Apparel retailer Gap is improving more than expected, but the parent company of Old Navy and Banana Republic still has work to do to turn things around.
Nasdaq Composite Technical Analysis
The Nasdaq Composite this week rallied into a key
swing level following the miss in the US CPI report. The
market is still trading based on the inflation and interest rates expectations
and ignoring the deteriorating labour market and growth data. The lack of a
rally following the better than expected US Retail Sales data and
the miss in the US PPI and Jobless Claims figures
though, might be a sign that the rally got overstretched and we could see at
least a pullback.
swing level following the miss in the US CPI report. The
market is still trading based on the inflation and interest rates expectations
and ignoring the deteriorating labour market and growth data. The lack of a
rally following the better than expected US Retail Sales data and
the miss in the US PPI and Jobless Claims figures
though, might be a sign that the rally got overstretched and we could see at
least a pullback.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite
is consolidating just below a key swing level at 14155 after an incredible
rally following the miss in the US CPI report. We can also notice that the price
got a bit overstretched as depicted by the distance from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that in case we get
a pullback, the buyers might want to lean on the support zone
around the 13700 level where they will also find the red 21 moving average for confluence. The
sellers, on the other hand, are likely to step in already at these levels with
a defined risk above the high to position for a drop into the support.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price
is diverging with
the MACD right
at the key resistance. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. In this case, the buyers might also want to
lean on the upward trendline where
there’s also the 38.2% Fibonacci
retracement level for confluence. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the support zone.
This article was written by FL Contributors at www.forexlive.com.
EU to ban sales to Russia of tankers for crude oil or petroleum products
- To ban sales to Russia, or for use in Russia, of tankers, of any origin, for crude oil or petroleum products
- To ban direct or indirect import, purchase or transfer of diamonds from Russia
- Ban includes stones processed in third countries
- To phase in ban on Russian diamonds processed in third countries from March next year
Whatever the case is, it isn’t going to get Russia to budge. We’re well over a year into the conflict between Russia and Ukraine and this looks to be the new normal in the region already.
This article was written by Justin Low at www.forexlive.com.
Dollar extends declines further across the board
It’s shaping up to be a rough end to the week for the dollar as markets are finally following through on the moves on Tuesday. Treasury yields are pushed lower and the greenback is suffering for it, with USD/JPY now down 0.9% to 149.30 on the day.
10-year yields are down 5.2 bps to 4.392% and stocks are looking to work with that to finish the week with a flourish. European indices are up roughly 1% while S&P 500 futures are now up 0.2% on the day after a bit more of a tentative start.
Going back to the dollar, it is even trading lower against the euro and pound now with EUR/USD up 0.2% to 1.0870 and GBP/USD up 0.2% to 1.2433. The latter traded to a low of 1.2375 earlier on after softer UK retail sales data.
The antipodeans are also capitalising on that, with AUD/USD testing waters above 0.6500 again in trying to chase a technical breakout as outlined here.
This article was written by Justin Low at www.forexlive.com.
ECB’s Holzmann: We stand ready to raise rates again if necessary
- Markets should know that it’s not the end of the story yet
- Anything can happen in December meeting
Interestingly enough, when asked if he does rule out a rate cut in Q2 next year, he replies „that would be a bit early“. It’s a confusing one as does it mean it is too early to rule out rate cuts or does he deem that Q2 is too early to think about rate cuts? I reckon he means the latter but comments like this can be lost in translation at times.
This article was written by Justin Low at www.forexlive.com.
AUD/USD buyers get a second bite at the cherry
It’s been a back and forth last few days for AUD/USD but it looks like perhaps buyers are finally about to win out the week. With the dollar tumbling alongside bond yields today, the aussie is managing to pick itself back up to trade above 0.6500 currently. And in this instance, it’s a second chance for redemption for buyers in trying to clinch a key technical break.
The second bite of the cherry if you will is the attempt to hold a firm break above 0.6500 and the 100-day moving average (red line).
That will solidify a stronger bullish momentum going into next week, as the better risk mood in stocks is also helping out with the upside push. The next key target to watch if this is held will be the 200-day moving average (blue line) at 0.6593 currently.
This article was written by Justin Low at www.forexlive.com.