Daily Market Report: January 20, 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 20, 2021

Stocks Rise as Biden Inauguration Approaches

U.S. Stock Market

Last: 30,930

Pivot: 30

Review:

U.S. stocks nudged higher after the close on Tuesday, as gains in the Oil & Gas, Technology and Healthcare sectors led shares onwards. At the close in NYSE, the Dow Jones Industrial Average rose 0.41%, while the S&P 500 index added 0.86%, and the NASDAQ Composite index put on 1.57% to its value.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 30,620 with targets at 31,215 & 31,420 in extension.

Alternative scenario:

Below 30,620, look for further downside with 30,350 & 30,150 as targets.

Resistance 31,215 31,420 31,690
Support 30,620 30,350 30,150
Stocks Rise as Biden Inauguration Approaches
USD/CAD

Last: 1.2722

Pivot: 1.2760

Review:

Dovish tones from the new administration continue to put pressure on the USD. The USD/CAD fell again on Tuesday, closing at 1.2722.

Technical comment:

The RSI advocates for further declines.

Preference scenario:

Short positions below 1.2760 with targets at 1.2690 & 1.2660 in extension.

Alternative scenario:

Above 1.2760, look for further upside with 1.2780 & 1.2800 as targets.

Resistance 1.276 1.278 1.28
Support 1.269 1.266 1.262
Stocks Rise as Biden Inauguration Approaches
Gold

Last: 1,841.2

Pivot: 1.000

Review:

Gold prices gained another leg higher on Tuesday, reacting positively to U.S. Treasury Secretary nominee Janet Yellen’s indicative plans to fight the Coronavirus-induced economic crisis with significant government spending.

Technical comment:

The immediate trend remains up, but the momentum is weak.

Preference scenario:

Long positions above 1832.00 with targets at 1846.00 & 1857.00 in extension.

Alternative scenario:

Below 1832.00, look for further downside with 1823.00 & 1816.00 as targets.

Resistance 1,846 1,857 1,865
Support 1,832 1,823 1,816
Stocks Rise as Biden Inauguration Approaches
Oil

Last: 53.18

Pivot: 52.75

Review:

Crude oil prices jumped on Tuesday, with renewed hopes for U.S. demand under the influence of loose fiscal and monetary policy keeping prices well supported. Optimistic messaging from industry officials also helped, even though one influential think-tank revised down its outlook for global consumption this year.

Technical comment:

The climbing RSI advocates for further upside.

Preference scenario:

Long positions above 52.75 with targets at 53.55 & 53.85 in extension.

Alternative scenario:

Below 52.75, look for further downside with 52.40 & 52.05 as targets.

Resistance 53.55 53.85 54.15
Support 52.75 52.4 52.05
Stocks Rise as Biden Inauguration Approaches
EUR/USD

Last: 1.2136

Pivot: 1.2110

Review:

The EUR/USD rose, continuing the uptrend formed over the last few days, closing at 1.2136.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 1.2110 with targets at 1.2160 & 1.2180 in extension.

Alternative scenario:

Below 1.2110, look for further downside with 1.2090 & 1.2070 as targets.

Resistance 1.216 1.218 1.22
Support 1.211 1.209 1.207
Stocks Rise as Biden Inauguration Approaches
GBP/USD

Last: 1.3579

Pivot: 1.3555

Review:

The GBP/USD rose, closing strongly at 1.3579. A weak USD across the board continues to support the uptrend in European currencies, including the GBP.

Technical comment:

The immediate trend remains up and the momentum is strong.

Preference scenario:

Long positions above 1.3600 with targets at 1.3670 & 1.3700 in extension.

Alternative scenario:

Below 1.3600, look for further downside with 1.3580 & 1.3555 as targets.

Resistance 1.367 1.37 1.373
Support 1.36 1.358 1.3555
Stocks Rise as Biden Inauguration Approaches

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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