Daily Market Report: January 18, 2021

Review:

U.S. stocks were lower after the close on Friday, as losses in the Oil & Gas, Basic Materials and Industrials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average lost 0.30%, while the S&P 500 index lost 0.44%, and the NASDAQ Composite index fell 0.64%.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 12,170.00 with targets at 13,100.00 & 13,800.00 in extension.

Alternative scenario:

Below 12,170.00 look for further downside with 11,500.00 & 10,960.00 as targets.

Resistance	13,100	13,800	14,000
Support	12,170	11,500	10,960

Review:

USD/CAD rose on Friday, closing at 1.2758.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 1.2700 with targets at 1.2790 & 1.2835 in extension.

Alternative scenario:

Below 1.2700, look for further downside with 1.2675 & 1.2650 as targets.

Resistance	1.279	1.2835	1.2875
Support	1.27	1.2675	1.265

Review:

Gold prices fell on Friday, but head for modest weekly gain, even as U.S. dollar firms.

Technical comment:

A break below 1802.00 would trigger a drop towards 1788.00.

Preference scenario:

Short positions below 1833.00 with targets at 1802.00 & 1788.00 in extension.

Alternative scenario:

Above 1833.00, look for further upside with 1846.00 & 1857.00 as targets.

Resistance	1,833	1,846	1,857
Support	1,802	1,788	1,775

Review:

Oil prices fell the most in a month on Friday, tumbling more than 2%, after concerns over Covid-19 lockdowns in top crude destination China hit a market that resisted for weeks worries about piling fuel stockpiles at home.

Technical comment:

The RSI is mixed to bearish.

Preference scenario:

Short positions below 52.70 with targets at 51.80 & 51.50 in extension.

Alternative scenario:

Above 52.70, look for further upside with 53.10 & 53.50 as targets.

Resistance	52.7	53.1	53.5
Support	51.8	51.5	51

Review:

The EUR/USD fell, only marginally dipping despite the political turmoil in Italy, the euro-zone’s third largest economy, with the ruling administration under pressure after a small party within the coalition withdrawing its support.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 1.2110 with targets at 1.2040 & 1.2020 in extension.

Alternative scenario:

Above 1.2110, look for further upside with 1.2130 & 1.2150 as targets.

Resistance	1.211	1.213	1.215
Support	1.204	1.202	1.2

Review:

The GBP/USD fell, after data showed Britain's economy shrank by 2.6% in November, the first monthly fall in output since April and the country’s initial Covid lockdown. The economy is now 8.5% smaller than it was before the start of the coronavirus pandemic in February.

Technical comment:

The RSI calls for a new downleg.

Preference scenario:

Short positions below 1.3625 with targets at 1.3550 & 1.3530 in extension.

Alternative scenario:

Above 1.3625, look for further upside with 1.3660 & 1.3700 as targets.

Resistance	1.3625	1.366	1.37
Support	1.355	1.353	1.3505