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Dow Jones and major US indices drop from key levels – Technical Outlook
Despite a solid open and decent Jobless Claims data, equity markets are pulling back after a post-NFP rally that now looks shaky. With September cut odds surging and tariffs back in play, investors face conflicting signals. We step back to analyze higher timeframes and assess key technical levels in the Dow, S&P 500, and Nasdaq to navigate what lies ahead.
by Elior Manier
Why is the Pound rising after this morning's Bank of England rate cut?
The Bank of England surprised markets despite delivering a widely expected 25 bps rate cut to 4.00%. A rare split vote (5-4) and hawkish commentary from Governor Bailey sparked a rebound in the Pound, as traders shifted focus to the central bank's future path. We analyze GBP/USD technicals across multiple timeframes to assess the current momentum and outlook.
by Elior Manier
The US Dollar tries to find stable ground
Since Friday’s NFP miss, the US Dollar has dropped sharply, with the DXY falling from 100.00 to the high 97.00s as Fed cut expectations rise. Equities are surging on the back of this move, with the DAX up 1.7% and Nasdaq futures nearing record highs. Let's spot if USD weakness is poised to continue.
by Elior Manier
Nasdaq 100 Technical: Eyeing a new fresh all-time high, supported by momentum and flattening US Treasury yield curve
AI optimism continues to fuel risk-on sentiment, with U.S. equities rallying after news of a potential $500B valuation for OpenAI. The Nasdaq 100 extended gains, supported by momentum indicators and a flatter U.S. yield curve. Price action suggests a medium-term bullish breakout, with key support at 22,945 and targets at 23,820 and 24,220. A break below 22,945 support may signal a deeper correction toward 22,670.
by Kelvin Wong
EUR/GBP Technical: Bullish impulsive upleg intact (EUR outperformance over GBP) as BoE looms
The Bank of England is expected to cut interest rates by 25 bps to 4%, its lowest in over two years, amid persistent inflation concerns. UK core inflation rose to 3.7% y/y in June, well above the 2% target. Ahead of the BoE decision, EUR/GBP appears poised for a potential bullish breakout, supported by firm technical momentum and narrowing in the discount of German-UK bond yield spreads, with key resistances at 0.8740 and 0.8800, followed by 0.8860 next.
by Kelvin Wong
EUR/USD Technical: Poised for a minor bullish breakout in euro strength
The euro staged a sharp rebound against the US dollar on 1 August, gaining 1.5% after weaker-than-expected US jobs data halted a week-long decline. Since 4 August, EUR/USD has traded in a narrow range, as markets digest rising stagflation risks and await President Trump’s Fed nomination. Technical indicators suggest a potential bullish breakout, with support at 1.1520 and resistance at 1.1600 and 1.1680/1705.
by Kelvin Wong
Nikkei 225 Technical: Start of new bullish impulsive up move as Japan’s wages tick higher
The Japan 225 CFD Index has declined by -5.5% from its 24 July high of 42,084 to a low of 39,980, but signs point to a potential bullish reversal. Rising nominal wages and anticipated positive real wage growth could boost consumer confidence and support Japanese equities. Technically, price action has rebounded above the 20-day moving average, while momentum indicators suggest short-term upside potential above the key 40,130 support level.
by Kelvin Wong
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