Daily Market Report: April 7, 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.

April 7, 2021

S&P, Dow Retreat From Record Highs as Stocks Take a Breather

U.S. Stock Market

Last: 4,073.73

Pivot: 3,940

Review:

US stocks were lower after the close on Tuesday, as losses in the Healthcare, Technology and Oil & Gas sectors led shares downwards. At the close in NYSE, the Dow Jones Industrial Average declined 0.29%, while the S&P 500 index fell 0.10%, and the NASDAQ Composite index edged down by 0.05%.

Technical comment:

The S&P 500 RSI shows upside momentum.

Preference scenario:

Long positions above 3,940.00, with targets at 4,100.00 & 4,270.00 in extension.

Alternative scenario:

Below 3,940.00, look for further downside with 3,855.00 & 3,725.00 as targets.

Resistance 4,100 4,270 4,450
Support 3,940 3,855 3,725
S&P, Dow Retreat From Record Highs as Stocks Take a Breather
USD/CAD

Last: 1.2571

Pivot: 1.2535

Review:

The USD/CAD exchange rate has been on the front foot for most of the session, rising from the Asia Pacific session lows of around 1.2520 to current levels at around 1.2580.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

Long positions above 1.2535, with targets at 1.2595 & 1.2620 in extension.

Alternative scenario:

Below 1.2535, look for further downside with 1.2520 & 1.2500 as targets.

Resistance 1.2595 1.2620 1.2645
Support 1.2535 1.2520 1.2500
S&P, Dow Retreat From Record Highs as Stocks Take a Breather
Gold

Last: 1,743

Pivot: 1,733

Review:

Gold flirted with a return to $1,750 an ounce on Tuesday as US Treasury yields, and the dollar retreated from recent highs.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 1,733.00, with targets at 1,747.00 & 1,760.00 in extension.

Alternative scenario:

Below 1,733.00, look for further downside with 1,728.00 & 1,721.00 as targets.

Resistance 1,747 1,760 1,773
Support 1,733 1,728 1,721
S&P, Dow Retreat From Record Highs as Stocks Take a Breather
Oil

Last: 59.18

Pivot: 60

Review:

US crude stockpiles fell last week, but rising product inventories continue to suggest the demand outlook remains far from robust despite signs the global recovery process remains intact. West Texas Intermediate, the benchmark for US crude prices, rose by $0.63 a barrel on the news, settling at $59.18 a barrel.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 60.00, with targets at 58.80 & 58.20 in extension.

Alternative scenario:

Above 60.00, look for further upside with 60.90 & 61.70 as targets.

Resistance 60 60.90 61.70
Support 58.80 58.20 57.65
S&P, Dow Retreat From Record Highs as Stocks Take a Breather
EUR/USD

Last: 1.1872

Pivot: 1.1840

Review:

The EUR/USD currency pair is looking to build on a two-day recovery rally, as a break above the 1.1900 mark remains in sight amid a relentless fall in the US Treasury yields, keeping pressure intact on the dollar.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.1840, with targets at 1.1900 & 1.1930 in extension.

Alternative scenario:

Below 1.1840, look for further downside with 1.1820 & 1.1800 as targets.

Resistance 1.1900 1.1930 1.1945
Support 1.1840 1.1820 1.1800
S&P, Dow Retreat From Record Highs as Stocks Take a Breather
GBP/USD

Last: 1.3827

Pivot: 1.3860

Review:

The GBP/USD exchange rate was down by 0.1% to close at 1.3827.

Technical comment:

As long as the resistance at 1.3860 is not surpassed, the risk of the break below 1.3800 remains high.

Preference scenario:

Short positions below 1.3860, with targets at 1.3800 & 1.3770 in extension.

Alternative scenario:

Above 1.3860, look for further upside with 1.3890 & 1.3920 as targets.

Resistance 1.3860 1.3890 1.3920
Support 1.3800 1.3770 1.3740
S&P, Dow Retreat From Record Highs as Stocks Take a Breather

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