Daily Review for August 05, 2021
The British pound against the U.S. dollar is rising in anticipation of the Bank of England’s interest rate decision.
Moderna reports results today. Robinhood shares continue to rise. Nasdaq 100 is rising. Possible correction sooner than later.
The FED announced the possibility of tapering its fixed income purchase package. As a result, the price of gold fell towards the USD$1,809 mark.
German manufacturing orders rose 4.1% in June 2021. The market is waiting for the ECB economic bulletin and the BoE decision to set the trend. Sideways movement of the index for the moment.
Traders analyze the best momentum ahead of the NFP.
Today Ethereum will present its platform update.
| GBPUSD +0.06% |
| Important day for the UK market. The Bank of England will take its interest rate decision. The market expects rates to remain unchanged at 0.10%. In this regard, 8 votes in favor of keeping rates unchanged are expected. The Bank of England will also present its inflation report. Economists expect the Bank to maintain its monetary and fiscal policy, keeping the current levels of Quantitative Easing. At the moment the GBPUSD is up 0.06% and is trading at 1.3889. Glencore will present its results today. |
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| Support 1: 1.3890 Support 2: 1.3889 Support 3: 1.3888 Resistance 1: 1.3893 Resistance 2: 1.3895 Resistance 3: 1.3896 Pivot Point: 1.3892 |
| The price is at the same level of the 200-day moving average. Sideways movement is expected before the BoE announcement. Expected trading range between 1.3888 and 1.3896. Pivot point at 1.3892. RSI neutral. |
| NASDAQ 100 +0.05% |
| Moderna reports results today. The market expects EPS of 5.96, and Operating Income of USD$4.21 Billion, mainly driven by the volume of vaccines sold to fight the pandemic. The stock is trading in the pre market at USD$419.90. At the moment the index is up 0.05% and is trading at 15,087. The Nasdaq 100 could show some upward movement before stocks like Robinhood start to correct the rally. |
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| Support 1: 15,090.0 Support 2: 15,085.0 Support 3: 15,077.6 Resistance 1: 15,102.4 Resistance 2: 15,109.8 Resistance 3: 15,114.8 Pivot Point: 15,097.4 |
| The price is above the 200-day moving average. The Ichimoku cloud projects the price between 14,973 and 15,075 points. Pivot point at 15,097. RSI neutral. Bulls maintain target at 15,144. |
| GOLD -0.11% |
| Gold prices showed a significant pullback yesterday. After reaching USD$1,831 per Troy ounce, the price of gold fell to the actual level of USD$1,809. The main reason for the metal’s fall was the announcement that the FED could begin to reduce its purchases of fixed income instruments, which would reduce the level of liquidity in the market, leading inflation to decrease, so the price of gold as a hedge against inflation, was impacted. At the moment the price of gold is down 0.11% and is trading at USD$1,809 per Troy ounce. |
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| Support 1: 1,810.10 Support 2: 1,809.15 Support 3: 1,807.30 Resistance 1: 1,812.90 Resistance 2: 1,814.75 Resistance 3: 1,815.70 Pivot Point: 1,811.95 |
| The Bulls are trying to defend the USD$1,800 mark. Sideways swings, while the price marks a trend. If the current support is broken, the price could drop towards USD$1,795. If, on the other hand, it manages to bounce from the current level, the metal could head towards USD$1,820. |
| DAX 30 -0.01% |
| German manufacturing orders rose 4.1% in June 2021, exceeding market expectations of 1.9%. Despite this, the index remains in negative territory, currently down 0.01%. The market is now paying attention to the German construction PMI and the ECB economic bulletin. Traders in Europe are focused on the BoE’s interest rate decision. Volatility following the decision could impact the European stock markets. |
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| Support 1: 15,680.4 Support 2: 15,671.7 Support 3: 15,664.9 Resistance 1: 15,695.9 Resistance 2: 15,702.7 Resistance 3: 15,711.4 Pivot Point: 15,687.2 |
| Price is above the 200-day moving average. Expected trading range between 15,664 and 15,711. Pivot point at 15,687. RSI neutral. If the economic data is good as well as the ECB statement, the index could climb towards 15,750. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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