Daily Review for February 2, 2021
UK traders aware of BP results. FTSE 100 tries to recover some losses
EURUSD neutral until the EU GDP data is published. If the data surprises, we may see a rebound in the currency
Gold continues to be pressured by the fall in silver. Traders expect the metal to drop to the 1,800 support before they start buying
Wall Street indexes are rising. Yesterday’s battle was won by hedge funds, due to the correction of Silver and Gamestop
| FTSE 100 +0.41% |
| Global markets recovered part of the losses from last week close. Meanwhile, the FTSE 100 is awaiting the results of British Petroleum, BP. The index is currently trading at 6,440 and is up 0.41%. Analysts estimate BP’s 4Q 2020 revenue at $52.15B. |
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| Support 1: 6.453,0 Support 2: 6.448,6 Support 3: 6.441,2 Resistance 1: 6.464,8 Resistance 2: 6.472,2 Resistance 3: 6.476,6 Pivot Point: 6.460,4 |
| The index is currently at December 2020 levels. The price has moved below the 61.8% Fibonacci retracement level. It is entering into the Ichomoku cloud. Expected trading range between 6,441 and 6,476. Pivot point at 6,460. |
| EURUSD +0.09% |
| The currency is currently up 0.09% and is trading at 1.2072. Traders are waiting for the GDP data from the European Union. Economists estimate the GDP (value of all goods and services in an economy for a given period) for 4Q 2020 to be 12.7%. Yesterday, Markit released good manufacturing PMI data in the EU. Finally, tomorrow, we will have monetary policy announcements from the ECB. |
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| Support 1: 1.2145 Support 2: 1.2011 Support 3: 1.1911 Resistance 1: 1.2239 Resistance 2: 1.2336 Resistance 3: 1.2409 Pivot Point: 1.2083 |
| The currency is below the 25 and 15 day moving average. It is currently below the Ichmoku cloud. The currency is trying to recover from yesterday’s fall, and traders are looking to take positions ahead of the EU GDP data. Bullish outlook if EU GDP surprises the market. |
| XAUUSD -0.73% |
| The price of gold has managed to hold above the support of 1,850, but at the moment due to the volatility of the market it is under pressure and could reach levels of 1,830. Gold is currently down 0.73% and silver is down 4.90%. Gold is falling on the silver selloff. However, historically gold exercises authority over the price of silver, so we could see a major correction in silver, before resuming a period of consolidation. |
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| Support 1: 1,839 Support 2: 1,790 Support 3: 1,764 Resistance 1: 1,898 Resistance 2: 1,918 Resistance 3: 1,956 Pivot Point: 1,863,09 |
| Gold is forming a shoulder head shoulder pattern. The price is close to break the support at 1,843, which could lead to a drop to the next support at 1,832. The bears are waiting for this opportunity to sell gold to 1,760. Pivot point in 1.863. |
| S&P 500 +0.81% |
| Wall Street indexes are currently rising, and the S&P500 is rising 0.81%, trading at 3,793. The capital injection from the Central Bank of China managed to save the Asian session since yesterday. The war between retail traders and hedge funds had a mixed approach yesterday. Retailers initially attacked Silver, AMC, Ripple and held bullish positions in Gamestop. The Hedge Funds sold silver and Gamestop, winning yesterday’s battle, causing both assets to show significant declines. |
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| Support 1: 3,781.96 Support 2: 3,779.04 Support 3: 3,777.08 Resistance 1: 3,786.84 Resistance 2: 3,788.80 Resistance 3: 3,791.72 Pivot Point: 3,783.92 |
| At the moment the index is heading for the resistance of 3,823. Bulls are targeting the next resistance at 4,000 points. If the first resistance is not broken, the index may fall to the 3,706 support. Pivot point at 3,783. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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