Daily Review for July 02, 2021
Today 700,000 new non-farm jobs are expected by the market. The NFP will confirm the good economic data evidenced during the week by the U.S. market.
OECD seeks approval and implementation of a 15% minimum corporate tax rate globally.
OPEC+ is hesitant to increase production or not. The Delta variant generates indecision.
Traders start buying gold and selling EURUSD to mitigate portfolio volatility ahead of the NFP.
The S&P500 and Nasdaq 100 give up a few points on the OECD proposal. Traders however, look to validate the week’s rally on the NFP.
| GOLD +0.14% |
| The market is awaiting for the NFP. Analysts are expecting a figure of 700,000 new non-farm jobs in the United States. They also expect an unemployment rate of 5.7%. If the reports exceed these expectations, we could see a continuation of Wall Street’s rally, which reached record highs yesterday. In the meantime, traders continue to buy gold to mitigate the volatility that may be generated today in equities. Gold is currently up 0.14% and is trading at USD$1,778 per Troy ounce. |
 |
| Support 1: 1,777.59 Support 2: 1,777.07 Support 3: 1,776.19 Resistance 1: 1,778.99 Resistance 2: 1,779.87 Resistance 3: 1,780.39 Pivot Point: 1,778.47 |
| The price is above the Ichimoku cloud and also above the 200-day moving average. Possible move towards 1,783. If it breaks above this level, the next target is 1,796. Pivot point at 1,778. RSI neutral, approaching the overbought zone. |
| EURUSD -0.03% |
| The currency remains above 1.1840, with possible further declines caused by the increase in cases of the Delta variant in Europe, which may hurt the summer, tourism and therefore the demand for Euros. The currency is currently down 0.03% and is trading at 1.1841. Traders are aware of the NFP data to test the currency volatility. If the data surprises the market, we could see a rebound towards resistance 2. |
 |
| Support 1: 1.1843 Support 2: 1.1840 Support 3: 1.1838 Resistance 1: 1.1848 Resistance 2: 1.1850 Resistance 3: 1.1852 Pivot Point: 1.1845 |
| For the second time the price is at support 1 marking a double bottom. This could be a sign of a change in trend, where the price could bounce, looking for the resistance 2. Pivot point at 1.1845. RSI neutral. |
| CRUDE OIL -0.08% |
| Crude oil reached USD$75 per barrel, after the confirmation of the reduction of oil reserves and inventories in the United States. At the moment, the price is dropping 0.08% and is trading at USD$75.13 per barrel. On the other hand, OPEC+ is showing doubts whether or not to increase production for the coming months. Current market data would indicate that production can raise as a result of the increase in demand following the economic recovery. However, the Delta variant created doubts in the organization, as the impact on future demand could be significant. |
 |
| Support 1: 75.11 Support 2: 74.99 Support 3: 74.87 Resistance 1: 75.35 Resistance 2: 75.47 Resistance 3: 75.59 Pivot Point: 75.23 |
| Expected trading range between 74.87 and 75.59. Pivot point at 75.23. RSI neutral. The price is moving sideways towards 75.09 while OPEC+ announces its decision. |
| S&P500 -0.01% |
| Governments around the world are supporting the proposal for a minimum corporate tax rate of 15%. If approved by the OECD, it would take effect from 2023. Meanwhile, Wall Street indexes are mixed, with declines in the S&P500 and the Nasdaq 100; indexes that group together a significant number of companies aware of OECD decision. On the other hand, traders are aware of the NFP, which could confirm or correct the rally that the indices have being presenting during this week. |
 |
| Support 1: 4,309.62 Support 2: 4,308.63 Support 3: 4,306.88 Resistance 1: 4,312.36 Resistance 2: 4,314.11 Resistance 3: 4,315.10 Pivot Point: 4,311.37 |
| Price is at resistance 1. Expected trading range between 4,306 and 4,315. Pivot point for trend change at 4,311. Neutral RSI coming out of the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
Risk Disclaimer
Any information/articles/materials/content provided by Capitalix or displayed on its website is intended to be used for educational purposes only and does not constitute investment advice or a consultation on how the client should trade.
Although Capitalix has ensured that the content of such information is accurate, it is not responsible for any omission/error/miscalculation and cannot guarantee the accuracy of any material or any information contained herein.
Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the client and Capitalix accepts no liability for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.
Risk Warning: Forex/CFDs trading involves significant risk to your invested capital. Please read and make sure that you fully understand our Risk Disclosure Policy.
You should ensure that, depending on your country of residence, you are allowed to trade Capitalix.com products. Please ensure that you are familiar with the company’s risk disclosure.