Daily Review for January 26, 2021
The market awaits the performance of US companies, mainly technology companies
Cases of coronavirus in Europe cause EURUSD correction
In the UK, traders analyze positions in Shell. The company’s business plan is moving towards a more sustainable environment
GBPUSD awaits UK employment data
| S&P 500 -0.59% |
| The index continues to correct. It is currently falling 0.59% and is trading at 3,825. The Bulls are holding the index above the 3,500 support level. Technology companies recovered the market yesterday, due to traders’ long positions on major companies reporting results such as Apple, Microsoft, Tesla, Facebook, among others. The market is also awaiting this week’s Fed meeting and virtual Davos. |
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| Support 1: 3,824.12 Support 2: 3,821.87 Support 3: 3,819.12 Resistance 1: 3,829.12 Resistance 2: 3,831.87 Resistance 3: 3,834.12 Pivot Point: 3,826.87 |
| Bulls are holding the price above 3,500 and targeting 4,000. If this target is achieved, the next resistance is the 161.8% Fibonacci level at 4,006. Main resistance for this advance is the current level of 3,800. Major support at 3,765. Pivot Point in 3,826. |
| EURUSD -0.15% |
| Yesterday the currency had an interesting rally. It is currently trading at 1.2127 and is down 0.15% from yesterday’s close. The currency is waiting for the FED interest rate decision to present a trend. Analysts expect the interest rate will remain unchanged and the FED will maintain the current monetary policy strategy. On the other hand, the increase of coronavirus cases in Europe is affecting the currency. |
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| Support 1: 1.2110 Support 2: 1.2079 Support 3: 1.2010 Resistance 1: 1.2178 Resistance 2: 1.2213 Resistance 3: 1.2281 Pivot Point: 1.2146 |
| The currency is forming a shoulder head shoulder pattern with a rising channel. However, bears are pointing to 1.2050 support. Expected trading range between 1.2010 and 1.2281. Pivot point at 1.2146. |
| FTSE 100 -0.10% |
| The FTSE 100 is currently trading at 6,632 and is down 0.10% from yesterday’s close. Traders are watching Shell’s acquisition of Ubitricity, the UK’s largest charging station company. Traders are also analyzing today’s results from General Electric and J&J. |
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| Support 1: 6,590.5 Support 2: 6,586.2 Support 3: 6,581.2 Resistance 1: 6,599.8 Resistance 2: 6,604.8 Resistance 3: 6,609.1 Pivot Point: 6,595.5 |
| The index formed a downward channel and is above the 23.6% Fibonacci level. The price is also below the 25-day and 50-day moving averages. The RSI is falling. The bears are pointing to the 6,610 support. |
| GBPUSD -0.30% |
| At the moment the Sterling Pound against the USD is down 0.30% and is awaiting the UK unemployment data. Market analysts expect the unemployment rate to rise from 4.9% to 5.1%. Traders are watching US interest rates, which may affect the appreciation or depreciation of the USD. |
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| Support 1: 1.3641 Support 2: 1.3607 Support 3: 1.3531 Resistance 1: 1.3716 Resistance 2: 1.3757 Resistance 3: 1.3833 Pivot Point: 1.3681 |
| Trading range is getting tighter, indicating that the currency is entering a period of increased volatility. The price is below the 25-day and 15-day moving averages. If the UK employment data is favorable, the currency could rise. If they are not favorable, the BOE is likely to move the interest rate, which would depreciate the currency. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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