Daily Market Report: January 19, 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 19, 2021

Stronger Greenback and Global Covid Surge Topple Oil

U.S. Stock Market

Last: 30,814

Pivot: 31,215

Review:

U.S. stocks were closed due to Martin Luther King Day.

Technical comment:

The RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 31,215 with targets at 30,620 & 30,350 in extension.

Alternative scenario:

Above 31,215, look for further upside with 31,420 & 31,690 as targets.

Resistance 31,215 31,420 31,690
Support 30,620 30,350 30,160
Stronger Greenback and Global Covid Surge Topple Oil
USD/CAD

Last: 1.2750

Pivot: 1.2775

Review:

USD/CAD fell on Monday, closing at 1.2750.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

Short positions below 1.2775 with targets at 1.2720 & 1.2700 in extension.

Alternative scenario:

Above 1.2775, look for further upside with 1.2800 & 1.2835 as targets.

Resistance 1.2775 1.2800 1.2835
Support 1.2720 1.2700 1.2675
Stronger Greenback and Global Covid Surge Topple Oil
Gold

Last: 1,837.85

Pivot: 1,825

Review:

Gold prices declined on Monday, closing at 1837.85.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 1825.00 with targets at 1845.00 & 1857.00 in extension.

Alternative scenario:

Below 1825.00, look for further downside with 1816.00 & 1810.00 as targets.

Resistance 1,845 1,857 1,864
Support 1,825 1,816 1,810
Stronger Greenback and Global Covid Surge Topple Oil
Oil

Last: 51.97

Pivot: 52.50

Review:

Oil prices dropped early on Monday as a stronger U.S. dollar and many countries still battling rising daily COVID-19 cases weighed on market sentiment at the start of the week.

Technical comment:

As long as the resistance at 52.50 is not surpassed, the risk of a break below 51.75 remains high.

Preference scenario:

Short positions below 52.50 with targets at 51.75 & 51.50 in extension.

Alternative scenario:

Above 52.50, look for further upside with 52.90 & 53.10 as targets.

Resistance 52.50 52.90 53.10
Support 51.75 51.50 51.00
Stronger Greenback and Global Covid Surge Topple Oil
EUR/USD

Last: 1.2077

Pivot: 1.2055

Review:

The EUR/USD dropped, being the single currency likely to be under pressure this week with the ECB meeting, EU summit, and Italy’s political crisis in focus.

Technical comment:

The RSI calls for a rebound.

Preference scenario:

Long positions above 1.2055 with targets at 1.2100 & 1.2115 in extension.

Alternative scenario:

Below 1.2055, look for further downside with 1.2040 & 1.2020 as targets.

Resistance 1.2100 1.2115 1.2130
Support 1.2055 1.2040 1.2020
Stronger Greenback and Global Covid Surge Topple Oil
GBP/USD

Last: 1.3579

Pivot: 1.3555

Review:

The GBP/USD pair fell, closing at 1.3579.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 1.3555 with targets at 1.3600 & 1.3620 in extension.

Alternative scenario:

Below 1.3555, look for further downside with 1.3535 & 1.3520 as targets.

Resistance 1.3600 1.3620 1.3640
Support 1.3555 1.3535 1.3520
Stronger Greenback and Global Covid Surge Topple Oil

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.

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