Daily Review for June 07, 2021
Following the NFP data Global markets opens in red.
Wall Street futures in negative, mainly due to tapering and Janet Yellen’s announcement that an interest rate hike is expected.
Europe launches the covid passport as a measure to open borders to vaccinated tourists.
China continues to put pressure on cryptos. Bitcoin is trading in USD$35,000.
Possible change of trend in gold. Pressure on cryptos and equities correction awakes traders’ interest in gold, silver and copper.
In the UK, house prices rose 1.3% in May compared to April 2021.
Despite the tightening of borders, scientists continue to analyze new variants of the coronavirus.
G7 leaders have agreed to a minimum corporate tax proposal of 15% globally.
| DOW JONES -0.12% |
| Week begins and global stock markets are in negative territory. This as a consequence of the NFP data, which failed to meet or exceed market expectations. The report showed 559,000 new non-farm jobs, vs. 650,000 expected by the market. On the other hand, the US unemployment rate came in at 5.8% vs. the 5.9% expected by the market. Thus, the Dow Jones starts the week down 0.12%. |
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| Support 1: 34,704.6 Support 2: 34,692.3 Support 3: 34,676.1 Resistance 1: 34,733.1 Resistance 2: 34,749.3 Resistance 3: 34,761.6 Pivot Point: 34,720.8 |
| Price is at resistance 1, looking for the 34,745 level. The Ichimoku cloud forecasts a trading range between 34,676 and 34,761. Pivot point at 34,720. RSI neutral. |
| DAX 30 -0.27% |
| In Europe, the markets opened in negative territory. The DAX 30 is currently down 0.27% and is trading at 15,648. Today, the European Union launched the Covid passport initiative, which opens the borders for vaccinated tourists in Europe. That, with the purpose of reactivating the different economic sectors that have been most affected by the pandemic. In the meantime, analysts are aware of tapering by the ECB and the FED. |
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| Support 1: 15,655.0 Support 2: 15,649.0 Support 3: 15,644.5 Resistance 1: 15,665.5 Resistance 2: 15,670.0 Resistance 3: 15,676.0 Pivot Point: 15,659.5 |
| Expected trading range between 15,644 and 15,676. Pivot point for trend change at 15,659. RSI neutral. Possible sideways movement towards 15,616. Bulls look to defend this mark. |
| EUROSTOXX 50 -0.49% |
| The market continues to correct globally, mainly due to the reduction of economic stimulus measures and a higher probability that the ECB and the FED will raise interest rates. Treasury Secretary Janet Yellen commented that Biden’s spending plan should be accompanied by higher interest rates in order to control inflation. Comment that is being reflected in European markets. At the moment, the Eurostoxx 50 is down 0.49%. |
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| Support 1: 4,083 Support 2: 4,079 Support 3: 4,077 Resistance 1: 4,089 Resistance 2: 4,091 Resistance 3: 4,095 Pivot Point: 4,085 |
| Expected trading range between 4,077 and 4,095. Pivot point at 4,085. RSI neutral. Price is between support 1 and support 2. Possible sideways movement above 4,075. |
| GOLD -0.40% |
| Gold price starts the week with a decrease of 0.40%. It is currently trading at USD$1,881.24 per Troy ounce. After the NFP result, the gold price reached the USD$1,900 resistance. During the Asian session, it descended towards the support 1, and is currently above the pivot point, where a change of trend could be evident. On the other hand, China’s pressure on the crypto market continues. This could lead to increase investors interest in gold and silver. |
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| Support 1: 1,884.90 Support 2: 1,883.25 Support 3: 1,881.90 Resistance 1: 1,887.90 Resistance 2: 1,889.25 Resistance 3: 1,890.90 Pivot Point: 1,886.25 |
| Expected trading range between 1,881 and 1,890. Pivot point at 1,886. RSI neutral. If there is a change in trend, the price could climb towards the resistance 1 and then to the 1.913 mark. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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