Daily Market Report: June 17, 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 17, 2021

US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx

U.S. Stock Market

Last: 4,230.38

Pivot: 4,217

Review:

U.S. stocks were lower after the close on Wednesday, as losses in the Utilities, Basic Materials and Industrials sectors led shares lower. Consequently, the Dow Jones Industrial Average lost 0.77%, while the S&P 500 index declined 0.54%, and the NASDAQ Composite index fell 0.24%. The best performers of the session on the Dow Jones Industrial Average were Merck & Company Inc (NYSE:MRK), which rose 1.19% or 0.90 points to trade at 76.60 at the close. Meanwhile, JPMorgan Chase & Co (NYSE:JPM) added 0.70% or 1.08 points to end at 156.26 and Apple Inc (NASDAQ:AAPL) was up 0.38% or 0.49 points to 130.13 in late trade.

Technical comment:

The S&P 500 RSI shows upside momentum.

Preference scenario:

Long or Buy opportunities could occur if the price climbs above 4217.00, with targets at 4257.00 and 4275.00 in extension.

Alternative scenario:

Should it slide below 4217.00 further downside movement is almost imminent, with 4203.00 and 4192.00 as targets.

Resistance 4,257 4,275 4,300
Support 4,192 4,203 4,217
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx
USD/CAD

Last: 1.225

Pivot: 1.2214

Review:

USD/CAD jumps to multi-week highs above 1.2230 on Fed's dot plot.

Technical comment:

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or overbought. Therefore, a correction could shape (bearish divergence). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50-period moving average (respectively at 1.2190 and 1.2185).

Preference scenario:

The upside prevails as long as 1.2214 is support.

Alternative scenario:

A downside breakout of 1.2214 would call for 1.2191 and 1.2177.

Resistance 1.2283 1.2297 1.231
Support 1.2177 1.2191 1.2214
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx
Gold

Last: 1,833.72

Pivot: 1,847.5

Review:

Gold climbed on Wednesday, with prices posting their first gain in four sessions. Gold prices then moved lower shortly after the Federal Open Market Committee kept its benchmark interest rate unchanged near zero.

Technical comment:

The RSI is trading below 30. This could mean that either prices are in a lasting downtrend or oversold. Therefore, a rebound could shape (bullish divergence). The MACD is negative and below its signal line. The configuration is negative. Gold is trading under both its 20 and 50-period moving average (respectively at 1853.80 and 1856.70). Finally, the Gold price has penetrated its lower Bollinger band (1835.92).

Preference scenario:

The downside prevails as long as 1847.50 is resistance.

Alternative scenario:

An upside breakout of 1847.50, would call for 1858.50 and 1864.50.

Resistance 1,847.5 1,858.5 1,864.5
Support 1,802.5 1,808.5 1,815
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx
Oil

Last: 71.91

Pivot: 72.25

Review:

U.S. crude oil futures fell by 39 cents, or 0.5%, to $71.76 a barrel, after reaching its highest since October 2018 the previous day.

Technical comment:

The break below 72.25 is a negative signal that has opened a path to 71.55.

Preference scenario:

Oil could face some short-selling action should the price drop below 72.25. Should this happen, the next price targets would be at 71.55 and 70.95 in extension.

Alternative scenario:

Should the price climb above 72.25, further upside bias looms, with 73.00 and 73.70 as targets.

Resistance 72.25 73 73.7
Support 70.73 70.95 71.55
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx
EUR/USD

Last: 1.1994

Pivot: 1.203

Review:

EUR/USD was marginally higher at 1.2128.

Technical comment:

The RSI has broken down its 30 level.

Preference scenario:

Traders might look for opportunities to go short if the prce slips below 1.2030, with targets at 1.1975 and 1.1950 in extension.

Alternative scenario:

Should it break above 1.2030, further upside momentum could shape, with 1.2055 and 1.2080 as the next targets.

Resistance 1.203 1.2055 1.208
Support 1.1925 1.195 1.1975
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx
GBP/USD

Last: 1.3991

Pivot: 1.403

Review:

GBP/USD was up 0.1% at 1.4087, above Tuesday’s one-month low of 1.4035.

Technical comment:

A break below 1.3970 would trigger a drop towards 1.3945.

Preference scenario:

Any break below 1.4030 would open the path to 1.3970 and 1.3945 in extension, on a clear downtrend.

Alternative scenario:

Should the price break above 1.4030, further upside movement is likely, with 1.4050 and 1.4075 as targets.

Resistance 1.403 1.405 1.4075
Support 1.392 1.3945 1.397
US Equities Edged Lower Gold Reeled Between Highs and Lows on Feds Near Zero Interest Rates.xlsx

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.

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