Risk Off/Risk On - Markets pare Losses from Asian Open
Joe Perry August 26, 2019 10:46 AM
Risk off was the theme to start the day as stocks gapped lower on the open, continuing Friday’s selloff. However, as Trump and China traded tweets during the European session, markets bounced and are now trading higher at the US open. Markets seem to have ignored negative data today, including Germany’s IFO, which came in weaker than expected. As for US Durable goods, although the headline number came in better than expected for July (2.1% MoM vs 1.1% MoM expected), the more important Core Durable goods came in much worse (-0.4% MoM for 0.1% expected). As such, markets this morning seem to be focused on only one thing: the trade war.
DXY led on the upside, opening at 97.53 after closing near 97.20 on Friday. Initial horizontal resistance at 98.08, and above that at Friday’s highs at 98.45
Source: Tradingview, FOREX.com
S&P 500 is 40 handles off the lows earlier. First support will at Friday’s highs at 2856.60. Below that, watch for overnight lows at 2810.30. Initial resistance comes in at 2904, then horizontal resistance that the market hasn’t been able to push through at 2938.80.
Source: Trading View, FOREX.com
USD/JPY also gapped down on the open, almost 80 pips, however has since rebounded and is currently up 68 pips near 106.00. Initial horizontal resistance 106.41. Next level is 106.75, which is the highs from Friday. Support is all the way down at the intraday lows near 104.50.
Source: Tradingview, FOREX.com
Keep a close eye out for headlines this morning! With UK on public holiday, as well as with many traders on vacation (last week of summer), we could see some volatility today!
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.