Morning Insights 11th January

Simon Alagbe

Analyst


Instrument: US 30 (Dow Jones Industrial Average)

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 30742 with take profit at 30552

Bullish Preference: Buy position is envisaged if price trades above 30886 with take profit at 31015

Fundamentals:

No major economic data with bearing on the index

Comment:  A net loss of jobs was recorded in the US according to data released by the Bureau of Labor Statistics on Friday, revealing the damaging effect of the novel virus on the economy. The damaging effect of the lockdown was more pronounced in the hospitality sector with over 372,000 job loss. The data pulled the index down, but the impact was short-lived as market participants look forward to more stimulus from the incoming administration. 



Instrument: Oil

Technical Analysis:

Bullish Preference: Buy position is envisaged if price trades above 55.35 with take profit at 55.98

Bearish Preference: Sell position is envisaged if price trades below 54.52 with take profit at 54.04.

Fundamentals:

No Fundamentals

Comments: Technically Oil has seen a rebounding on its price and the 50 EMA has served as a support for price, at the moment prices are close to the 50 EMA and we expect a rebound in prices, so for today we expect oil prices to rise.



Instrument: GBPUSD

Technical Analysis:

Bullish Preference: Buy position is envisaged if price trades above 1.35155 with take profit at 1.35546

Bearish Preference: Sell position is envisaged if price trades below 1.34728 with take profit at 1.34312.

Fundamentals:

No Fundamentals

Comments: The buck had some strength last week Friday as this could be attributed to data's that favoured the USD. We saw average hourly earnings m/m increase from 0.2% to 0.8%, also the unemployment rate dropping to 6.7%. This report shows that the U.S recovery is in place and the dollar economy is on its way to a full recovery.




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