Daily Market Report: January 21, 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 21, 2021

Stocks Continue to Rally While Pressure on the USD Returns

U.S. Stock Market

Last: 30,930

Pivot: 30,620

Review:

U.S. stocks pushed higher on Wednesday, continuing their run higher as gains in the Consumer Services, Technology and Consumer Goods sectors led shares onwards. At the close in NYSE, the Dow Jones Industrial Average rose 0.77% to hit a new all-time high, while the S&P 500 index gained 1.48%, and the NASDAQ Composite index popped 2.12% to the upside.

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 Continue to Rally While Pressure on the USD Returns
USD/CAD

Last: 1.2698

Pivot: 1.2930

Review:

USD/CAD continued it descent on Wednesday as Joe Biden’s Presidency was confirmed, closing lower at 1.2698.

Technical comment:

As long as the resistance at 1.2930 is not surpassed, the risk of the break below 1.2620 remains high.

Preference scenario:

Short positions below 1.2930 with targets at 1.2620 & 1.2460 in extension.

Alternative scenario:

Above 1.2930, look for further upside with 1.3050 & 1.3170 as targets.

Resistance 1.268 1.272 1.276
Support 1.257 1.253 1.251
Stocks Continue to Rally While Pressure on the USD Returns
Gold

Last: 1,868.67

Pivot: 1,854.00

Review:

Gold prices soldiered on to hit near two-week highs on Wednesday as significant stimulus plans anticipated from the Joe Biden administration become closer to reality – part of a broader commodities rally spurred by the inauguration of the 46th U.S. president.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 1,854.00 with targets at 1,877.00 & 1,894.00 in extension.

Alternative scenario:

Below 1,854.00, look for further downside with 1,840.00 & 1,832.00 as targets.

Resistance 1,877 1,894 1,905
Support 1,854 1,840 1,832
Stocks Continue to Rally While Pressure on the USD Returns
Oil

Last: 53.18

Pivot: 52.75

Review:

U.S. oil stockpiles unexpectedly increased last week for the first time since Dec. 22, denting previous optimism that supplies would continue to tighten amid sluggish pandemic-impacted demand. U.S. crude inventories rose by 2.56 million barrels last week, according to an estimate released Tuesday by the American Petroleum Institute, after a draw of 5.82 million barrels the previous week. Gasoline inventories rose by 1.13 million barrels and distillate stocks increased by 816,000 barrels over the seven days.

Technical comment:

The RSI is mixed with a bearish bias.

Preference scenario:

Short positions below 53.35 with targets at 52.75 & 52.40 in extension.

Alternative scenario:

Above 53.35, look for further upside with 53.80 & 54.15 as targets.

Resistance 53.35 53.8 54.15
Support 52.75 52.4 52.05
Stocks Continue to Rally While Pressure on the USD Returns
EUR/USD

Last: 1.2129

Pivot: 1.2105

Review:

The EUR/USD fell slightly 0.19% to $1.2104, after hitting a session high of $1.2158 and recovering earlier weakness from a low of $1.2075. The European Central is expected keep interest rates and the pace of bond purchases unchanged on Thursday.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.2105 with targets at 1.2140 & 1.2160 in extension.

Alternative scenario:

Below 1.2105 look for further downside with 1.2090 & 1.2075 as targets.

Resistance 1.214 1.216 1.218
Support 1.2105 1.209 1.2075
Stocks Continue to Rally While Pressure on the USD Returns
GBP/USD

Last: 1.3681

Pivot: 1.3650

Review:

The GBP/USD climbed 0.3% to 1.3670. General USD weakness continues, supporting most currencies, including the GBP.

Technical comment:

The RSI calls for a rebound.

Preference scenario:

Long positions above 1.3650 with targets at 1.3700 & 1.3720 in extension.

Alternative scenario:

Below 1.3650, look for further downside with 1.3620 & 1.3600 as targets.

Resistance 1.37 1.372 1.3745
Support 1.365 1.362 1.36
Stocks Continue to Rally While Pressure on the USD Returns

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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