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
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.
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.
Short positions below 3,931.00, with targets at 3,885.00 & 3872.00 in extension.
Above 3,931.00, look for further upside with 3,941.00 & 3,950.00 as targets.
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.
As long as 1.2710 is resistance, look for choppy price action with a bearish bias.
Short positions below 1.2710, with targets at 1.2660 & 1.2635 in extension.
Above 1.2710, look for further upside with 1.2730 & 1.2745 as targets.
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.
The RSI is bearish and calls for further downside.
Short positions below 1,780.00, with targets at 1,750.00 & 1,737.00 in extension.
Above 1,780.00, look for further upside with 1,789.00 & 1,800.00 as targets.
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.
The RSI shows downside momentum.
Short positions below 60.70, with targets at 59.30 & 58.30 in extension.
Above 60.70, look for further upside with 61.20 & 61.70 as targets.
The Euro ended the session slightly up against the Dollar at 1.2089, after rising 0.4% overnight.
The break above 1.2075 is a positive signal that has opened a path to 1.2105.
Long positions above 1.2075, with targets at 1.2105 & 1.2120 in extension.
Below 1.2075, look for further downside with 1.2060 & 1.2045 as targets.
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.
The break above 1.3945 is a positive signal that has opened a path to 1.4000.
Long positions above 1.3945, with targets at 1.4000 & 1.4025 in extension.
Below 1.3945, look for further downside with 1.3925 & 1.3900 as targets.
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