resistance 51.7 52.2 52.6
Support 50.9 50.5 50.1

Euro (EUR)

Pivot : 1.0895 Last : 1.0871

Review:

The EUR/USD fell by 0.37% after Federal Reserve Chairman Jerome Powell did little to support hopes of a rate cut on his second day of testimony.

Technical comment:

As long as the resistance at 1.0895 is not surpassed, the risk of a break below 1.0855 remains high.

Preference scenario:

Short positions below 1.0895 with targets at 1.0855 and 1.0840 in extension.

Alternative scenario:

Above 1.0895, look for further upside with 1.0910 and 1.0925 as targets.

Resistance 1.0895 1.0910 1.0925
Support 1.0855 1.0840 1.0830

British Pound (GBP)

Pivot : 1.2970 Last : 1.2955

Review:

The GBP/USD rose by 0.04% with the CB Leading Index coming in at 0.0% vs -0.2% previously.

Technical comment:

The RSI calls for a new downleg.

Preference scenario:

Short positions below 1.2970 with targets at 1.2945 and 1.2920 in extension.

Alternative scenario:

Above 1.2970, look for further upside with 1.2990 and 1.3010 as targets.

Resistance 1.2970 1.2990 1.3010
Support 1.2945 1.2920 1.2900

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.