Daily Market Report: January 24, 2022

Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.

January 24, 2022

Gold slips; Oil surges

US Stock Market

Last: 14,510.77

Pivot: 15,350

Review:

US stocks were lower after the close on Friday, as losses in the consumer services, basic materials and technology sectors led shares lower. At the close in the NYSE, the Dow Jones Industrial Average declined 1.30% to hit a new 1-month low, while the S&P 500 index fell 1.89%, and the NASDAQ Composite index declined 2.72%.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

For short positions below 15350.00, look for the next targets at 14390.00 and 13800.00 in extension.

Alternative scenario:

In the case of a price rise above 15350.00, look for a further upside with 16000.00 and 16760.00 as targets.

Resistance 15,350 16,000 16,760
Support 14,390 13,800 12,970
Gold slips; Oil surges
USD/CAD

Last: 1.2565

Pivot: 1.254

Review:

The Bank of Canada is expected to hike the base rate on Wednesday before the Fed.

Technical comment:

The RSI has just landed on its neutrality area at 50% and is turning up.

Preference scenario:

For long positions above 1.2540, with fresh targets at 1.2590 and 1.2610 in extension.

Alternative scenario:

Should the price decrease below 1.2540, look for a further downside with 1.2520 and 1.2500 as targets.

Resistance 1.259 1.261 1.263
Support 1.254 1.252 1.25
Gold slips; Oil surges
Gold

Last: 1,836

Pivot: 1,843

Review:

Gold is being underpinned because investors are betting the US economy may be in worse shape than the Fed thinks.

Technical comment:

As long as 1843.00 is resistance, look for choppy price action with a bearish bias.

Preference scenario:

A sell opportunity could emerge if the price dips below 1843.00, with targets at 1827.00 and 1822.00 in extension.

Alternative scenario:

If there is a price climb above 1843.00, look for a further upside with 1848.00 and 1853.00 as targets.

Resistance 1,843 1,848 1,853
Support 1,827 1,822 1,817
Gold slips; Oil surges
Oil

Last: 85.7

Pivot: 84.4

Review:

Crude prices notched a fifth straight weekly win after a preliminary plunge that was alleviated before the close, as longs bought the dip.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

In the event of an upside breakout above 84.40, check out new targets at 86.20 and 87.10 in extension.

Alternative scenario:

Should there be a price slide below 84.40, look for a further downside with 83.45 and 82.80 as targets.

Resistance 86.2 87.1 87.9
Support 84.4 83.45 82.8
Gold slips; Oil surges
EUR/USD

Last: 1.134

Pivot: 1.132

Review:

EUR/USD set for a limited rise on Fed dovishness, could prove a selling opportunity

Technical comment:

Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

For long positions above 1.1320, check out targets at 1.1360 and 1.1375 in extension.

Alternative scenario:

If the price dips below 1.1320, look for a further downside with 1.1300 and 1.1285 as targets.

Resistance 1.136 1.1375 1.139
Support 1.132 1.13 1.1285
Gold slips; Oil surges
GBP/USD

Last: 1.3553

Pivot: 1.358

Review:

GBP/USD broke out to fresh weekly lows on Friday and continued to press lower as the US trading session got underway.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

If the price drops below 1.3580, look for new targets at 1.3530 and 1.3510 in extension.

Alternative scenario:

Should the rate surpass 1.3580, look for a further upside with 1.3600 and 1.3620 as targets.

Resistance 1.358 1.36 1.362
Support 1.353 1.351 1.349
Gold slips; Oil surges

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