Daily Market Report: January 8, 2021
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 8, 2021
Yellow Metal Back in Play Despite Dollar Bounce
U.S. stock market finished higher after the close on Thursday, as gains in the Technology, Oil & Gas and Consumer Goods sectors led shares up. The Dow Jones rose by 0.69 %, the S&P 500 gained 1.48% and the NASDAQ added 2.56% to its value.
The Dow Jones RSI is mixed to bullish.
Long positions above 30,690 with targets at 31,300 & 31,690 in extension.
Below 30,690, look for further downside with 30,480 & 29,880 as targets.
The USD/JPY pair jumped from a fresh multi-month low of 102.58 to 103.44, rallying alongside Wall Street, but mostly supported by US Treasury yields. The yield on the benchmark 10-year note jumped to 1.05%, above 1.0% for the first time since March. Democrats victory in Georgia fueled risk-appetite as upcoming US President Joe Biden’s party will dominate both chambers.
The RSI calls for a new upleg.
Long positions above 103.45 with targets at 103.95 & 104.25 in extension.
Below 103.45, look for further downside with 103.25 & 103.05 as targets.
Gold prices rose on Thursday as investors began making a beeline for the yellow metal despite a rebound in the dollar, as the win of the U.S. Senate by President-elect Joe Biden’s Democratic Party opened the path for stimulus that would benefit gold.
Intraday technical indicators are mixed.
Short positions below 1928.00 with targets at 1900.00 & 1890.00 in extension.
Above 1928.00, look for further upside with 1935.00 & 1946.00 as targets.
Oil headed for a ninth weekly gain in 10 as Saudi Arabia’s unilateral output cut eased over-supply fears and a Democratic sweep in the U.S. paved the way for more stimulus spending.
A support base at 50.40 has formed and has allowed for a temporary stabilisation.
Long positions above 50.40 with targets at 51.30 & 51.70 in extension.
Below 50.40, look for further downside with 50.00 & 49.50 as targets.
EUR/USD is consolidating just to the north of the 1.2250 mark after dropping about 0.5% or roughly 60 pips on the day as a result of a resurgent US dollar. The dollar reaction to the Democrat’s Georgia election victories earlier in the week, which handed them control of Congress, has been on balance positive thus far.
As long as 1.2280 is resistance, the pair is likely to decline to 1.2210.
Short positions below 1.2280 with targets at 1.2210 & 1.2180 in extension.
Above 1.2280, look for further upside with 1.2305 & 1.2325 as targets.
Cable has not seen much of a reaction in recent trade to concerning news that Congress had been stormed by a pro-Trump mob.
The RSI calls for a new downleg.
Short positions below 1.3580 with targets at 1.3530 & 1.3500 in extension.
Above 1.3580, look for further upside with 1.3610 & 1.3635 as targets.
Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of Trade360, a third party or otherwise.
Trade with a Licenced Broker
Licenced by CySEC
Our EU client portal, operated by CrowdTech Ltd. under CySEC Regulation, license number 202/13.
Licenced by ASIC
Our Australian client portal, operated by Sirius Financial Markets Pty Ltd. under ASIC regulation, license number 439907.
Our global client portal, operated by ST Services Ltd.