Daily Review for August 30, 2021
The FED stated that tapering could begin this year, but that interest rate hikes are not contemplated in the short term.
OPEC+ will meet on September 1, 2021, where they will evaluate the current level of production. The analysis is focused on maintaining or modifying the plan to gradually increase production.
European markets open in positive territory. U.S. stock indexes also remain positive.
Traders in Europe are aware of the inflation data in Spain and Germany. Likewise, the market is expecting ECB announcements and German elections.
Gold broke above the resistance of USD $ 1,800. Traders are taking profits, but keep the metal on the radar, with an eye on the NFP.
| CRUDE OIL -0.58% |
| The week begins with mixed movements in commodities. At this moment the price of crude oil is falling 0.58%, and is trading at USD$68.38 per barrel. OPEC+ had decided to increase production from August 2021. During the month, the delta variant generated pressure on demand, however, domestic consumption in the United States helped to keep prices close to USD$70 per barrel. The cartel will hold its next meeting on September 1, where members will evaluate whether or not to maintain the strategy of gradually increasing production. On the other hand, tomorrow is the deadline of evacuations in Afghanistan. |
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| Support 1: 68.30 Support 2: 68.15 Support 3: 67.97 Resistance 1: 68.63 Resistance 2: 68.81 Resistance 3: 68.96 Pivot Point: 68.48 |
| The price reached USD$69 at resistance 2, and began to descend towards the pivot point, which could generate a change of trend. The ascending channel is maintained. The RSI is in neutral zone. Pivot point at USD$68.48. |
| DOW JONES +0.02% |
| Fed Chairman Jerome Powell announced on Friday that the bank is interested in starting tapering in 2021, but is not planning to raise interest rates in the short term. This created an upward movement in all market assets globally. For its part, the Dow Jones is once again on course to reach 36,000 points. It is currently up 0.02% and is trading at 35,463. Today, traders are aware of the U.S. Pending Home Sales data, which is an important indicator to evaluate the performance of the economy. |
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| Support 1: 35,462.5 Support 2: 35,454.7 Support 3: 35,444.0 Resistance 1: 35,481.0 Resistance 2: 35,491.7 Resistance 3: 35,499.5 Pivot Point: 35,473.2 |
| The price is at resistance 1. If the Bulls manage to overcome this level, the next target to reach is 35,625. Otherwise, a triple top would be formed, which would generate a decline towards 35,105 points. Trading range between 35,444 and 35,499. Pivot point at 35,473. |
| EUROSTOXX 50 +0.11% |
| Stock indices in Europe open in green. Today, inflation data will be released in Spain and Germany. The ECB will also announce its analysis of the European Union economy. At the moment, the EuroStoxx50 is up 0.11% and is trading at 4,191. In Germany, traders are keeping an eye on the elections. On September 26, a new parliament will be elected. In the meantime, the German automotive industry continues with the plan to fully transition to electric vehicles. |
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| Support 1: 4,165 Support 2: 4,153 Support 3: 4,133 Resistance 1: 4,205 Resistance 2: 4,220 Resistance 3: 4,232 Pivot Point: 4,180 |
| Price is at resistance 1, where it has an important level to overcome at 4,193. Expected trading range between 4,133 and 4,232. Pivot point for trend change at 4,180. RSI coming out of the overbought zone. If the inflation data exceeds market expectations, the price could reach 4,232. |
| GOLD -0.13% |
| Gold reached again the USD$1,800 per Troy ounce zone. At the moment the price is down 0.13% and is trading at USD$1,816. Actual decline is due to traders’ resting and profit taking after last week’s stress. Similarly, gold could be an asset of interest this week, as the NFP report is due on Friday. In this case, traders and investment funds continue to be interested in having gold in their portfolios. |
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| Support 1: 1,816.75 Support 2: 1,815.55 Support 3: 1,813.45 Resistance 1: 1,820.05 Resistance 2: 1,822.15 Resistance 3: 1,823.35 Pivot Point: 1,818.85 |
| The price reached USD$1,823 and is currently at resistance 1. If it continues to decline, the next level is the pivot point, where it could rebound and return to the uptrend. Expected trading range between USD$1,813 and USD$1,823. Pivot point at USD$1,818. RSI neutral, leaving the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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