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Daily Forex Technical Analysis By Sandra

Discussion in 'Technical Analysis' started by Sandra S., Sep 2, 2015.

  1. Sandra S.

    Sandra S. Forum Member

    Sep 1, 2015
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    Worldwide stocks plunged this Tuesday, on fear Chinese economic slowdown will spread like wildfire among other major economies. Wall Street closed in the red, with the DJIA down 469 points or 2.84%, closing the day at 16,058.35. The S&P 500 SPX, fell 58.33 points, or 2.96%, to 1,913.85.

    The Nasdaq Composite plummeted 140.40 points, or 2.94% to 4,636.10, erasing all previous 2015 gains and turning negative year-to-date, resulting in one of the worst trading days of the year in the US. As for the DJIA, the index posted a daily low of 15,978 before recovering some 100 points before the close maintaining, however, a strong negative tone as the daily chart shows that the 20 SMA presents a sharp bearish slope, still well above the current level, whilst the technical indicators extended their declines, now approaching oversold territory with sharp bearish slopes.

    For this Wednesday, the 4 hours chart supports further declines, as the index has been steadily falling below its 20 SMA, now bearish around 16,446, whilst the technical indicators head steadily lower in negative territory. A break below the daily low exposes the index to a continued decline towards 15,570, August 26th daily low, en route to Black Monday's low of 15,192.

    Support levels: 15,978 15,850 15,711

    Resistance levels: 16,250 16,330 16,446


    The FTSE 100 followed its European counterparts, losing 3.03% daily basis, to close at 6,058.54 after a long weekend. Having been closed on Monday due to a local holiday, the London benchmark plummeted, with mining companies leading the way lower, as Glencore dropped 10% and Anglo American closed down 7.6%.

    The index is barely holding above the 6,000 level as a new day starts in Asia, and poised to extend its decline according to technical readings.

    The daily chart maintains the strong negative tone seen on previous updates with the technical indicators resuming their declines near oversold levels, and the index below past week opening. In the shorter term, the 4 hours chart shows that the technical indicators are ready to cross their mid-lines towards the downside, whilst the index is back below its 20 SMA.

    Support levels: 5,983 5,929 5,824

    Resistance levels: 6,053 6,116 6,214


    Spot gold surged up to $1,147.90 a troy ounce in London, as continued global jitters triggered demand for the safe-haven asset. Investors however, took profits during the American afternoon, over uncertainty about the upcoming FED economic decision, as some of the Central Bank officers remain "reasonably confident" on inflation.

    If the upcoming US Nonfarm Payroll report beats expectations, chances of a rate hike in September will increase again, which may send the commodity back towards its recent multi-year lows. Daily basis, the metal is closing in the green for fourth day in-a-row, above a bullish 20 SMA and with the technical indicators extending their advances above their mid-lines, all of which maintains the risk towards the upside.

    In the 4 hours chart, the technical stance is neutral-to-bullish, as the technical indicators lack directional strength, but remain above their mid-lines, whilst the 20 SMA heads slightly higher below the current level.

    Support levels: 1,137.11 1,126.70 1,118.0

    Resistance levels: 1,144.70 1,152.90 1,160.10


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