DAILY OUTLOOK FOR FUNDAMENTAL ANALYSIS
U.S. stocks fell for a sixth day on Monday as time runs out for the government to pass a deal to avoid default and the economy shows further signs of stalling. Stocks tumbled in the first 30 minutes of trading after a report that said the pace of growth in the U.S. manufacturing sector slowed more than expected in July, according to the Institute for Supply Management. On the debt deal front, President Obama announced a compromise that would shrink the deficit by around $2.4 trillion in the next 10 years.
Dow Jones industrial average was down 0.09%. The Standard & Poor's 500 Index was down 0.41%. The Nasdaq Composite Index was down 0.43%.
DAILY OUTLOOK FOR TECHNICAL ANALYSIS
U.S. stocks fell for a sixth day on Monday as time runs out for the government to pass a deal to avoid default and the economy shows further signs of stalling. Stocks tumbled in the first 30 minutes of trading after a report that said the pace of growth in the U.S. manufacturing sector slowed more than expected in July, according to the Institute for Supply Management. On the debt deal front, President Obama announced a compromise that would shrink the deficit by around $2.4 trillion in the next 10 years.
Dow Jones industrial average was down 0.09%. The Standard & Poor's 500 Index was down 0.41%. The Nasdaq Composite Index was down 0.43%.
DAILY OUTLOOK FOR TECHNICAL ANALYSIS
By Anto and Tata
Dow Jones Newswire
Dow Jones Newswire
ASIAN INDEX FUTURES
On Monday, HangsengFutures is forming a bearish inverted hammer pattern on its daily chart.Hangseng Futuresopened gap up more than 300 points and long positions continued more dominating until the close of trading. So that Hangseng Futuresmanage to below at the psychological level of 22,600. (MT)
Nikkei Futuresis forming a bearish engulfing pattern on its daily chart.Nikkei Futuresopened gap up 75 points and long positions going to happen in mid- Asian trading session. But short selling happened until the close of Asian trading session and this continues until entering the U.S. trading session, so the strong support at 9800 successfully passed.(MT)
KOSPI futures remains trading slightly sideways, still the gauge trades inside a rising price channel which its upper line is at 286.10 and its lower line is at 278.30. On intraday basis, KOSPI futures tends to go upward with a firm break above the channel line will place 289.25 as further upside target. Failure to penetrate the upper line will prolong current sideways movement. (TS)
FOREX
EURUSD is forming a bearish engulfing pattern on its daily chart.On Monday, euro failed to pass the highest level in the previous week at 1.4460, and closed below the psychological level at 1.4300. From the beginning, impulse to buyback occurs so it had touched the highest level approaching 1.4453. Entering the US session until the end of trading session today, euro started to short sell so that at the close of the movement below the psychological level at 1.4300. (MT)
USDCHF is forming a bearish hammer pattern on its daily chart. Swiss franc failed to penetrate resistant levels at 0.7990 again and during the U.S. trading session, Swiss franc had successfully passed the strong support level at 0.7860 and closed at 0.7834, so still scoring record its lowest close in more than 20 years again. (MT)
A long black marubozu appears on the daily chart of GBPUSD suggesting the pair will likely continue dropping. Moreover when the pair can firmly break below initial support at 1.6236 which will open the way to 1.6193. Potential rebound targets are seen at 1.6320 and 1.6364 (TS)
A long legged doji shows up on the daily chart of USDJPY. It would suggest a reversal after the pair declines and hitting a fresh low at 76.29. However, since the downward power is powerful, we should expect the pair will remain bearish with 76.29 as the initial support and initial upside rebound targets are located at 77.41 and 78.04. (TS)
COMMODITIES
XAUUSD is forming a bearish long legged body pattern on its daily chart. In the earlier trading session, Gold traded sideways and touching the low level at 1609.30. Entering US trading session, gold trade had buyback and touched the highest level that day at 1631.55 again but closed at 1619.20. (MT)
As seen on daily chart, oil tests 200-day SMA which is at 95.41. A firm break which validated by a close well below the SMA, will lead oil to resume one-week bearish and test an upward trend line at 91.20. Initial upside rebound target is at 96.61 (TS)
TRADING STRATEGY
