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. stocks were lower after the close on Monday, as losses in the Oil and Gas, Financials and Basic Materials sectors led shares lower.
On the S&P 500 chart, the RSI is bearish and calls for further downside.
A price breakout below 4296.00 would open the path towards 4197.00 and 4165.00 in extension.
A breakout above 4296.00 would make way for further upside with 4323.00 and 4374.00 as targets.
The USDJPY pair advances as Delta variant dampens risk appetite.
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).
A rebound towards 110.07 is likely.
Should the price drop below 109.14 it would pen the path towards108.80 and 108.60.
Gold prices mark back-to-back declines.
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).
A short-term rebound towards 1815.50 cannot be ruled out.
The downside breakout of 1803.50 would call for 1799.50 and 1796.50.
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.
The RSI lacks upward momentum.
A breakout below 68.00 would call for further downside, targeting 64.60 and 62.85 in extension.
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.
The euro was down, after dropping to a three-month low of $1.1764, ahead of this week's European Central Bank meeting.
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).
The EURUSD pair is currently under pressure below 1.1819.
If it manages to move above 1.1819, it will open the path towards 1.1846 and 1.1863.
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.
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).
The downside prevails as long as 1.3680 is resistance.
The upside breakout of 1.3680 would call for 1.3702 and 1.3715.
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