Forex trading long on Nasdaq? US indices fall on inflation and tech uncertainty [Video]
|In today’s Market Outlook, let’s take a look at Forex Trading on USDCAD, AUDCAD, WTI Crude Oil, the DAX40, the S&P500, the NASDAQ, and the Dow Jones Industrial Average.
We have seen a nice rally in US stock indices, and the Dow Jones Industrial Average hit an all-time high.
But yesterday, global equity markets sold off. Why?
The markets fell for various reasons, including US inflation pushing the Fed away from lowering interest rates and investor uncertainty over high valuations of AI tech companies.
From the technical point of view, price action is at a key level, the stochastic oscillator is very oversold and turning up.
However, if we zoom out to the daily chart on the S&P500 for example, we see that price is still above the lower trend line in the long-term bull run.
We see the DAX in a similar situation, but keep in mind, we are in a ranging market here, and the daily chart shows it.
Based on oil-related conflicts in Russia and Venezuela, the price of crude shot up and is now retreating.
The daily chart on WTI Crude shows that we are still in a technical downtrend with support below at $57.
Contrary to the US Federal Reserve, the BoE is still considering a rate cut.
This, and political instability, caused the pound to fall, but we are seeing a technical fight-back.
Price action on GBPUSD has reached the lower trendline and is turning up.
The stochastic oscillator was oversold and is turning up as well, but watch the UK political news for further developments.
Speaking of news, there is nothing scheduled for today, but we have Canadian CPI on Monday.
We are seeing a mixture of both strength and weakness among CAD pairs.
For example, weak against EUR, NZD and CHF but stronger against USD, and range trading in AUDCAD.
This mix gives us some good opportunities to trade with the trend if the news drives price action against the trend.
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