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Nikola -50% in last week!!

EUR/USD –Daily Candlesticks
Source: GKFX / MT4 (September 27, 2020)

EUR/USD has broken below critical support zones, which could act as resistance in any bounce, offering possible entry points to the short side if the current down-move were to continue towards previous resistance at 1.15.
 

TAKEAWAYS


•    US dollar regains haven status amid market sell-off
•    Tech stocks rally on Friday limits the weekly rout
•    Gold has worst weekly drop since March
•    Nikola reportedly bought trucks designs from a 3rd party
•    DAY AHEAD: Japan CPI
 

GURU WISDOM


“Look at the sparrows; they do not know what they will do in the next moment. Let us literally live from moment to moment.”– Mahatma Gandhi
 

MARKETS


The US dollar is staging a recovery after a multi-month losing streak thanks to better economic data in the US and rising virus cases in Europe, which has weighed on the euro, while Brexit risks – as ever- have hit the pound. 

US stock indices fell to prices last seen at the end of July in a rout pulled down by technology stocks, which subsided somewhat on Friday. European markets were in the red for the week but remain inside ranges that have been in place for the past 2 months.

It has been a rough week for precious metals. A sharp rebound in the dollar has meant a steep sell-off in metals. Gold had its worst week since March. Oil prices slipped for the third week as rising virus cases weighed on hopes for a fuel demand recovery.
 

Dollar renaissance


The US dollar made its move last week. The question of course is whether it is sustainable. The easiest explanation is that it is because of a risk-off mood in markets and the dollar has become a preferred haven.  Moves in the dollar almost single-handily explain the weakness in gold- which has lost all aspects as a short-term haven asset.  If the risk-off mood continues, it looks tricky for gold which has become an asset that responds best to hopes of new monetary stimulus – especially from the Fed. 
 

Nikola


We have been discussing Nikola shares on both the way up and the way down. The EV truck company has now admitted it bought its design for its truck from a third party. That comes after revelations that many aspects of its technology have been outsourced, raising questions what the company is actually bringing to the table as far as value. 

More details are yet to be announced but this looks like a shocking deal for GM and both GM and Nikola shares will likely remain uncer pressure while such questions remain unanswered- espeically without the founder employed. 
 

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