Daily Review for July 01, 2021
ADP report reported a non-farm payroll employment gain of 692,000 over the market estimate of 600,000. Analysts and traders are now looking ahead to tomorrow’s NFP, where the market expects 700,000 new non-farm jobs.
Wall Street in an interesting rally originated by the economic optimism and corporate results.
Traders are aware on OPEC+ meeting. The decision on production increase could be overshadowed by the Delta variant.
ECB presents economic outlook. EURUSD remains sideways.
Commodities from agricultural, industrial and energy rally again confirming a new super cycle.
| S&P500 +0.19% |
| S&P500 reached all-time highs on the back of good expectations for corporate earnings on Wall Street. Analysts expect companies to recover in a V-shape curve, which could lead to double-digit earnings growth. The S&P500 continues to rise, currently up 0.19% and is trading at 4,297. Traders are keeping an eye on the US non-farm employment data, and thus evaluating directional scenarios for the indices. |
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| Support 1: 4,294.88 Support 2: 4,293.88 Support 3: 4,292.88 Resistance 1: 4,296.88 Resistance 2: 4,297.88 Resistance 3: 4,298.88 Pivot Point: 4,295.88 |
| The price is above the Ichomoku cloud. The index is approaching resistance 1 at 4,301. Trading range between 4,292 and 4,298. Pivot point at 4,295. RSI in overbought zone. Possible correction towards 4,289. |
| CRUDE OIL +0.61% |
| Traders are keeping an eye on OPEC+. In a scenario without a Delta variant, the cartel would have started producing more oil, focusing the strategy on increasing demand following the economic recovery. However, the Delta variant is starting to play a major role in the possible market scenarios. An increase in the number of cases globally could force new quarantines. This would affect the industry’s full production capacity, and therefore the demand for crude oil. At the moment, the current crude oil price is at USD$73.94, with an upward movement of 0.65%. |
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| Support 1: 73.62 Support 2: 73.54 Support 3: 73.47 Resistance 1: 73.77 Resistance 2: 73.84 Resistance 3: 73.92 Pivot Point: 73.69 |
| Price is at resistance 1. If long volume continues, price could approach the 74 area. Expected trading range between 73.47 and 73.92. Pivot point at 73.69. RSI neutral. |
| EURUSD +0.01% |
| Traders are looking forward to Christine Lagarde’s press conference as ECB President. At the moment the currency is sideways. The market is now waiting for PMI data from Spain, Italy, France, Germany and Eurozone consolidated. The vaccination campaign in the Euro Zone continues to accelerate, as countries want to hedge the risk of the spread of the Delta variant, which could jeopardize the summer. |
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| Support 1: 1.1842 Support 2: 1.1831 Support 3: 1.1824 Resistance 1: 1.1860 Resistance 2: 1.1867 Resistance 3: 1.1878 Pivot Point: 1.1849 |
| The currency is at support 1. Possible rebound towards the pivot point at 1.1849. Trading range between 1.1824 and 1.1878. RSI neutral. Traders are looking to change the bearish trend that has been present in recent days. |
| SILVER +0.97% |
| Commodities are recovering part of the falls that were generated earlier this week, to confirm the rally signing a new super cycle. In the energy segment, natural gas is posting the biggest gain with +1.86%. In metals, silver is up 0.97%. In agricultural commodities, corn is up 0.89%. Biden’s infrastructure plan favors silver demand because of its industrial usage. Also, traders are trying to buy big volumes in the physical market for immediate delivery, before the Delta variant spread globally. |
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| Support 1: 26,342 Support 2: 26,299 Support 3: 26,255 Resistance 1: 26,429 Resistance 2: 26,473 Resistance 3: 26,516 Pivot Point: 26,386 |
| Price is at resistance 1. If it manages to break the double top at this point, price could head towards 26.43 and 26.72. Trading range between 26.25 and 26.51. Pivot point at 26.38. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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