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. 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.
The RSI is mixed to bullish.
Long positions above 30,620 with targets at 31,215 & 31,420 in extension.
Below 30,620, look for further downside with 30,350 & 30,150 as targets.
Dovish tones from the new administration continue to put pressure on the USD. The USD/CAD fell again on Tuesday, closing at 1.2722.
The RSI advocates for further declines.
Short positions below 1.2760 with targets at 1.2690 & 1.2660 in extension.
Above 1.2760, look for further upside with 1.2780 & 1.2800 as targets.
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.
The immediate trend remains up, but the momentum is weak.
Long positions above 1832.00 with targets at 1846.00 & 1857.00 in extension.
Below 1832.00, look for further downside with 1823.00 & 1816.00 as targets.
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.
The climbing RSI advocates for further upside.
Long positions above 52.75 with targets at 53.55 & 53.85 in extension.
Below 52.75, look for further downside with 52.40 & 52.05 as targets.
The EUR/USD rose, continuing the uptrend formed over the last few days, closing at 1.2136.
The RSI is bullish and calls for further advance.
Long positions above 1.2110 with targets at 1.2160 & 1.2180 in extension.
Below 1.2110, look for further downside with 1.2090 & 1.2070 as targets.
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.
The immediate trend remains up and the momentum is strong.
Long positions above 1.3600 with targets at 1.3670 & 1.3700 in extension.
Below 1.3600, look for further downside with 1.3580 & 1.3555 as targets.
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