European Open: USD/NOK Remains Appealing to Bears
Matt Simpson September 2, 2021 5:55 AM
Bears have been the dominant force on USD/NOK these past few weeks, and they may not be done with the pair just yet.
- Australia's ASX 200 index fell by -64.6 points (-0.86%) and currently trades at 7,462.50
- Japan's Nikkei 225 index has risen by 75.47 points (0.27%) and currently trades at 28,525.96
- Hong Kong's Hang Seng index has risen by 19.66 points (0.08%) and currently trades at 26,047.95
UK and Europe:
- UK's FTSE 100 futures are currently down -4.5 points (-0.06%), the cash market is currently estimated to open at 7,145.34
- Euro STOXX 50 futures are currently down -5 points (-0.12%), the cash market is currently estimated to open at 4,222.27
- Germany's DAX futures are currently down -39 points (-0.25%), the cash market is currently estimated to open at 15,785.29
- DJI futures are currently down -14 points (-0.482%)
- S&P 500 futures are currently down -0.25 points (0%)
- Nasdaq 100 futures are currently down -2.75 points (-0.06%)
Learn how to trade indices
It was a mixed picture for Asian equities overnight as traders prepared for two key US employment reports over the next two days. The Nikkei 225 rose to a 6-week high and found resistance at the monthly R1 pivot and trend resistance (projected for the March high). As a Doji formed it suggests a pause in trend or retracement but it is one to monitor for a potential breakout. Conversely, the ASX 200 fell over 1% as BHP and miners weighed on the broader index, with cases rising notably in NSW and VIC. The index tested its long-term trend support line, closing back below 7500. So this is also one to watch for a breakout, but to the downside.
View today’s video: Bullish Reversal on Russell 2000, Palladium Set to Fall?
FTSE 350: Market Internals
FTSE 350: 4142.37 (0.42%) 01 September 2021
- 248 (70.45%) stocks advanced and 90 (25.57%) declined
- 61 stocks rose to a new 52-week high, 0 fell to new lows
- 77.27% of stocks closed above their 200-day average
- 82.39% of stocks closed above their 50-day average
- 24.72% of stocks closed above their 20-day average
- + 8.82% - IP Group PLC (IPO.L)
- + 8.00% - Petropavlovsk PLC (POG.L)
- + 7.71% - Tyman PLC (TYMN.L)
- -3.80% - WH Smith PLC (SMWH.L)
- -3.31% - Ashmore Group PLC (ASHM.L)
- -2.90% - Chrysalis Investments Ltd (CHRY.L)
Forex: Tight ranges overnight
Volatility remained low overnight with a lack of market-moving news, and traders are now waiting for the latest set of employment data from the US.
With APD employment falling incredibly short of expectations, then the US dollar could find itself under additional pressure should further signs of weakness appear in today’s employment claims report. Currently, initial and continual claims sit around 17-month lows and only minor adjustments are forecast for today.
EUR/GBP is yet to convincingly break above the weekly R1 pivot (0.8600) but prices held near yesterday’s high overnight so it still shows the potential to break higher from here. Out bias remains bullish above the 0.8542 low, although the 0.8565 low could also be used to fine-tune management.
USD/NOK has fallen over -5% since printing a double top on the 20th August. It has tried to build a base around the 200-day eMA so a minor bounce from current levels is a potential scenario, yet momentum currently favours new lows overall.
A higher low has formed on the four-hour chart although prices are holding beneath the 0.8717 low (for now). As we’re currently in a 3-wave countertrend move we’d prefer to fade into bounces towards resistance areas, such as the 50% retracement area of 61.8% Fibonacci level near the 15th August low.
Learn how to trade forex
Commodities edge lower.
Commodities were broadly lower yesterday with the CRB commodity basket falling -0.6% after bullish momentum failed to retest the 2021 high earlier this week. We see the move as corrective at this stage and the daily trend remains bullish overall.
Oil prices were slightly lower overnight after OPEC+ agreed to gradually increase supply and reports that Iran plans to ignore US sanctions and increase output.
Gold prices continued to consolidate in a tight range, and unless tonight’s employment data can stir things up then we may need to wait until tomorrow’s NFP report.
Up Next (Times in BST)
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the pair you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
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.