Daily Review for July 12, 2021
European markets opens higher on the back of Italy’s victory in the Eurocup.
DAX 30 reached the 15,664 mark and the Bulls are looking for the 15,700 level.
ECB President Christine Lagarde announced the review of the bank’s strategy for the first half of 2021. She also commented that the ECB will start the calibration of the strategy, which could include new tools.
The Eurostoxx50 is looking for 4,100 points, boosted by the Bulls’ long positions.
Gold continues to trade between USD$1,820 and USD$1,794. Traders are currently more interested in gold ETFs.
EURUSD is looking to trend depending on the ECB strategy, inflation, and the Delta variant.
| DAX 30 -0.17% |
| The ECB has stated through Christine Lagarde, that the Bank’s monetary policy strategy could change, indicating that the measures that have been taken to face the pandemic, should be calibrated. The revision of the strategy could be based on the creation of new tools, in addition to refinancing, bond purchases, QE, among others. At the moment the DAX 30 is down 0.17% and is trading at 15,638. |
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| Support 1: 15,635.6 Support 2: 15,628.3 Support 3: 15,624.6 Resistance 1: 15,646.6 Resistance 2: 15,650.3 Resistance 3: 15,657.6 Pivot Point: 15,639.3 |
| The price has marked a double top at the resistance 1 level. If the index corrects towards the pivot point, the Bulls could try again to overcome the level of 15,671. Pivot point at 15,639. RSI in overbought zone. |
| EUROSTOXX 50 -0.01% |
| Italy has won the Euro Cup and this has created optimism in the European markets. Italy’s MIB 40 is up 1.96% and the FTSE100 is down 022%. The Eurostoxx50 is in an uptrend and is trading at 4,050. Traders are looking ahead to today’s Eurogroup meeting and this week’s ECB announcements. |
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| Support 1: 4,052 Support 2: 4,050 Support 3: 4,048 Resistance 1: 4,055 Resistance 2: 4,056 Resistance 3: 4,058 Pivot Point: 4,053 |
| The index rebounded from support 1. It is currently approaching the resistance 2. Pivot point at 4.053. RSI in overbought zone. Bullish outlook. |
| GOLD -0.46% |
| After reaching the mark of USD$1,817 per Troy ounce, the price of gold has fluctuated between the range of USD$1,820 and USD$1,794. At the moment the price is down 0.46% and is trading at USD$1,800. Traders continue buying gold but in ETF’s, rather than futures contracts. As a result, the price of the metal has not been in a complete uptrend. In the meantime, traders are evaluating the inflation data and are attentive to FED’s statement. |
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| Support 1: 1,802.15 Support 2: 1,801.10 Support 3: 1,800.15 Resistance 1: 1,804.15 Resistance 2: 1,805.10 Resistance 3: 1,806.15 Pivot Point: 1,803.10 |
| The price is at support 1. If it manages to go down from this zone, the next level to watch is at 1,794. Trading range between 1,800 and 1,806. Pivot point at 1,803. RSI neutral. |
| EURUSD -0.06% |
| The currency is currently down 0.06% and is trading at 1.1864. Several factors will show upward or downward pressures for the currency. Among them, the recalibration of the ECB’s strategy, the increase in Delta variant cases, and inflation. The ECB’s strategy will be geared towards new instruments that allow for rapid economic growth with controlled inflation. |
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| Support 1: 1,1864 Support 2: 1,1861 Support 3: 1,1858 Resistance 1: 1,1869 Resistance 2: 1,1873 Resistance 3: 1,1875 Pivot Point: 1,1867 |
| Expected trading range between 1.1858 and 1.1875. Pivot point at 1.1867. RSI neutral. Price is between resistance 1 and the pivot point. It is also above the 200-day moving average. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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