Daily Market Report: October 12, 2021

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October 12, 2021

Gold down; Oil prices cool after seven-year highs

US Stock Market

Last: 34,554

Pivot: 34,770

Review:

US stocks ended a choppy session lower on Monday as investors grew nervous ahead of third-quarter earnings reporting season.

Technical comment:

the RSI lacks upward momentum.

Preference scenario:

A sell opportunity could arise if the price falls below 34770, with the next targets at 34415 and 34200 in extension.

Alternative scenario:

For a breakout above the 34770 mark, look for a further upside with 34950 and 35100 as targets.

Resistance 34,770 34,950 35,100
Support 34,415 34,200 33,985
Gold down; Oil prices cool after seven-year highs
USDCAD

Last: 1.2482

Pivot: 1.2452

Review:

tHE Canadian markets were closed for a holiday, but the loonie touched a two-month high of C$1.24465 thanks to surprisingly strong Canadian payrolls data released on Friday, and lofty oil prices.

Technical comment:

the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.2466 and 1.2464).

Preference scenario:

In terms of appreciation, the upside prevails as long as 1.2452 is support.

Alternative scenario:

Should the price fall below 1.2452, expect the next targets to be at 1.2423 and 1.2406.

Resistance 1.2519 1.2536 1.2553
Support 1.2452 1.2423 1.2406
Gold down; Oil prices cool after seven-year highs
Gold

Last: 1,755.08

Pivot: 1,763

Review:

Gold traded at a lower rate than the previous day, closing at 1755.08.

Technical comment:

the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Gold is trading under both its 20 and 50 period moving average (respectively at 1755.70 and 1756.30).

Preference scenario:

With regards to predicted depreciation, the downside prevails as long as 1763 is resistance.

Alternative scenario:

In the event of an upside breakout of 1763, it would call for 1772 and 1777.50 as targets.

Resistance 1,763 1,772 1,777.5
Support 1,738.5 1,733 1,727.5
Gold down; Oil prices cool after seven-year highs
Oil

Last: 80.5

Pivot: 81.3

Review:

Crude oil prices were higher early Monday in New York but came off the seven-year highs posted overnight, on a rare sign of spot market slackness in the key Middle East region.

Technical comment:

technically the RSI is below its neutrality area at 50.

Preference scenario:

For a price dip below the 81.30 mark, traders may look for a further downside with targets at 79.65 and 78.65 in extension.

Alternative scenario:

For a price climb above 81.30, look for a further upside with 82.15 and 83.00 as targets.

Resistance 81.3 82.15 83
Support 79.65 78.65 78
Gold down; Oil prices cool after seven-year highs
EURUSD

Last: 1.1557

Pivot: 1.1581

Review:

EURUSD traded lower, with the closing rate standing at 1.1557.

Technical comment:

the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 1.1566 and 1.1569).

Preference scenario:

In the case of a negative movement, the downside prevails as long as 1.1581 is resistance.

Alternative scenario:

With a potential upside breakout of 1.1581 being the case, it would call for 1.1608 and 1.1623.

Resistance 1.1581 1.1608 1.1623
Support 1.1524 1.1509 1.1493
Gold down; Oil prices cool after seven-year highs
GBPUSD

Last: 1.3607

Pivot: 1.363

Review:

The British pound had risen in early London trading on growing expectations the Bank of England could raise interest rates to curb inflation, but faded later in the session over energy price concerns, last down 0.08% at $1.3607.

Technical comment:

the RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.3621 and 1.3629).

Preference scenario:

If there is a decline in the price, the downside prevails as long as 1.3630 is resistance.

Alternative scenario:

In the case of a price increase above 1.3630, look for targets at 1.3656 and 1.3671 in extension.

Resistance 1.363 1.3656 1.3671
Support 1.3572 1.3557 1.3541
Gold down; Oil prices cool after seven-year highs

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