Thursday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||47.36||3.05%|
The recent surge in the EUR/USD hasn’t gone unnoticed among politicians and central bankers, and the arguably most important currency pair’s rise to 1.20 triggered a response today from the ECB that stated the risks of a too strong currency. It took only a few hours for the other side of the trade to respond, when Treasury Secretary Steve Mnuchin warned of the risks of a strong Dollar. As traders can imagine the currencies reacted with a crazy session to the verbal intervention, and the pair has now traded at 1.2075 and 1.1825 in only three days. With the recent reversal day in the Dollar, odds favor a rally in the Greenback, especially given the excessively negative sentiment towards the currency.
EUR/USD, 4-Hour Chart Analysis
Stock markets mostly ignored the FX volatility, as especially in the US, the short-term strength of the major indices is still apparent. The NASDAQ is just shy of its all-time high right now, and given the positive momentum, a break-out to new highs looks baked in the cake. European equities are still under pressure, despite the dip in the Euro in the last couple of days, and that could spell trouble for the coming weeks. Gold regained its strength after a pull-back to $1300, confirming the recent key break-out in the precious metal, while oil is also showing signs of life today after a period of dismal performance.
Gold, 4-Hour Chart Analysis
Litecoin is leading the way higher today, on a generally bullish day for cryptocurrencies. LTC finally touched the $70 level and reached our next target just above that key resistance. Bitcoin also hit a new high again, above $4700 while Ethereum failed to reach the $400 level yet. Dash and Mare trading below their recent record levels as both coins are stretched concerning the long-term picture, while NEO is still struggling to move away from the $30 zone after its deep correction. Ripple is also in a bullish move today, just as NEM, while Ethereum Classic remains the most notable laggard of the sector, at least regarding the short-term performance.
LTC/USD, 4-Hour Chart Analysis
The tech benchmark is getting close to the 6000 level once again after a lengthy and volatile correction that ended yesterday with a clear break-out of the dominant pattern. The long-term uptrend remains intact in the NASDAQ, and although we expect weakness during the autumn, the short-term momentum is clearly bullish and a new high is likely in the coming days, as the sector is outperforming the rest of the market. Strong support levels are found near 5850 and 5725.
NASDAQ 100 Futures, 4-Hour Chart Analysis
Key Economic Releases on Thursday
|16:00||US||Pending Home Sales||0.3%||0.4%||1.5%|
Key Economic Releases on Friday
|14:30||US||Average Hourly Earnings||0.2%||0.3%|
|16:00||US||ISM Manufacturing PMI||56.5||56.3|
Featured image from Shutterstock