Daily Market Report: January 12, 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 12, 2021

Euro, Pound Drop as Greenback Recovers from Last Week’s Losses

U.S. Stock Market

Last: 3,799

Pivot: 3,826.00

Review:

U.S. stock market dropped after the close on Monday, as losses in the Consumer Goods, Technology and Utilities sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.27%, while the S&P 500 index declined 0.66%, and the NASDAQ Composite index fell 1.36%.

Technical comment:

The S&P 500 RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 3826.00 with targets at 3770.00 & 3737.00 in extension.

Alternative scenario:

Above 3826.00, look for further upside with 3866.00 & 3900.00 as targets.

Resistance 3,826 3,866 3,900
Support 3,770 3,737 3,663
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses
USD/CAD

Last: 1.2773

Pivot: 1.2740

Review:

The Canadian dollar rose to close at 1.2772.

Technical comment:

Long positions above 1.2740 with targets at 1.2810 & 1.2835 in extension.

Preference scenario:

Long positions above 1.2740 with targets at 1.2810 & 1.2835 in extension.

Alternative scenario:

Below 1.2740, look for further downside with 1.2710 & 1.2680 as targets.

Resistance 1.281 1.2835 1.286
Support 1.274 1.271 1.268
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses
Gold

Last: 1,843.1

Pivot: 1,856.00

Review:

Gold prices tiptoed higher on Monday, recovering a quarter of what was lost in last week’s manic selling, which came despite a flood of imminent U.S. stimulus money promised by the incoming Biden administration. Both futures and spot prices of gold, which reflect real-time trades in bullion, settled up 0.8% in a partial regain of the 4% they lost Friday.

Technical comment:

The RSI is mixed.

Preference scenario:

Short positions below 1856.00 with targets at 1816.00 & 1800.00 in extension.

Alternative scenario:

Above 1856.00, look for further upside with 1877.00 & 1894.00 as targets.

Resistance 1,856 1,877 1,894
Support 1,816 1,800 1,775
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses
Oil

Last: 52.31

Pivot: 51.50

Review:

Crude oil prices were broadly lower on Monday in mid-morning trade in New York, albeit off their intraday lows, as the near-term challenges of the pandemic and doubts about the speed and scale of U.S. fiscal stimulus tempered the optimism that drove last week's rally.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 51.50 with targets at 52.75 & 53.20 in extension.

Alternative scenario:

Below 51.50, look for further downside with 50.90 & 50.45 as targets.

Resistance 52.75 53.2 53.65
Support 51.5 50.9 50.45
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses
EUR/USD

Last: 1.2151

Pivot: 1.2195

Review:

The Bears may push the pair to the support level of $1.21 provided they maintain their pressure and in case the level does not hold; the price may be exposed to the support levels of $1.19 and $1.18. The bullish trend may continue and face the resistance levels of $1.22, $1.27 and $1.31 provided $1.21 level rejects the down trend.

Technical comment:

As long as the resistance at 1.2195 is not surpassed, the risk of the break below 1.2130 remains high.

Preference scenario:

Short positions below 1.2195 with targets at 1.2130 & 1.2100 in extension.

Alternative scenario:

Above 1.2195, look for further upside with 1.2225 & 1.2255 as targets.

Resistance 1.2195 1.2225 1.2255
Support 1.213 1.21 1.208
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses
GBP/USD

Last: 1.3518

Pivot: 1.3490

Review:

GBP/USD dropped 0.6% to land on 1.3487.

Technical comment:

The break above 1.3490 is a positive signal that has opened a path to 1.3540.

Preference scenario:

Long positions above 1.3490 with targets at 1.3540 & 1.3570 in extension.

Alternative scenario:

Below 1.3490, look for further downside with 1.3450 & 1.3425 as targets.

Resistance 1.354 1.357 1.36
Support 1.349 1.345 1.3425
Euro, Pound Drop as Greenback Recovers from Last Week’s Losses

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