Daily Review for July 09, 2021
Traders continue to show interest in tech stocks. The allocation of value stocks to growth stocks is increasing.
The market is attentive to the ECB statement. Announcements on monetary policy and tapering strategies in the EU are expected.
The ECB maintains its position and indicates that its strategy is different from the FED.
The ECB is more inflation oriented, while the FED is more growth oriented.
Gold gains investor interest. The price remains above USD$1,800 per Troy ounce.
EURUSD could change trend and consolidate above 1.1860.
| NASDAQ 100 -0.14% |
| The day begins with mixed movements in global stock markets. In Asia, a large part of the market is presenting a correction, as a consequence of investors’ concern about the increase in the number of cases of the Delta variant. Investor allocation continues, with moves to technology stocks. The Nasdaq 100 is currently down 0.14% and the TecDax is correcting 1.77%. |
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| Support 1: 14,667.16 Support 2: 14,653.08 Support 3: 14,643.66 Resistance 1: 14,690.66 Resistance 2: 14,700.08 Resistance 3: 14,714.16 Pivot Point: 14,676.58 |
| The index is below the Ichimoku Cloud. Trading range between 14,643 and 14,714. Pivot point at 14,676. RSI neutral. Possible trend reversal towards the area of resistance 1. |
| DAX 30 +0.30% |
| Traders are looking forward to today’s statement by ECB President Christine Lagarde, who will communicate the Bank’s views on EU monetary policy and strategies to support the economic recovery without generating inflationary pressures. Lagarde said that the ECB’s strategy is different from the Fed’s strategy. Meanwhile, the DAX30 is up 0.30% and is trading at 15,444. |
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| Support 1: 15.402,4 Support 2: 15.377,2 Support 3: 15.362,4 Resistance 1: 15.442,4 Resistance 2: 15.457,2 Resistance 3: 15.482,4 Pivot Point: 15.417,2 |
| The price is at the pivot point, so it could generate a change of trend towards 15,495. Trading range between 15,362 and 15,482. Pivot point at 15,417. RSI neutral. |
| GOLD +0.11% |
| The metal is once again generating interest in investors portfolios, who have managed to bring the price back above the USD$1,800 per Troy ounce mark. At the moment the price of gold is up 0.11% and is trading at USD$1,803.15. |
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| Support 1: 1,800.15 Support 2: 1,798.80 Support 3: 1,796.10 Resistance 1: 1,804.20 Resistance 2: 1,806.90 Resistance 3: 1,808.25 Pivot Point: 1,802.85 |
| The price exceeded the 200-day moving average. Trading range between 1,796 and 1,808. Pivot point at 1,802. RSI neutral. Possible sideways movement, before the ECB and FED announcements. |
| EURUSD -0.06% |
| The currency continues to consolidate between the range of 1.1795 and 1.1895. Analysts see the price of the currency increasing towards 1.1825 and 1.1850 due to the raise in demand for Euros due to the summer season in Europe. Traders are looking forward to the ECB statement, which could accelerate the uptrend or correct the price. So far, the ECB has not communicated its strategy to mitigate the inflationary effect. However, analysts believe that the tapering could be faster than expected, due to the economic impact that the delta variant could still generate. |
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| Support 1: 1.1830 Support 2: 1.1827 Support 3: 1.1822 Resistance 1: 1.1838 Resistance 2: 1.1843 Resistance 3: 1.1847 Pivot Point: 1.1835 |
| Trading range between 1.1822 and 1.1847. Pivot point at 1.1835. RSI neutral. Price is at the pivot point. Possible rebound towards 1.1870 and 1.1880. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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