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. 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.
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.
USD/CAD continued it descent on Wednesday as Joe Biden’s Presidency was confirmed, closing lower at 1.2698.
As long as the resistance at 1.2930 is not surpassed, the risk of the break below 1.2620 remains high.
Short positions below 1.2930 with targets at 1.2620 & 1.2460 in extension.
Above 1.2930, look for further upside with 1.3050 & 1.3170 as targets.
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.
The RSI is mixed with a bullish bias.
Long positions above 1,854.00 with targets at 1,877.00 & 1,894.00 in extension.
Below 1,854.00, look for further downside with 1,840.00 & 1,832.00 as targets.
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.
The RSI is mixed with a bearish bias.
Short positions below 53.35 with targets at 52.75 & 52.40 in extension.
Above 53.35, look for further upside with 53.80 & 54.15 as targets.
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.
The RSI is bullish and calls for further upside.
Long positions above 1.2105 with targets at 1.2140 & 1.2160 in extension.
Below 1.2105 look for further downside with 1.2090 & 1.2075 as targets.
The GBP/USD climbed 0.3% to 1.3670. General USD weakness continues, supporting most currencies, including the GBP.
The RSI calls for a rebound.
Long positions above 1.3650 with targets at 1.3700 & 1.3720 in extension.
Below 1.3650, look for further downside with 1.3620 & 1.3600 as targets.
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.
Trade with a Licenced Broker
Licenced by CySEC
Our EU client portal, operated by CrowdTech Ltd. under CySEC Regulation, license number 202/13.
Licenced by ASIC
Our Australian client portal, operated by Sirius Financial Markets Pty Ltd. under ASIC regulation, license number 439907.
Our global client portal, operated by ST Services Ltd.