Daily Market Report: July 21, 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 21, 2021

US Equities Tick Higher; Gold Rises on Continued Health Conerns

U.S. Stock Market

Last: 34.00

Pivot: 34.00

Review:

U.S. stocks were higher after the close on Tuesday, as gains in the Financials, Industrials and Technology sectors led shares higher.

Technical comment:

On the Dow Jones 30-minte chart, the RSI is oversold and poised for further upside.

Preference scenario:

A breakout above 34375 would open the path to 34825 and 35080 in extension.

Alternative scenario:

A breakout below 34375 would make way for further downside, with 33980 and 33740 as targets.

Resistance 34.00 35.00 35.00
Support 34.00 33.00 33.00
US Equities Tick Higher; Gold Rises on Continued Health Conerns
USDCAD

Last: 1.2616

Pivot: 1.238

Review:

The Canadian dollar dropped to its lowest since late November.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Should the price break above 1.2380, it would likely spur some buying action, with 1.2740 and 1.2880 in extension.

Alternative scenario:

Should it drop below 1.2380, it would open the path towards 1.2250 and 1.2130 as the next price targets.

Resistance 1.274 1.288 1.303
Support 1.238 1.225 1.213
US Equities Tick Higher; Gold Rises on Continued Health Conerns
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold moves higher up, boosted by ongoing COVID-19 concerns.

Technical comment:

The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Gold stands below its 20 and 50-period moving average levels (respectively at 1813.90 and 1814.30).

Preference scenario:

The downside prevails as long as 1813 is resistance.

Alternative scenario:

Any breakout above 1813 would clear the way towards 1817.50 and 1820.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
US Equities Tick Higher; Gold Rises on Continued Health Conerns
Oil

Last: 67.44

Pivot: 65

Review:

Oil steadies after epic loss. Stockpiles are in focus as investors await EIA's Crude Oil Inventories reading.

Technical comment:

The next resistance levels to watch are at 69.10 and then at 71.10.

Preference scenario:

An opportunity to go long might present itself, provided that the price breaks above 65.00. Shopuld this happen, it would open the route to 69.10 and 71.10 in extension.

Alternative scenario:

If, however, the price slips below 65.00, traders will likely start looking for further downside, with 63.70 and 62.85 as targets.

Resistance 69.1 71.1 72.05
Support 65 63.7 62.85
US Equities Tick Higher; Gold Rises on Continued Health Conerns
EUR/USD

Last: 1.1781

Pivot: 1.1754

Review:

EURUSD traded lower, the lowest since early April ahead of a European Central Bank policy decision on Thursday.

Technical comment:

The RSI is above 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Moreover, the price stands above its 20-period moving average (1.1776) but below its 50-period moving average (1.1785).

Preference scenario:

A rebound towards 1.1821 is likely.

Alternative scenario:

Should it break below 1.1754, the road to 1.1722 would be open, eyeing 1.1704 next.

Resistance 1.1821 1.184 1.1859
Support 1.1754 1.1722 1.1704
US Equities Tick Higher; Gold Rises on Continued Health Conerns
GBP/USD

Last: 1.3631

Pivot: 1.3607

Review:

The British pound was also among the biggest losers, with the currency declining 0.4% to $1.3607, as Boris Johnson's "freedom day" - ending more than a year of COVID-19 lockdown restrictions in the UK - was marred by surging infections.

Technical comment:

The RSI is above its neutrality area at 50. The MACD is negative and above its signal line. The MACD must break above its zero level to clear the way for further upside. Moreover, the price is trading above its 20-period moving average (1.3616) but below its 50-period moving average (1.3645).

Preference scenario:

A rebound towards 1.3663 could be expected.

Alternative scenario:

If the price falls below 1.3607, it will open the path towards1.3582 and 1.3567 in extension.

Resistance 1.3663 1.3678 1.3693
Support 1.3607 1.3582 1.3567
US Equities Tick Higher; Gold Rises on Continued Health Conerns

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