Daily Review for February 8, 2021
Market opens higher. European indexes continue Friday’s rally. Elon Musk boosts the price of Dogecoin again (+16%)
Traders assess the impact on the DAX 30 of the industrial production data in Germany
In Europe, traders are watching the Sentix index
Gold manages to stay above 1,800 and is entering a consolidation phase above 1,810
EURUSD is looking to stay above the level of 1.20 and 1.21. For now, it is struggling above 1.2026 support
Crude oil is heading towards USD$60 per barrel. The OPEC+ production cut has had a good effect on the price. Traders are watching for upward momentum
| DAX 30 +0.70% |
| The German index broke the 14,000 resistance and continues to rally. It is currently trading at 14,136 points and is up 0.70%. Over the weekend, Treasury Secretary Janet Yellen announced that if Jose Biden’s economic stimulus plan is implemented, the U.S. could reach full employment next year. Globally, stock markets start the day mostly in green. Today, the Sentix Index, which measures investor confidence in the Euro Zone, will be released. Traders are also watching the German industrial production data. |
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| Support 1: 14,144.1 Support 2: 14,138.3 Support 3: 14,131.1 Resistance 1: 14,157.1 Resistance 2: 14,164.3 Resistance 3: 14,170.1 Pivot Point: 14,151.3 |
| New all-time high for the DAX at 14,140 points. If the Bulls take profits, the support to watch is 14,100 points. Expected trading range between 14,131 and 14,170. Pivot point at 14,151. |
| GOLD +0.08% |
| Gold prices showed an interesting rebound on Friday, following a lower NFP than expected by the market, and a better unemployment rate in the US. In terms of trading volume, today there have been buying movements above the level of 1,808, which has caused the price to rise 0.08% at the moment. Gold is trading at 1,814. In the global market, investors are gaining confidence due to less contagion data and the progress of vaccines. |
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| Support 1: 1,814.00 Support 2: 1,812.95 Support 3: 1,811.05 Resistance 1: 1,816.95 Resistance 2: 1,818.85 Resistance 3: 1,819.90 Pivot Point: 1,815.90 |
| Expected trading range today between 1,811 and 1,819. Pivot point at 1,815. Gold prices could start a consolidation phase as traders set new trends. For now, investors are keeping an eye on global deliveries and vaccination programs. |
| EURUSD -0.06% |
| EURUSD is currently down 0.06% and is trading at 1.2038. According to Commerzbank, the currency could reach the 1.1750 level this week. Meanwhile, the European market is watching this week’s corporate results, mainly from AstraZeneca; they are also awaiting the US stimulus plan, US inflation data, UK GDP data, and Mario Draghi’s government plan. |
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| Support 1: 1.2031 Support 2: 1.2022 Support 3: 1.2013 Resistance 1: 1.2048 Resistance 2: 1.2058 Resistance 3: 1.2066 Pivot Point: 1.2040 |
| The price of the currency is close to the Fibonacci support at 1.1945. Bulls keep the target at 1.2085. The next resistance is 1.2129. In the worst case scenario, the currency could reach the 38.2% retracement level at 1.1695. Pivot point at 1.2040. |
| CRUDE OIL +1.35% |
| Price of crude oil is rallying due to the announcements of possible additional production cuts by OPEC+ and the optimism generated in the market by the economic stimulus package in the US. Crude oil is currently trading at USD$57.64 and is up 1.35%. The price is heading towards USD$60 per barrel. |
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| Support 1: 57.42 Support 2: 57.24 Support 3: 57.15 Resistance 1: 57.69 Resistance 2: 57.78 Resistance 3: 57.96 Pivot Point: 57.51 |
| Crude oil is maintaining the upward momentum and is heading towards the next resistance at 57.96. If it manages to break this, the next level is 60. Bulls keep the strategy focused on the market recovery after the pandemic crisis. Expected trading range between 57.15 and 57.96 with pivot point at 57.51. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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