Daily Market Report: July 20, 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 20, 2021

US Equities Plummet; Oil Tanks

U.S. Stock Market

Last: 4.00

Pivot: 4.00

Review:

U.S. stocks were lower after the close on Monday, as losses in the Oil and Gas, Financials and Basic Materials sectors led shares lower.

Technical comment:

On the S&P 500 chart, the RSI is bearish and calls for further downside.

Preference scenario:

A price breakout below 4296.00 would open the path towards 4197.00 and 4165.00 in extension.

Alternative scenario:

A breakout above 4296.00 would make way for further upside with 4323.00 and 4374.00 as targets.

Resistance 4.00 4.00 4.00
Support 4.00 4.00 4.00
US Equities Plummet; Oil Tanks
USDJPY

Last: 109.45

Pivot: 109.14

Review:

The USDJPY pair advances as Delta variant dampens risk appetite.

Technical comment:

The RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price is trading under both its 20 and 50-period moving average levels (respectively at 109.47 and 109.75).

Preference scenario:

A rebound towards 110.07 is likely.

Alternative scenario:

Should the price drop below 109.14 it would pen the path towards108.80 and 108.60.

Resistance 109.87 110.07 110.27
Support 109.14 108.8 108.6
US Equities Plummet; Oil Tanks
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold prices mark back-to-back declines.

Technical comment:

The RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Gold stands above its 20-period moving average (1807.50) but below its 50-period moving average (1809.40).

Preference scenario:

A short-term rebound towards 1815.50 cannot be ruled out.

Alternative scenario:

The downside breakout of 1803.50 would call for 1799.50 and 1796.50.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
US Equities Plummet; Oil Tanks
Oil

Last: 65.96

Pivot: 68

Review:

Oil slumped $5 a barrel on Monday, closing out its worst day since March, after an OPEC+ agreement to boost output stoked fears of a surplus just as rising COVID-19 infections once again threaten demand.

Technical comment:

The RSI lacks upward momentum.

Preference scenario:

A breakout below 68.00 would call for further downside, targeting 64.60 and 62.85 in extension.

Alternative scenario:

On the contrary, should the price manage to climb above 68.00, it would call for further upside, with 69.10 and 69.95 as targets.

Resistance 68 69.1 69.95
Support 64.6 62.85 62.2
US Equities Plummet; Oil Tanks
EUR/USD

Last: 1.1796

Pivot: 1.1819

Review:

The euro was down, after dropping to a three-month low of $1.1764, ahead of this week's European Central Bank meeting.

Technical comment:

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the price stands above its 20-period moving average (1.1794) but below its 50-period moving average (1.1798).

Preference scenario:

The EURUSD pair is currently under pressure below 1.1819.

Alternative scenario:

If it manages to move above 1.1819, it will open the path towards 1.1846 and 1.1863.

Resistance 1.1819 1.1846 1.1863
Support 1.176 1.1744 1.1728
US Equities Plummet; Oil Tanks
GBP/USD

Last: 1.3663

Pivot: 1.368

Review:

The pound was down after UK Health Minister Sajid Javid announced over the weekend that he had tested positive for COVID-19 and was in self-isolation. That forced Prime Minister Boris Johnson and Finance Minister Rishi Sunak into quarantine, pushing Sterling down to a three-month trough against the dollar earlier in the session.

Technical comment:

The RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50-period moving average levels (respectively at 1.3687 and 1.3725).

Preference scenario:

The downside prevails as long as 1.3680 is resistance.

Alternative scenario:

The upside breakout of 1.3680 would call for 1.3702 and 1.3715.

Resistance 1.368 1.3702 1.3715
Support 1.3627 1.3614 1.3601
US Equities Plummet; Oil Tanks

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