Daily Review for June 03, 2021
Crude oil prices continue to trend higher on the back of a significant decline in US crude stockpiles.
The S&P500 drops a few points as ADP results are released ahead of tomorrow’s NFP.
Bitcoin managed to defend the USD$37,000 floor. Now the Bulls are pushing for a recovery to USD$40,000.
EURUSD broke the 1.2200 mark. The market is aware of the services PMI data in the Eurozone and the UK.
| CRUDE OIL +0.48% |
| Crude oil price continues the upward channel and is heading towards the USD$70 per barrel mark. At the moment the price is up 0.48% and is trading at USD$69.16. Yesterday, the API’s weekly crude oil stocks report showed a significant decrease in stocks of 5.3 million barrels, exceeding expectations of 2.1 million barrels that were estimated before the report. Today we will have the crude oil inventory report from the IEA. The market is expecting a drawdown of 2.4 million barrels. If the above is confirmed, the price could overcome the USD$70 resistance. |
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| Support 1: 69.21 Support 2: 69.12 Support 3: 69.05 Resistance 1: 69.37 Resistance 2: 69.44 Resistance 3: 69.53 Pivot Point: 69.28 |
| Expected trading range between 69.05 and 69.53. Pivot point at 69.28. RSI moving out of the overbought zone. Possible sideways movement before the inventory report is announced. |
| S&P500 -0.10% |
| Tapering discussions are progressing, and this is being reflected in the market. The S&P500 is currently down 0.10% and is trading at 4,202. Today we will have the “pre”-NFP Non-Farm Payrolls data, called ADP, where the market expects an increase of 650,000 new jobs. If this expectation is met or exceeded, we could see a bullish momentum in Wall Street indices. |
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| Support 1: 4,207.54 Support 2: 4,206.46 Support 3: 4,205.42 Resistance 1: 4,209.66 Resistance 2: 4,210.70 Resistance 3: 4,211.78 Pivot Point: 4,208.58 |
| Price is between resistance 1 and the pivot point. The Ichimoku Cloud marks sideways trend above the level of 4,203. Trading range between 4,205 and 4,211. Pivot point at 4,208. RSI neutral. |
| BITCOIN +5.93% |
| Despite the downward pressure, criticism and restrictions on crypto mining in some countries, Bitcoin has managed to stay above the floor of USD$37,000. It is currently up 5.93% and is trading at USD$38.919. If the momentum continues, the Bitcoin could regain the USD$40,000 mark, a real test level for the weekend. |
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| Support 1: 38,707.5 Support 2: 38,492.1 Support 3: 38,378.5 Resistance 1: 39,036.5 Resistance 2: 39,150.1 Resistance 3: 39,365.5 Pivot Point: 38,821.1 |
| Expected trading range between 38,378 and 39,365. Pivot point at 38,821. RSI in overbought zone. Possible pullback towards 36,700, for then to resume the bullish channel. Bulls are looking to regain USD$40,000. |
| EURUSD -0.20% |
| The currency dropped from the 1.2200 level. At the moment it is down 0.20% and the market is waiting for important economic data that could set the trend. Among them, the Euro Zone services PMI (est. 55.1) and the UK PMI (est. 61.8). Traders are also looking ahead to the ADP data to take positions ahead of tomorrow’s NFP. |
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| Support 2: 1.2178 Support 3: 1.2171 Resistance 1: 1.2193 Resistance 2: 1.2200 Resistance 3: 1.2204 Pivot Point: 1.2189 |
| Price is between support 1 and resistance 1. Trading range between 1.2171 and 1.2204. Pivot point at 1.2189. RSI approaching the oversold zone. Possible rebound towards 1.2218. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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