US30 Hurts from Renewed Covid Fears
US30
The index posted its worst day of the year on Friday, wiping out more than a thousand pips, as news of the Omicron variant wreaked havoc in the markets. Sentiment normalized on Monday, allowing US30 to register a rebound, but today it takes another nosedive.
The catalyst that fuels today's new risk-off waves, seems to be comments by Moderna's CEO Stéphane Bancel on Financial Times about lower efficacy of vaccines against the new Covid-19 variant.
US30 erases most of its "October Low/November Record High" advance, breaching the lower part of the Daily Ichimoku Cloud and posting new November Lows. It is now exposed to the broader 34,251-34,080 area, which includes the 76.4% Fibonacci of the aforementioned advance and the 200Day EMA. A break below this level will open the door for a larger decline towards 33,534.
On the other hand, the index reacts around 34,700 and from a technical prospective, a return back above 35,000-52 is likely, although a significant improvement in sentiment will be required for moves towards and past 35,304.
Volatility has increased significantly in the course of the last few days and has led to outsized moves, as fear and uncertainty around the Omicron variant has rattled markets. As such, caution is warranted and the technical approach is in the background.
Past Performance: Past Performance is not an indicator of future results.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.