Daily Review for April 7, 2021
EURUSD recovers the 1.1800 area and looks to generate additional upside. The market is awaiting Fed’s inflation analysis.
Market opens positive in Europe; however, the delay of vaccines, and the cancellation of Moderna on orders from Germany, cause concern.
Market analysts expect a possible contagion effect from Archegon and Credit Suisse.
Gold in bullish outlook. Traders are cautiously analyzing the effect of the FED minutes on the price of the metal.
S&P 500 continues to set new all-time highs. UBS forecasts the index with further gains driven by the stock market rally following the economic recovery.
| EURUSD +0.04% |
| Today we will have PMI data in Europe, an important indicator to analyze market supply. Meanwhile, the EURUSD is up 0.04% and is trading at 1.1879. The market is expecting a Markit PMI for the Euro Zone at 52.5 (Expansion) and a services PMI at 48.8. Market players are also aware of the Fed minutes, which will be released today, and are expected to be focused on inflation. Long-term bond yields started to decline. |
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| Support 1: 1.1871 Support 2: 1.1867 Support 3: 1.1864 Resistance 1: 1.1877 Resistance 2: 1.1879 Resistance 3: 1.1883 Pivot Point: 1.1873 |
| Price is at resistance 1. Bullish trend. Significant buying volume. RSI is at the overbought level; possible correction towards support 1. Pivot point at 1.1873. |
| DAX 30 +0.12% |
| The German index entered a sideway and is reacting to the reduction of 880,000 Moderna vaccines that were cancelled by the company, due to delays in its production. On the other hand, analysts estimate that the European Medicine Agency will announce soon that the blood clots are directly related to AstraZeneca’s vaccine. The two previous factors are creating pressure in the European market. The market is also aware to the Credit Suisse contagion effect. |
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| Support 1: 15,207.4 Support 2: 15,197.2 Support 3: 15,191.4 Resistance 1: 15,223.4 Resistance 2: 15,229.2 Resistance 3: 15,239.4 Pivot Point: 15,213.2 |
| Sideway trend. The price is entering into the Ichomoku cloud, where a trading range is estimated between 15,236 and 15,190. Pivot point at 15.213. RSI neutral. The price is above the moving average of the last 14 days. |
| GOLD -0.07% |
| Gold traders are aware of the FED inflation analysis. During the Asian session, the price of gold was in an uptrend and consolidated above the USD$1,741 level. Wall Street economists expect the FED and the ECB to raise interest rates as a result of the early than expected economic recovery. |
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| Support 1: 1,737.59 Support 2: 1,736.62 Support 3: 1,735.44 Resistance 1: 1,739.74 Resistance 2: 1,740.92 Resistance 3: 1,741.89 Pivot Point: 1,738.77 |
| Bulls keep the momentum and push the price towards 1,746. Bullish trend, until the market revise the FED minutes. If they do not convince the market, we could see moves towards 1,750 – 55. Pivot point at 1,738.77. Trading range between 1,735 and 1,741. |
| S&P 500 +0.07% |
| The index remains above the 4,000 points mark and according to UBS economists, the index still has room to grow. The basis for the analysis is the historical performance of the index in periods of record highs, bond yields and the rally in equities following the economic recovery from the pandemic. The medium-term forecats is 4,500 points. |
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| Support 1: 4,064.72 Support 2: 4,063.05 Support 3: 4,061.22 Resistance 1: 4,068.22 Resistance 2: 4,070.05 Resistance 3: 4,071.72 Pivot Point: 4,066.55 |
| The price is above the Ichimoku Cloud and the 14-day moving average. Sideway stage, as more volatility is created. Significant buying volume evidenced during the Asian session. RSI neutral, so the uptrend remains. |
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