ZuluTrade Blog

Market Daily Outlook - Buying opportunity or...

Market View | Friday, September 4, 2020 12:53 PM GMT

...or a potentially bearish signal?

Yesterday, the market was really tough, especially with the bullish Investors. All US indices lost 7-days profits as the selling pressure was hard and intense. Amazon fell by 4.6%, Apple slid 8%, Zoom plunged 9.97% and NVIDIA by -9.28%. Probably, this was a profit-taking action as indices were highly overbought and reached extreme levels. Reading the charts, they bounced at their major supports. All three held the 20 EMA while SPX500 and NAS100 respected the lower side of the channels. 

US30 daily

SPX500 daily

NAS100 daily  

CopyTrade with ZuluTrade

EU market “copied” the negative bias and recorded losses though today, they all reversing to the upside. The data is mixed, as French Construction PMI contracts from 49.4 to 46 as well as EU Construction PMI fell to 47.8. The German PMI increased slightly to 48 but the Factory Orders decreased by 8.2%. 

Asia market closed in red as JPN225 lost -1.11%, Shanghai -0.87%, and Kospi -1.15%. China announced that they injected a CNY 100bn in a 7-day reverse repos auction today as they like to provide liquidity in the market. In the meanwhile, South Korea improved its USD surplus to 7.45bn in July.

CopyTrade with ZuluTrade

Heading to the forex market, EURUSD has stalled below the 50 SMA after bouncing at the lower side of the channel. The pair needs to hold this area otherwise the selling pressure may be accelerated. GBPUSD stopped below the 38.2% Fibonacci level. USDCHF is trying to validate the bullish breakout from the falling trendline. As long as it remains above the current zone, there are major probabilities to continue higher.

CopyTrade with ZuluTrade



USDCHF  240m

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on EURUSD, USDCHF, and GBPJPY.


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.