Daily Market Report: July 19, 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.

July 19, 2021

US Equities Slip; Gold takes a dive

U.S. Stock Market

Last: 14.00

Pivot: 14.00

Review:

U.S. stocks were lower after the close on Friday, as losses in the Oil and Gas, Basic Materials and Consumer Services sectors led shares lower. At the close on NYSE, the Dow Jones Industrial Average fell 0.86%, while the SandP 500 index fell 0.75%, and the NASDAQ Composite index lost 0.80%.

Technical comment:

Looking at the NASDAQ Composite chart, one can observe that the RSI is mixed and calls for caution.

Preference scenario:

Any breakout above 14540.00 would create an opportunity to go long, with an eye to 15000.00 and 15500.00 in extension.

Alternative scenario:

Should the price drop below 14540.00 it would open the path to further downside with 14300.00 and 14070.00 as targets.

Resistance 15.00 15.00 15.00
Support 14.00 14.00 14.00
US Equities Slip; Gold takes a dive
USDCAD

Last: 1.2609

Pivot: 1.24

Review:

The Canadian dollar climbed 0.1% on Friday, helped by upbeat domestic wholesale trade data, a day after touching a near 3-month low against its U.S. counterpart.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

If the price manages to break above 1.2370, traders will likely be looking for further upside with 1.2740 and1.2880 close in focus.

Alternative scenario:

A drop below 1.2370 would open the door to further downside with 1.2250 and 1.2130 as targets.

Resistance 1.274 1.288 1.303
Support 1.237 1.225 1.213
US Equities Slip; Gold takes a dive
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold prices end lower, but climb for a 4th week in a row.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

A price drop below 1820.00 will likely create room for further downside and short-selling action with targets at 1803.00 and 1798.00 in extension.

Alternative scenario:

On the flipside, should the price slash through the1820.00 level, further upside would be imminent, with 1826.00 and 1832.00 as targets.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
US Equities Slip; Gold takes a dive
Oil

Last: 71.14

Pivot: 72

Review:

Crude oil prices edged higher Friday, rebounding somewhat after overnight losses but still on course for their worst week since mid-March as worries over rising Covid-19 cases and the potential for additional supply weigh.

Technical comment:

The RSI advocates for further downside.

Preference scenario:

If the price falls below 72.00 it will open the route to 70.60 and 70.15 in extension.

Alternative scenario:

Conversely, if it breaks above 72.00, a further upside path will be open with 72.40 and 72.80 as targets.

Resistance 72 72.4 72.8
Support 70.6 70.15 69.3
US Equities Slip; Gold takes a dive
EUR/USD

Last: 1.1812

Pivot: 1.198

Review:

TheEURUSD pair traded higher on Friday, closing at 1.1812.

Technical comment:

As long as 1.1980 is resistance, some choppy price action can be expected with a bearish bias.

Preference scenario:

Traders will be looking for SELL opportunities if the price slips below 1.1980 with targets at 1.1700 and 1.1600 in extension.

Alternative scenario:

Should it move above 1.1980, the road to further upside would then be open with 1.2100 and 1.2190 as targets.

Resistance 1.198 1.21 1.219
Support 1.17 1.16 1.149
US Equities Slip; Gold takes a dive
GBP/USD

Last: 1.3762

Pivot: 1.396

Review:

Sterling fell against the dollar, on pace for its worst week in a month, as investors sought safety in the greenback amid concerns over rising COVID-19 cases globally.

Technical comment:

The RSI lacks upward momentum.

Preference scenario:

A breakout below 1.3960 would open the path towards 1.3670 and 1.3540 in extension.

Alternative scenario:

In comparison, a breakout above 1.3960 would open the path towards 1.4090 and 1.4240 as targets.

Resistance 1.396 1.409 1.424
Support 1.367 1.354 1.343
US Equities Slip; Gold takes a dive

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