Daily Market Report: June 16, 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 16, 2021
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
U.S. stocks were lower after the close on Tuesday, as losses in the Consumer Goods, Technology and Consumer Services sectors led shares lower. As a result, the Dow Jones Industrial Average declined 0.27%, while the S&P 500 index lost 0.20%, and the NASDAQ Composite index declined 0.71%.
As long as the resistance at 34355 is not surpassed, the risk of the break below 34200 remains high.
Traders might be looking for short positions should the price break below 34355, with targets at 34200 and 34060 in extension.
If it climbs above 34355, they might look for further upside movement, with 34420 and 34515 as targets.
The USD/CAD moved sideways in a very tight range during the Asian trading hours but managed to gather bullish momentum in the European session and advanced to its highest level in a month at 1.2204. Currently, the pair is up 0.5% on the day at 1.2200.
A support base at 1.2165 has formed, allowing for a temporary stabilisation.
Traders could opt for long positions if the price travels above 1.2165, with targets at 1.2205 and 1.2220 in extension.
If it drops below 1.2165, further downside movement is likely with 1.2150 and 1.2125 as targets.
Gold was down on Tuesday morning in Asia, continuing its losses after falling to a near one-month low during the previous session. Investors now await a U.S. Federal Reserve policy decision for further clues on inflation and the central bank’s future monetary policy. Gold futures edged down 0.12% to $1,863.60
As long as the resistance at 1868.00 is not surpassed, the risk of a break below 1844.00 remains high.
Traders could opt for short positions, if the price falls below 1868.00, with targets at 1844.00 and 1834.00 in extension.
If t climbs above 1868.00, further upside movement is likely, with 1878.00 and 1889.00 as targets.
Oil climbed as a chorus of prominent traders in the crude market said prices will continue to rise after a nearly 50% rally so far this year.
The RSI shows upside momentum.
Long positions could be an option if the price rises above 71.65, with targets at 73.00 and 73.70 in extension.
If it slips below 71.65, further downside movement is likely, with 71.20 and 70.70 as targets.
One-month risk reversal for the EUR/USD, a gauge of calls to puts, dropped the most since March 04 by the end of Tuesday’s North American trading session. It’s worth mentioning that the options market catalyst drops for the third consecutive day with the latest update.
The RSI lacks downward momentum.
An opportunity to go long could occur should the price move above 1.2115, with targets at 1.2135 & 1.2150 in extension.
If it slips below 1.2115, further downside movement is likely, with 1.2100 and 1.2090 as targets.
GBP/USD refreshes intraday low to 1.4077 within a choppy range below 1.4100 during Wednesday’s Asian session.
The RSI lacks downward momentum.
Long positions might provide traders with profit-taking opportunities should the price rise above 1.4065, with targets at 1.4095 and 1.4110 in extension.
If it slides below 1.4065, further downside action is likely, with 1.4050 and 1.4030 as targets.
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