Daily Market Report: July 22, 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 22, 2021

Dow Jones Edges Higher; Gold Loses 0.4%

U.S. Stock Market

Last: 34.00

Pivot: 34.00

Review:

U.S. stocks were higher after the close on Wednesday, as gains in the Oil and Gas, Basic Materials and Financials sectors led shares higher. At the close on NYSE, the Dow Jones Industrial Average gained 0.83%, while the SandP 500 index gained 0.82%, and the NASDAQ Composite index climbed 0.92%.

Technical comment:

On the Dow JOnes chart, the RSI is above its neutrality area at 50%.

Preference scenario:

If the price breaks above 34550, it will likely spur some buying action. In this case, the next price targets will be at 35075 and 35380 in extension.

Alternative scenario:

Should it break 34550, it would make way for further downside, with 34370 and 33980 as targets.

Resistance 35.00 35.00 35.00
Support 34.00 34.00 33.00
Dow Jones Edges Higher; Gold Loses 0.4%
USD/JPY

Last: 110.28

Pivot: 110.00

Review:

The USD/JPY pair stayed relatively quiet below 110.00 in the first half of the day but gathered bullish momentum during the American session.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

If the price conquers the 110.00 level, it will clear the path towards 110.50 and 110.70 in extension, and thus stirring some buying action.

Alternative scenario:

If it below 110.00, it will pave the way for further downside action, with 109.80 and 109.60 as targets.

Resistance 110.5 110.7 110.90
Support 110 109.8 109.6
Dow Jones Edges Higher; Gold Loses 0.4%
Gold

Last: 1.00

Pivot: 1.00

Review:

Spot gold dropped 0.4% to $1,802.79 an ounce.

Technical comment:

The immediate trend remains down but the momentum is weak.

Preference scenario:

Short positions would be favoured if the price dropped below 1809.00, with targets at 1794.00 and 1788.00 in extension.

Alternative scenario:

If it manages to climb 1809.00, the path to further upside will be open, with 1814.00 and 1819.00 as targets.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
Dow Jones Edges Higher; Gold Loses 0.4%
Oil

Last: 70.24

Pivot: 68.75

Review:

U.S. crude rose 4.75% to $70.39 per barrel.

Technical comment:

The next resistance levels to watch are at $71.40 and $72.40.

Preference scenario:

BUY opportunities could occur should the price rise above $68.75, with targets at $71.40 and $72.40 in extension.

Alternative scenario:

Should it slip below $68.75, the further downside path would be clear, with $67.90 and $66.80 as targets.

Resistance 71.4 72.4 73.35
Support 68.75 67.9 66.8
Dow Jones Edges Higher; Gold Loses 0.4%
EUR/USD

Last: 1.1793

Pivot: 1.177

Review:

The EUR/USD pair recovered some ground, hitting a daily high of 1.1804 on the back of a better market’s mood.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

If the price travels above 1.1770, it will likely give traders a shot in the arm to open long positions, with targets at 1.1810 and 1.1825 in extension.

Alternative scenario:

Should it drop 1.1770, the further downside path would then be clear, with 1.1755 and 1.1740 as targets.

Resistance 1.181 1.1825 1.184
Support 1.177 1.1755 1.174
Dow Jones Edges Higher; Gold Loses 0.4%
GBP/USD

Last: 1.3714

Pivot: 1.367

Review:

The GBP/USD rose further during the American session and printed a fresh daily high at 1.3717.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

If the price climbs above 1.3670, the upside will then be clear, with targets at 1.3745 and 1.3770 in extension.

Alternative scenario:

Should it break out below 1.3670, it would open the dorr to further downside with 1.3640 and 1.3600 as targets.

Resistance 1.3745 1.377 1.38
Support 1.367 1.364 1.36
Dow Jones Edges Higher; Gold Loses 0.4%

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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