The US stock market failed to sustain momentum despite NFP data showing positive growth. The NFP data showed a 33% increase, with 4.8 million new jobs for June compared to 2.7 million in May. The unemployment rate also declined to 11.1% from 13.3% recorded in May. Covid-19 continues to be a thorn in the flesh for the US30 bullish movement; an hour after the NFP data was announced, the Covid-19 daily report showed that infections in the United States continue to rise. This is causing sentiment to change back and forth.
The US30 jumped to its highest overnight price after the NFP announcement to reach 26,204 points, the highest in 6 days. But it dropped again after the US Covid-19 daily data was released. It closed at 25,678 for Thursday and the week. The 200MA D1 level continued to be strong and not broken at the close for the consecutive 14th day. The next resistance level is at the high of 27,613 points recorded in June. The nearest support level is at 25,163 points which is the MA50 D1 level followed by the lowest support level of June at 22,743 points. The MA50 and MA200 curves indicate that the Dow Jones movement is expected to extend for a period of time until it penetrates one of these MA lines. Any break could allow rapid movement according to the break.
Learn Free Forex Trading Every Monday and Tuesday
Tunku Ishak Al-Irsyad
Market Analyst
HF Educational Office – Malaysia
Disclaimer: The material used in this presentation is for general marketing use only. It does not involve any investment studies. It should not be considered investment advice, investment advice or financial instrument buying advice. Please note that information about past data cannot be considered as security for future data. You also acknowledge that any investment in a secured product carries a high risk to your capital. Please make sure that you fully understand the risks involved and that we are not liable for any loss or profit from investments made based on the information in this presentation. The information contained in this presentation may not be published or disseminated without our written permission.
