Oil Drops as Saudis Cut Output

September 8, 2020

U.S. Stock Market

Pivot : 3,477.00 Last : 3,455.06

Review:

Wall Street was closed yesterday for the Labor Day holiday.

Technical comment:

As long as 3,477 is the resistance for S&P 500, look for choppy price action with a bearish bias.

Preference scenario:

Short positions below 3,477 with targets at 3,391 and 3,349 in extension.

Alternative scenario:

Above 3,477, look for further upside with 3,530 and 3,565 as targets.

Resistance 3,477.00 3,530.00 3,565.00
Support 3,391.00 3,349.00 3,300.00

Canadian Dollar (CAD)

Pivot : 1.3070 Last : 1.3095

Review:

The USD/CAD traded lower, closing at 1.3095.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 1.3070 with targets at 1.3115 and 1.3140 in extension.

Alternative scenario:

Below 1.3070, look for further downside with 1.3040 and 1.3015 as targets.

Resistance 1.3115 1.3140 1.3160
Support 1.3070 1.3040 1.3015

Gold

Pivot : 1,942.0 Last : 1,934.8

Review:

Gold traded flat, despite weak economic data from the U.S. released last week raising concerns about the global economic recovery from COVID-19.

Technical comment:

The immediate trend remains downward, but the momentum is weak.

Preference scenario:

Short positions below 1,942 with targets at 1,924 and 1,916 in extension.

Alternative scenario:

Above 1,942, look for further upside with 1,950 and 1,958 as targets.

Resistance 1,942.0 1,950.0 1,958.0
Support 1,924.0 1,916.0 1,908.0

Crude Oil

Pivot : 39.60 Last : 39.24

Review:

Oil prices fell on Monday as Saudi Arabia made its deepest monthly price cuts for supply to Asia in five months, amid ongoing uncertainty over Chinese demand.

Technical comment:

As long as 39.60 is the resistance, look for choppy price action with a bearish bias.

Preference scenario:

Short positions below 39.60 with targets at 38.50 and 38 in extension.

Alternative scenario:

Above 39.60, look for further upside with 40.10 and 40.65 as targets.

Resistance 39.60 40.10 40.65
Support 38.50 38.00 37.60

Euro (EUR)

Pivot : 1.170 Last : 1.184

Review:

The EUR/USD traded higher, closing at 1.1840.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 1.1700 with targets at 1.2015 and 1.2150 in extension.

Alternative scenario:

Below 1.1700, look for further downside with 1.1490 and 1.1380 as targets.

Resistance 1.202 1.215 1.230
Support 1.170 1.149 1.138

British Pound (GBP)

Pivot : 1.3195 Last : 1.3163

Review:

The GBP/USD traded lower, as Boris Johnson prepared to tell the EU he’s willing to let talks fail rather than compromise on what he sees as core Brexit principles.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 1.3195 with targets at 1.3140 and 1.3100 in extension.

Alternative scenario:

Above 1.3195, look for further upside with 1.3235 and 1.3270 as targets.

Resistance 1.3195 1.3235 1.3270
Support 1.3140 1.3100 1.3060

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