Daily Review for April 8, 2021
Crude oil inventories continue to decline in the U.S. As a sign of recovering demand, gasoline and distillate inventories increase.
European market with bullish outlook despite doubts about AstraZeneca’s vaccine.
EuroStoxx 50 heads towards 4,000 points. Traders continue to analyze Credit Suisse contagion in the market.
Wall Street futures are up, with major long moves in Nasdaq 100. Traders are looking forward to Jerome Powell’s speech as FED Chairman.
Euro continues in the upward channel driven by the good prospects of economic recovery by the IMF.
| CRUDE OIL -0.82% |
| According to the EIA, crude oil inventories in the United States decreased by 3.5 million barrels. Meanwhile in the API report, gasoline and distillate inventories increased, which is a sign of demand recovering. Meanwhile, the price of crude oil is down 0.82% and is trading at USD$59.16 per barrel. |
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| Support 1: 59.27 Support 2: 59.19 Support 3: 59.08 Resistance 1: 59.46 Resistance 2: 59.57 Resistance 3: 59.65 Pivot Point: 59.38 |
| Since OPEC+ announced production increase from May 2021, crude oil prices have been in downtrend. The price recovered a few points from the 58.25 support. It is currently sideway as the Ichimoku cloud. Bulls are looking to regain USD$60 per barrel. Trading range between 59.08 and 59.65. Pivot point at 59.38. |
| EURO STOXX 50 +0.26% |
| In Europe, index futures are rising despite doubts generated by the FED minutes on economic recovery. Its strategy is focused on an accommodative monetary policy. The Euro Stoxx 50 is up 0.26% and is trading at 3,918. In Europe, governments are taking different positions on AstraZeneca’s vaccine. The UK, for its part, announced that the vaccine is not recommended for people under 30 years of age. Italy, France and Germany are only recommending it for people over 60 years of age. Today we will have announcements from the ECB on monetary policy. |
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| Support 1: 3,924 Support 2: 3,921 Support 3: 3,920 Resistance 1: 3,928 Resistance 2: 3,929 Resistance 3: 3,932 Pivot Point: 3,925 |
| Bulls’ target is 4,000 points. Bullish trend. The price is between resistance 1 and 2. It is also above the Ichimoku cloud and the 14-day moving average. RSI neutral but entering the overbought zone. Trading range between 3.928 and 3.932. |
| DOW JONES +0.18% |
| The industrial index is currently up 0.18% and traders are looking ahead to Jerome Powell’s speech today. In the minutes, the FED stated that it is committed to the economic recovery, so it will manage an accommodative monetary policy. The stocks with the largest gains were JP Morgan +1.57%, Apple +1.34%, and Intel +1.05%. The stocks with the biggest losses were Disney -1.14%, Boeing -1.02% and Dow -0.94%. Traders are looking forward to corporate results for Q1 2021. |
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| Support 1: 33,387.4 Support 2: 33,357.2 Support 3: 33,339.4 Resistance 1: 33,435.4 Resistance 2: 33,453.2 Resistance 3: 33,483.4 Pivot Point: 33,405.2 |
| The index remains at all-time highs. The price is trying to overcome resistance 1, to head towards 33,500 points. Important level at resistance 2. Trading range between 33,339 and 33,483. Sideway trend. |
| EURUSD +0.13% |
| The currency is still in a recovery phase and is beginning to mark an upward channel towards the 1.1900 level. It is currently up 0.13%. Increased confidence on economic recovery in the market and the IMF’s bullish projections have contributed to the currency’s recovery. Today we will have Powell’s speech, where he will present the central bank’s analysis on inflation. The FED main target is to not overheat the economy. |
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| Support 1: 1.1872 Support 2: 1.1862 Support 3: 1.1857 Resistance 1: 1.1886 Resistance 2: 1.1892 Resistance 3: 1.1901 Pivot Point: 1.1877 |
| Short-term uptrend. Expected trading range between 1.1857 and 1.1901. The price is at the level of resistance 1. If the price manages to overcome it, the next target is 1.1892. Pivot point at 1.1877. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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