DOW JONES, US DOLLAR, SILVER PRICE OUTLOOK:Dow Jones Index Outlook:Dow Jones Industrial Common fell over 1.8% on Monday, dragged
DOW JONES, US DOLLAR, SILVER PRICE OUTLOOK:
Dow Jones Index Outlook:
Dow Jones Industrial Common fell over 1.8% on Monday, dragged by supplies (-4.88%), industrials (-4.2%) and healthcare (-2.54%) sectors (Desk under). A whopping 86.7% of the parts within the index ended decrease, and all 9 sectors have been within the pink.
Traders are weighing lockdown plansin Europe amid resurging coronavirus instances, which can hurdle the financial restoration. In the meantime, a pending US fiscal stimulus and Fed’s reluctance to ease extra after the FOMC assembly additionally dampened prospects of additional fiscal and financial help. Consequently, Asia-Pacific equities could open broadly decrease on Tuesday.
The clock is ticking till the US Presidential Election, an occasion that’s extremely necessary and will carry a big quantity of uncertainty. Using the volatility or staying on the sidelines till the political skies are cleared afterwards? This can be a query that merchants ought to contemplate.
Some property could also be extra delicate to election information, reminiscent of Dow Jones, S&P 500, Nasdaq, US Greenback index, USD/JPY, AUD/USD, gold, silver, and VIX.
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Dow Jones Index Sector efficiency 21-9-2020
Supply: Bloomberg, DailyFX
Technically,the Dow Jones index discovered some help at its 100-Day SMA and rebounded. The formation of a giant bearish candlestick has led to a widening of its Bollinger Band, which flags extra draw back danger within the close to time period. The MACD indicator dived additional into adverse territory. Breaking the 100-Day SMA will doubtless open the door for additional draw back with a watch on 26,600 – the 23.6% Fibonacci retracement.
Dow Jones Index – Day by day Chart
XAG/USD Worth Outlook:
Silver costs plummeted over 8% on Monday, registering their largest single-day swing seen in multiple month. Much like gold, silver has misplaced its perceived safe-haven traits just lately, falling alongside danger property when sentiment sours. A robust rebound within the US Greenback index final night time doubtless catalyzed the freefall of XAG/USD, resulting in a agency breaking of its 20- and 50-Day SMA.
The US Greenback is prone to stay a key issue influencer on silver costs, and in addition gold.
The potential cross over of its 20-Day SMA under 50-Day SMA is prone to type a “Dying Cross”, which is a medium-term bearish indicator.
XAG/USD Worth – Day by day Chart
US Greenback Index Outlook:
The US Greenback index surged to its highest stage in six weeks earlier than paring some good points this morning. Rising coronavirus instances in Europe, a pending US stimulus bundle, and the US Presidential Election season in all probability have reignited demand for security, and put the US Greenback on bid.
Technically, the US Greenback index tried to interrupt out a rangebound zone of 91.8-93.8, with its momentum biased in direction of the upside. The MACD indicator has converged with the worth on the chart, suggesting a possible breakthrough above 93.Eight resistance.
US Greenback Index – Day by day Chart
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— Written by Margaret Yang, Strategist for DailyFX.com
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