Nasdaq 100 Hits Resistance, EUR/USD Rally Continues While WTI Hovers Above Support

(MENAFN- DailyFX (IG)) Macro news

​The Nikkei 225 broke through the 44,000 level for the first time, climbing as much as 1.2% to 44,185 before easing back slightly. The rally was underpinned by renewed optimism around trade developments and expectations of fresh government stimulus, which together boosted market sentiment.

Investor confidence was further lifted by political shifts in Japan. Following the resignation of Shigeru Ishiba, leadership contender Sanae Takaichi has emerged as a frontrunner. Markets view her as supportive of fiscal expansion and continued monetary easing, policies that are seen as positive for growth and asset prices.

On the trade front, Japan secured a notable breakthrough. According to the country's chief negotiator, US tariffs on Japanese autos will be lowered by 16 September, clearing away uncertainty left after July's agreement. The development is seen as a significant tailwind for Japan's exporters and overall trade outlook.

Technology shares also played a leading role in driving the index higher. Chipmaker Advantest surged more than 7%, while other sector heavyweights such as Screen Holdings , Tokyo Electron , and Sony all advanced, tracking the strength of US tech stocks . Broader Asian equities were similarly buoyed, extending Wall Street's gains as investors priced in a likely September rate cut from the Federal Reserve (Fed), with some even betting on a 50-basis-point move.

​Nasdaq 100 capped by resistance

​The Nasdaq 100's recovery from its early September low has been, at least temporarily, stopped by Friday's 23,860 high.

​If bettered, the August record high at 23,969 may be reached as well.

​Minor support below the 28 August high at 23,741 sits at the late July high at 23,589, both of which may be revisited as long as Friday's high at 23,860 caps.

​Were the late July high at 23,589 to give way, the technical picture would become more bearish with the 21 July high at 23,264 being back in sight, together with the August and current September lows at 23,242-to-22,959.

Nasdaq 100 daily candlestick chart Source: TradingView ​EUR/USD nears late July peak

EUR/USD's advance above its mid-August high at $1.1742 high puts the late July high at $1.1789 on the map, together with the early July peak at $1.1830.

​Potential slips may find support around the mid-to-late August highs at $1.1743-to-$1.1730.

EUR/USD daily candlestick chart Source: TradingView ​WTI hovers above support

WTI crude oil has bounced off Friday's low at $61.45 per barrel, made right at the 18 August low which acted as support, but seems to have run out of steam at Monday's $63.34 high.

​While trading below it, immediate downside pressure should be maintained. A fall through the $61.45 mark could trigger a swift sell-off to the $60.11-to-$59.84 support zone, made up of the mid-April, mid-May and late May lows.

​A rise above Monday's $63.34 high would eye the 24 June low at $64.03 and the mid-August high at $64.15 which may act as resistance.

WTI daily candlestick chart Source: TradingView Important to know

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