Daily Market Report: February 18, 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.
February 18, 2021
Oil Resumes Its Rise as Stocks Close Mixed
U.S. stocks were again relatively mixed after the close on Wednesday, as gains in the Telecoms, Oil & Gas and Consumer Services sectors pushed shares higher while losses across the Technology, Industrials and Basic Materials sectors dampened enthusiasm. The Dow Jones Industrial Average gained 0.29%, while the S&P 500 index remained steady falling by just 0.03%, and the NASDAQ Composite index lost ground by a more significant 0.58%.
The NASDAQ 100 RSI is mixed with a bearish bias.
Short positions below 13,755.00, with targets at 13550.00 & 13450.00 in extension.
Above 13,755.00, look for further upside with 13875.00 & 13995.00 as targets.
The USD/CAD exchange rate saw a sharp reversal on Wednesday, rallying as high as the 1.2740s only then to quickly drop back below 1.2700. Strong US data was behind the initial rally before strong Canadian data and gains in Crude Oil helped the Loonie recover.
The RSI calls for a drop.
Short positions below 1.2720, with targets at 1.2675 & 1.2660 in extension.
Above 1.2720, look for further upside with 1.2740 & 1.2760 as targets.
Gold held near its lowest level in more than two months as an uptick in the dollar and further signs of economic recovery pummelled demand for the traditionally ‘safe-haven’ asset.
The RSI remains mixed to bearish.
Short positions below 1,787.00, with targets at 1,769.00 & 1,760.00 in extension.
Above 1,787.00, look for further upside with 1,793.00 & 1,801.00 as targets.
Oil extended its rally onwards, firing towards $62 a barrel as a worsening US energy crisis took out almost 40% of the nation’s crude production.
The RSI advocates for further upside.
Long positions above 60.80, with targets at 63.05 & 63.75 in extension.
Below 60.80, look for further downside with 60.25 & 59.40 as targets.
A dovish tone to the minutes of the most recent FOMC meeting, released at 19:00GMT on Wednesday did not come to the rescue of EUR/USD. The currency pair, which has been under pressure in recent days, is currently licking its wounds after bouncing off session lows and trading in the 1.2040’s. The Euro depreciated about 0.5% against the Dollar and was one of the worse G10 FX performers on the day.
The upward potential is likely to be limited by the resistance at 1.2060.
Short positions below 1.2060, with targets at 1.2030 & 1.2020 in extension.
Above 1.2060, look for further upside with 1.2085 & 1.2105 as targets.
The GBP/USD pair edged lower and settled in the 1.3850 price zone, despite upbeat UK data as buying the dollar was the name of the game. The due corrective decline, however, is far from suggesting pound bulls gave up, mainly considering progress in the UK macroeconomic figures and coronavirus immunisation.
The RSI calls for a rebound.
Long positions above 1.3845, with targets at 1.3885 & 1.3905 in extension.
Below 1.3845, look for further downside with 1.3830 & 1.3815 as targets.
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