Daily Review for April 5, 2021
Traders are aware of market’s reaction to the surprising NFP data and the good unemployment data in the US.
European markets are closed today. However, traders are trading Wall Street futures.
In Asia, the market is in green and reflects the rally that could be today on Wall Street.
Increased production wells in the U.S. generate discounts in the price of crude oil.
Euro with downward pressure due to the appreciation of the USD.
Gold with downward pressure due to the rally in equities.
Today we will have the non-manufacturing PMI data in the US, as a supply indicator.
| NASDAQ 100 +0.09% |
| The market starts with positive movements in Wall Street indexes. Nasdaq 100 is up 0.09% and is trading at 13,330 points. Today the market could have a continuity of upward movements, generated by the good NFP data last Friday (+916,000) and by an unemployment rate in the USA that remained at 6%. Let’s remember that last week ended with the Easter holiday, which meant that most of the markets were closed. Today, European markets are closed. So investors are focused on US indexes. |
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| Support 1: 13,321.25 Support 2: 13,315.50 Support 3: 13,308.75 Resistance 1: 13,333.75 Resistance 2: 13,340.50 Resistance 3: 13,346.25 Pivot Point: 13,328.00 |
| Nasdaq is continuing its upward channel. The price is just below the 14-day moving average. RSI is entering the overbought zone. Bulls set the weekly target at 14,000. Bears are looking for sideways. Pivot point at 13,328. |
| CRUDE OIL -1.24% |
| Crude oil price starts the week in negative territory. It is currently down 1.24%. The price is falling due to the increase of wells in the USA. Last week, 14 new productive wells started activity. Meanwhile, OPEC+ maintains the supply side strategy, hoping that economic recovery and vaccinations will happen quickly, so that prices can wait for a rebound in demand. In the US, producers want to start selling as much as they can before companies feel Biden’s regulation of the industry. |
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| Support 1: 60.61 Support 2: 60.51 Support 3: 60.32 Resistance 1: 60.90 Resistance 2: 61.09 Resistance 3: 61.19 Pivot Point: 60.80 |
| The price is below the moving average. It is looking to climb to resistance 1. If it succeeds, the next target is 61.67. Pivot point at 60.80. RSI is neutral. |
| EURUSD -0.12% |
| The Euro against the USD continues to be pressured by the good NFP data in the US (the market expected an increase of 468,000; the result exceeded expectations and reached 916,000). In Europe, the currency is also pressured by the increase of covid-19 cases. The good unemployment data in the US strengthens the USD against the EUR. Therefore, today’s currency decline. |
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| Support 1: 1.1746 Support 2: 1.1742 Support 3: 1.1738 Resistance 1: 1.1754 Resistance 2: 1.1758 Resistance 3: 1.1761 Pivot Point: 1.1750 |
| The price is just above support 1. If it manages to defend that area, the Ichomoku cloud projects the price towards 1.1765. If this level is reached, resistance 1 would be the next target. On the other hand, if the downward channel continues, the next level could be support 3. |
| GOLD -0.04% |
| Price of metals, mainly those used for hedging such as gold, may show downward pressure today, mainly due to the NFP data and the unemployment rate in the USA. The price is currently down 0.04%. The good NFP data is making the FED evaluate the interest rate hike, as it is a sign that the economy is recovering faster than expected, and therefore, it may generate inflationary effect in the short term. |
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| Support 1: 1,723.05 Support 2: 1,719.85 Support 3: 1,718.05 Resistance 1: 1,728.05 Resistance 2: 1,729.85 Resistance 3: 1,733.05 Pivot Point: 1,724.85 |
| Price is between support 1 and resistance 1. Expected trading range between 1,718 and 1,733. Price is close to the Pivot Point at 1,724, where we could see trend reversal. If the Bears win, we could see the price back above the 1,700 support. |
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