Hey Valutraders! Did you see the big jump in the NASDAQ?
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I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at GBPUSD, Natural Gas (NatGas), Gold (XAUUSD), the USD Index, the Russell 2000 (RUS2000), and the NASDAQ (US100).
Last Thursday was what we call a “Risk On!” Day with investors rushing into the stock markets.
Price action on the NASDAQ, for example, broke the upper trend line but has a long way to go before it reaches the 200-day moving average.
All the other US Indices like the S&P 500, the Dow Jones Industrial Average, and the Russell 2000 showed similar levels of investment.
Of course, when investors buy US stocks, they need to convert their cash which caused a fall in the USD Index.
Therefore, we see a huge fall in the value of the USD and it shows on the USD Index.
Price Action opened with a gap this morning and it is heading down again.
Speaking of gaps; the gap we reported last week on Natural Gas has been filled.
Price action fell to the lower trend line and opened again with a gap.
Analysts feel that price could fall further as a mild winter has been predicted for Northern Europe.
In last week’s Market Blast Technicals we noted that price action on Gold had bounced off the upper trend line.
However, with the fall of the USD, the price of Gold rose into the high 1700s.
In fact, we had every major pair showing USD weakness.
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