USA30 – Daily Chart


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By: Ahura Chalki

Last week ended with a huge surprise in US job data. While for 10 weeks in a row, starting from March, initial Jobless claims were above 2,000K, for the first time it fell under this level and next day market has been shocked by NFP data, to grow 2,509K, while the expectation was about losing 9,000K more. In the privet section also it was showing a new 3,098K, while the expectation was about losing 7,500K.

Sometimes, bad things can turn to positive data. Last week the USA was the scene of mass protests to the killing of a black citizen by the police. Protest by coming outside, almost all over the country, violated quarantine laws and restrictions, which can help the business in faster reopening and it is one of the reasons that many analysts hopping on continuing the more positive data in the US employment sector, for coming weeks.

The results of the mentioned data ended with the positive reaction of investors in the stock markets. Dow DJIA, with +3.15% ended the week 6.8% higher, the S&P 500 SPX, with gaining +2.62% raised 4.9%, while the Nasdaq advanced 3.3% and the Nasdaq-100 rose 2.8%.

Today, in the future market, USA30 continued the trend, gaining +155 points, raised 0.54%.

Key market drivers in the week ahead

For the week ahead, the market will pay attention firstly to the Wednesday’s FED monetary policy meeting, where FOMC members have to decide about future Fed policy, especially investors would like to see their opinion about negative rates and outlook for the shape of the recovery.

On the other side, the Market also needs more confirmation and Thursday’s Initial Jobless claim, which can show the latest changes in the employment sector, will be matter. And finally, the reopening process also can change the market sentiment and we have to follow the news.

Technical overview – Daily Chart

Friday, for the first time after 24. Feb crash, Dowjons could raise above 200 DMA, sitting at 26,300, plying as psychological level, too. Asset currently trading at 27,270, above 78.6% Fibonacci from its latest free fall of 29,400 to 18,000. Next resistance sitting at 28,250 (88.6% Fibo and Feb 25 high), while in the flip side, 200 DMA at 26,300 is the first support and then 25,100 (61.8%), below this level, 23,900 (50 DMA and 50% of Fibonacci) is the next support.

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