Daily Market Report: February 19, 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 19, 2021

Stocks Face Renewed Pressure as Bond Yields Rally

U.S. Stock Market

Last: 3,919.84

Pivot: 3,931

Review:

Stocks on Wall Street closed lower on Thursday as investors shifted out of Big Tech, while an unexpected rise in weekly US jobless claims pointed to a fragile recovery in the labour market. The Dow Jones Industrial Average retreated 0.38%, the S&P 500 index fell by 0.44% and the NASDAQ Composite index lost 0.72% of its value.

Technical comment:

For S&P 500, as long as the resistance at 3,931.00 is not surpassed, the risk of the break below 3,885.00 remains high.

Preference scenario:

Short positions below 3,931.00, with targets at 3,885.00 & 3872.00 in extension.

Alternative scenario:

Above 3,931.00, look for further upside with 3,941.00 & 3,950.00 as targets.

Resistance 3,931 3,941 3,950
Support 3,885 3,872 3,860
Stocks Face Renewed Pressure as Bond Yields Rally
USD/CAD

Last: 1.2682

Pivot: 1.2710

Review:

The USD/CAD exchange rate dropped to a daily low of 1.2660 during the early trading hours of the American session. Nonetheless, it did not have a hard time staging a rebound as falling crude oil prices hurt the commodity-sensitive Loonie.

Technical comment:

As long as 1.2710 is resistance, look for choppy price action with a bearish bias.

Preference scenario:

Short positions below 1.2710, with targets at 1.2660 & 1.2635 in extension.

Alternative scenario:

Above 1.2710, look for further upside with 1.2730 & 1.2745 as targets.

Resistance 1.2710 1.2730 1.2745
Support 1.2660 1.2635 1.2605
Stocks Face Renewed Pressure as Bond Yields Rally
Gold

Last: 1,762

Pivot: 1,780

Review:

Review: Gold entered 2021 with lofty expectations on the back of a record high as well as its biggest annual gain in a decade. Instead, the precious metal is off to its worst start in 30 years.

Technical comment:

The RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 1,780.00, with targets at 1,750.00 & 1,737.00 in extension.

Alternative scenario:

Above 1,780.00, look for further upside with 1,789.00 & 1,800.00 as targets.

Resistance 1,780 1,789 1,800
Support 1,750 1,737 1,725
Stocks Face Renewed Pressure as Bond Yields Rally
Oil

Last: 59.77

Pivot: 60.70

Review:

Crude oil fell its most in nearly a month alongside a broader market selloff. The ongoing energy crisis in the US will likely keep refineries shut for another week, putting pressure on supplies.

Technical comment:

The RSI shows downside momentum.

Preference scenario:

Short positions below 60.70, with targets at 59.30 & 58.30 in extension.

Alternative scenario:

Above 60.70, look for further upside with 61.20 & 61.70 as targets.

Resistance 60.70 61.20 61.70
Support 59.30 58.30 57.40
Stocks Face Renewed Pressure as Bond Yields Rally
EUR/USD

Last: 1.2093

Pivot: 1.2075

Review:

The Euro ended the session slightly up against the Dollar at 1.2089, after rising 0.4% overnight.

Technical comment:

The break above 1.2075 is a positive signal that has opened a path to 1.2105.

Preference scenario:

Long positions above 1.2075, with targets at 1.2105 & 1.2120 in extension.

Alternative scenario:

Below 1.2075, look for further downside with 1.2060 & 1.2045 as targets.

Resistance 1.2105 1.2120 1.2140
Support 1.2075 1.2060 1.2045
Stocks Face Renewed Pressure as Bond Yields Rally
GBP/USD

Last: 1.3969

Pivot: 1.3945

Review:

The Pound surged to nearly three-year highs against the Dollar on Thursday. The currency pair is likely to continue its upward trajectory over the short-term however, it could be in for rude awakening once the impact of Brexit begins to make its mark.

Technical comment:

The break above 1.3945 is a positive signal that has opened a path to 1.4000.

Preference scenario:

Long positions above 1.3945, with targets at 1.4000 & 1.4025 in extension.

Alternative scenario:

Below 1.3945, look for further downside with 1.3925 & 1.3900 as targets.

Resistance 1.4000 1.4025 1.4050
Support 1.3945 1.3925 1.3900
Stocks Face Renewed Pressure as Bond Yields Rally

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