Daily Market Report: June 11, 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.

June 11, 2021

US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings

U.S. Stock Market

Last: 34,523

Pivot: 34,449

Review:

U.S. stocks were higher after the close on Thursday, as gains in the Healthcare, Technology and Consumer Services sectors led shares higher.

Technical comment:

The next resistance levels to watch are at 34665 and 34815 in extension.

Preference scenario:

Long positions would be favoured if the price travels above 34449, making 34665 and 34815 price targets.

Alternative scenario:

If the price drops below 34449, it will open the path to further downside movement, with 34390 and 34335 as targets.

Resistance 34,665 34,815 35,090
Support 34,449 34,390 34,335
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings
USD/CAD

Last: 1.2078

Pivot: 1.2275

Review:

After spending most of the day in a very tight range around 1.2100, the USD/CAD pair lost its traction during the American trading hours.

Technical comment:

As long as 1.2110 is resistance, a choppy price action remains in focus, with a bearish bias.

Preference scenario:

If the price drops below 1.2110, it will likely incite some short-selling action, with targets at 1.2070 and 1.2055 in extension.

Alternative scenario:

If the price rises above 1.2110, further upside breakouts are likely, with 1.2125 & 1.2140 as targets.

Resistance 1.211 1.2125 1.214
Support 1.207 1.2055 1.204
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings
Gold

Last: 1,897.7

Pivot: 1,888

Review:

Gold whipsawed after a very hot US CPI sent Treasury yields higher. Once investors digested the inflation report, they quickly concluded inflation will still likely be transitory and that it doesn’t change the longer-term narrative for Fed policy. The risks of persistent inflation continue to dwindle despite hotter-than-expected inflation readings. Price hikes are sticky so financial markets need to be careful and not expect consumer giants to roll them back. For now, gold will probably see more inflows from the stimulus trade and broad rally with risky assets and less from inflation hedges.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Traders will likely look for BUY opportunities should the price climb above 1888.00, with targets at 1909.00 & 1916.00 in extension.

Alternative scenario:

If it drops below 1888.00, they will start looking for further downside action, with 1881.00 and 1875.00 as targets.

Resistance 1,909 1,916 1,923
Support 1,888 1,881 1,875
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings
Oil

Last: 70.17

Pivot: 69.6

Review:

Crude prices pushed higher after the US inflation report and ECB policy decision. The inflation report was hotter-than-expected but the key takeaway was another month of surging used car prices cemented the view that this driving season will probably be stronger than expected. Commodity prices should remain elevated on Fed support as this inflation report still supports the idea that inflation will be transitory. Stimulus will remain strong in Europe as the ECB accelerates its pandemic purchases and is not ready to talk about exit its PEPP program.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

If the price jumps above 69.60, it will likely stir some buying action with targets at 70.65 and 71.20 in extension.

Alternative scenario:

If it falls below 69.60, it will open the path to further downside action, with 69.10 and 68.70 as targets.

Resistance 70.65 71.2 71.8
Support 69.6 69.1 68.7
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings
EUR/USD

Last: 1.2173

Pivot: 1.2155

Review:

EUR/USD fell 0.07% to $1.2171 after hitting a low of $1.2144.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions are favoured if the price travels above 1.2155, with targets at 1.2195 and 1.2215 in extension.

Alternative scenario:

If it drops below 1.2155, further downside movement is likely, with price targets at 1.2140 and 1.2125 in extension.

Resistance 1.2195 1.2215 1.223
Support 1.2155 1.214 1.2125
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings
GBP/USD

Last: 1.4172

Pivot: 1.413

Review:

If the bulls increase their momentum, it will drive the price to penetrate the $1.42 level, allowing it to test the $1.43 and $1.44 price levels. Should the price break down the support level of $1.41, it will decrease to $1.40 and $1.39 price levels.

Technical comment:

The RSI calls for a new upleg.

Preference scenario:

Long positions are likely should the price rise above 1.4130, with targets at 1.4190 and 1.4220 in extension.

Alternative scenario:

Should it break below 1.4130, further downside momentum begins to take shape, with price targets at 1.4100 and 1.4070 in extension.

Resistance 1.419 1.422 1.426
Support 1.413 1.41 1.407
US Equities Ticked Higher as Inflation Concerns Subside Despite Hotter than Expected Readings

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