Daily Market Report: January 25, 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 25, 2021

Equities Brace for Earnings as Oil Retreats

U.S. Stock Market

Last: 3,321.75

Pivot: 3,830

Review:

The Dow slipped on Friday, led by Tech-leaders Intel and IBM. Weakness in energy stocks also contributed as another surprise increase in U.S. weekly crude inventories pressured oil prices. The Dow Jones Industrial Average fell 0.34%, or 105 points. The S&P 500 was down 0.34%, while the Nasdaq Composite remained steady with a modest 0.03% decline.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 3830.00 with targets at 3848.00 & 3860.00 in extension.

Alternative scenario:

Below 3830.00, look for further downside with 3813.00 & 3800.00 as targets.

Resistance 3,841 3,848 3,860
Support 3,830 3,813 3,800
Equities Brace for Earnings as Oil Retreats
USD/JPY

Last: 103.78

Pivot: 103.60

Review:

Overall movement in the USD/JPY pair was nil with the 103.81 open on Monday nearly matched by Friday's close.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 103.60 with targets at 103.90 & 104.05 in extension.

Alternative scenario:

Below 103.60, look for further downside with 103.45 & 103.30 as targets.

Resistance 103.9 104.05 104.2
Support 103.6 103.45 103.3
Equities Brace for Earnings as Oil Retreats
Gold

Last: 1,856

Pivot: 1.00

Review:

Gold climbed in Monday’s session, bouncing back strongly from session lows, gaining 1.4% in the just-ended week. That was less half than of the 3.5% it lost in the prior two weeks.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 1,845.00 with targets at 1,865.00 & 1,875.00 in extension.

Alternative scenario:

Below 1,845.00, look for further downside with 1,837.00 & 1,832.00 as targets.

Resistance 1,865 1,875 1,885
Support 1,845 1,837 1,832
Equities Brace for Earnings as Oil Retreats
Oil

Last: 52.3

Pivot: 51.90

Review:

Crude oil traded down slightly at $51.75 a barrel from $52.25 earlier in the session.

Technical comment:

The RSI has just landed on its neutrality area at 50% and is turning up.

Preference scenario:

Long positions above 51.90 with targets at 52.80 & 53.20 in extension.

Alternative scenario:

Below 51.90, look for further downside with 51.45 & 51.10 as targets.

Resistance 52.8 53.2 53.6
Support 51.9 51.45 51.1
Equities Brace for Earnings as Oil Retreats
EUR/USD

Last: 1.2168

Pivot: 1.2190

Review:

The EUR/USD pair extended its weekly advance moderately on Friday, reaching a high of 1.2189, to close the week with gains settling around the 1.2170 mark.

Technical comment:

As long as the resistance at 1.2190 is not surpassed, the risk of the break below 1.2150 remains high.

Preference scenario:

Short positions below 1.2190 with targets at 1.2150 & 1.2135 in extension.

Alternative scenario:

Above 1.2190, look for further upside with 1.2210 & 1.2225 as targets.

Resistance 1.219 1.221 1.2225
Support 1.2225 1.2135 1.2115
Equities Brace for Earnings as Oil Retreats
GBP/USD

Last: 1.3687

Pivot: 1.3655

Review:

The GBP/USD pair retreated on Friday from its prior highs of the week. However, it was still able to close the week with gains at 1.3680.

Technical comment:

The RSI calls for a rebound.

Preference scenario:

Long positions above 1.3655 with targets at 1.3710 & 1.3740 in extension.

Alternative scenario:

Below 1.3655, look for further downside with 1.3635 & 1.3620 as targets.

Resistance 1.371 1.374 1.378
Support 1.3655 1.3635 1.362
Equities Brace for Earnings as Oil Retreats

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