A new trading week is coming…
What drives the market on September 7?
The US dollar has started the week on the positive footing after the upbeat Friday’s NFP. The greenback had steadily risen after the report. However, later on, it lost some of its gains as the US stocks reversed from huge losses. Stocks started sharply dipping down on Thursday. It happened because of the investors’ concerns over the recent tech boom, which might be overvalued. According to Bloomberg, the tech stocks’ rally wasn’t supported by the widespread investor sentiment, in the opposite, it was caused by large options trades from one company. The Financial Times claimed that SoftBank bought billions of dollars in tech derivatives ahead of the fall of the stock market. Therefore, traders now try to find out the fair price for stocks.
Let’s have a look at the S&P 500 chart. It has steeply dropped after touching the all-time high at 3 575. The stock index has just broken the key support of 3 400 and keeps falling down. If it manages to break through the next support of 3 350, which it has touched a few times during August, the way to 3 330 will be open and then to 3 315. In the opposite scenario, the move above the high of August 25 at 3 445 will drive the price towards the next resistance of 3 480.
Let’s move on to EUR/USD. The pair is dipping down amid the stronger USD and worries about the upcoming ECB meeting on Thursday, which is interested in the lower euro. The move below the significant support of 1.1800 will push the pair down to the next one at 1.1770. Otherwise, if it jumps above Friday’s high of 1.1860, the doors to 1.1900 will be open.
As for gold, the yellow metal has failed to break out the triangle so far. If it drops below the support of $1 925, it may fall even deeper to the low of August 26 at $1 910. In opposite, the move above $1 950 will be the pivotal point and will drive the pair to $1 970.
Finally, let’s discuss USD/JPY. The pair is edging higher amid the stronger greenback. If it breaks through the high of August 26 at 106.50, it will surge to the next resistance of 106.70. Otherwise, the move below the support of 106.10 will drive the price to the key psychological mark of 106.00.
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