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. Stock Market

Last: 34,303

Pivot: 34,355

Review:

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%.

Technical comment:

As long as the resistance at 34355 is not surpassed, the risk of the break below 34200 remains high.

Preference scenario:

Traders might be looking for short positions should the price break below 34355, with targets at 34200 and 34060 in extension.

Alternative scenario:

If it climbs above 34355, they might look for further upside movement, with 34420 and 34515 as targets.

Resistance 34,355 34,420 34,515
Support 34,200 34,060 33,945
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
USD/CAD

Last: 1.2184

Pivot: 1.2165

Review:

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.

Technical comment:

A support base at 1.2165 has formed, allowing for a temporary stabilisation.

Preference scenario:

Traders could opt for long positions if the price travels above 1.2165, with targets at 1.2205 and 1.2220 in extension.

Alternative scenario:

If it drops below 1.2165, further downside movement is likely with 1.2150 and 1.2125 as targets.

Resistance 1.2205 1.222 1.224
Support 1.2165 1.215 1.2125
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
Gold

Last: 1,858

Pivot: 1,868

Review:

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

Technical comment:

As long as the resistance at 1868.00 is not surpassed, the risk of a break below 1844.00 remains high.

Preference scenario:

Traders could opt for short positions, if the price falls below 1868.00, with targets at 1844.00 and 1834.00 in extension.

Alternative scenario:

If t climbs above 1868.00, further upside movement is likely, with 1878.00 and 1889.00 as targets.

Resistance 1,868 1,878 1,889
Support 1,844 1,834 1,827
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
Oil

Last: 72.47

Pivot: 71.65

Review:

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.

Technical comment:

The RSI shows upside momentum.

Preference scenario:

Long positions could be an option if the price rises above 71.65, with targets at 73.00 and 73.70 in extension.

Alternative scenario:

If it slips below 71.65, further downside movement is likely, with 71.20 and 70.70 as targets.

Resistance 73 73.7 74.4
Support 71.65 71.2 70.7
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
EUR/USD

Last: 1.2126

Pivot: 1.2115

Review:

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.

Technical comment:

The RSI lacks downward momentum.

Preference scenario:

An opportunity to go long could occur should the price move above 1.2115, with targets at 1.2135 & 1.2150 in extension.

Alternative scenario:

If it slips below 1.2115, further downside movement is likely, with 1.2100 and 1.2090 as targets.

Resistance 1.2135 1.215 1.2165
Support 1.2115 1.21 1.209
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower
GBP/USD

Last: 1.408

Pivot: 1.4065

Review:

GBP/USD refreshes intraday low to 1.4077 within a choppy range below 1.4100 during Wednesday’s Asian session.

Technical comment:

The RSI lacks downward momentum.

Preference scenario:

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.

Alternative scenario:

If it slides below 1.4065, further downside action is likely, with 1.4050 and 1.4030 as targets.

Resistance 1.4095 1.411 1.413
Support 1.4065 1.405 1.403
Gold slips as investors await Fed Decision Oil surges US Equities inch Lower

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of Trade360, a third party or otherwise.

Trade with a Licenced Broker

Search

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.45% of retail investor accounts lose money when trading CFDs with Trade360. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Learn more about managing risks.