Daily Market Report: February 18, 2021

Review:

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%.

Technical comment:

The NASDAQ 100 RSI is mixed with a bearish bias.

Preference scenario:

Short positions below 13,755.00, with targets at 13550.00 & 13450.00 in extension.

Alternative scenario:

Above 13,755.00, look for further upside with 13875.00 & 13995.00 as targets.

Resistance	13,755	13,875	13,995
Support	13,550	13,450	13,365

Review:

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.

Technical comment:

The RSI calls for a drop.

Preference scenario:

Short positions below 1.2720, with targets at 1.2675 & 1.2660 in extension.

Alternative scenario:

Above 1.2720, look for further upside with 1.2740 & 1.2760 as targets.

Resistance	1.2720	1.2740	1.2760
Support	1.2675	1.2660	1.2645

Review:

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.

Technical comment:

The RSI remains mixed to bearish.

Preference scenario:

Short positions below 1,787.00, with targets at 1,769.00 & 1,760.00 in extension.

Alternative scenario:

Above 1,787.00, look for further upside with 1,793.00 & 1,801.00 as targets.

Resistance	1,787	1,793	1,801
Support	1,769	1,760	1,744

Review:

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.

Technical comment:

The RSI advocates for further upside.

Preference scenario:

Long positions above 60.80, with targets at 63.05 & 63.75 in extension.

Alternative scenario:

Below 60.80, look for further downside with 60.25 & 59.40 as targets.

Resistance	63.05	63.75	64.35
Support	60.80	60.25	59.40

Review:

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.

Technical comment:

The upward potential is likely to be limited by the resistance at 1.2060.

Preference scenario:

Short positions below 1.2060, with targets at 1.2030 & 1.2020 in extension.

Alternative scenario:

Above 1.2060, look for further upside with 1.2085 & 1.2105 as targets.

Resistance	1.2060	1.2085	1.2105
Support	1.2030	1.2020	1.2000

Review:

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.

Technical comment:

The RSI calls for a rebound.

Preference scenario:

Long positions above 1.3845, with targets at 1.3885 & 1.3905 in extension.

Alternative scenario:

Below 1.3845, look for further downside with 1.3830 & 1.3815 as targets.

Resistance	1.3885	1.3905	1.3930
Support	1.3845	1.3830	1.3815