Daily Review for July 16, 2021
Traders are focused today on the Euro Zone inflation data.
A higher-than-expected reading could create significant movements in European stock market indices. It could also signal the start of tapering by the ECB.
Retail sales will be released in the U.S. Traders are focused at the financial results of Nasdaq 100 companies.
Crude oil prices manage to stay above USD$70 per barrel. Possible OPEC+ production increase after the agreement between Saudi Arabia and UAE.
EURUSD moves above the 1.1800 mark. Traders assess the possible impact of the Euro Zone inflation data on the currency.
| DAX 30 -0.03% |
| Traders are keeping an eye on Eurozone inflation data. On an annual basis, the market expects a reading of 1.9%. In the United States, current inflation is the highest since 2008. In this case, if inflation exceeds market expectations, significant volatility in European stock markets could be evident. At the moment, the DAX 30 is down 0.03% and is trading at 15,628. |
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| Support 1: 15,593.6 Support 2: 15,586.3 Support 3: 15,580.6 Resistance 1: 15,606.6 Resistance 2: 15,612.3 Resistance 3: 15,619.6 Pivot Point: 15,599.3 |
| Expected trading range between 15,580 and 15,619. Pivot point at 15,599. RSI neutral. After reaching the level of 15,792, the index retreated to support 1. Sideways movement, until the Euro Zone inflation announcement. |
| NASDAQ 100 -0.09% |
| The market is awaiting the U.S. retail sales data. Economists expect at least a 0.4% increase in retail sales on a monthly basis. The Nasdaq 100 index may be impacted because of the sources of revenue of its constituent companies that come from retail. At the moment the index is down 0.09% and is trading at 14,771. |
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| Support 1: 14,757.66 Support 2: 14,739.83 Support 3: 14,726.91 Resistance 1: 14,788.41 Resistance 2: 14,801.33 Resistance 3: 14,819.16 Pivot Point: 14,770.58 |
| The index dropped to support 1. The price is below the 200-day moving average. Trading range between 14,726 and 14,819. Pivot point at 14,770. RSI neutral. |
| CRUDE OIL +0.01% |
| Crude oil is above USD$71 per barrel level, as a result of the imminent increase in market supply, following the agreement between Saudi Arabia and the UAE. The market is discounting the announcement. The Delta variant is also pressuring the market. At the moment the price is up 0.01% and is trading at USD$71.63 per barrel. OPEC+ sees a production increase by 2022 of 2.1 million barrels per day impulsed by non-OPEC+ countries. |
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| Support 1: 71.53 Support 2: 71.47 Support 3: 71.38 Resistance 1: 71.68 Resistance 2: 71.77 Resistance 3: 71.83 Pivot Point: 71.62 |
| Expected trading range between 71.38 and 71.83. Pivot point at 71.62. RSI neutral. The price is at the pivot point, so it could have a change of trend. Possible sideways above USD$71.38. |
| EURUSD -0.02% |
| Traders are aware on the EU inflation data. In the meantime, the currency is moving sideways. At the moment the EURUSD is down 0.02% and is trading at 1.1808. The inflation data in the EU is very important in the market, because it is an indicator of economic overheating. QE programs, bond purchases and stimulus, have generated significant volume of liquidity. Depending on the inflation data, the ECB could start Tapering. |
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| Support 1: 1.1808 Support 2: 1.1805 Support 3: 1.1803 Resistance 1: 1.1813 Resistance 2: 1.1815 Resistance 3: 1.1818 Pivot Point: 1.1810 |
| The currency is between support 1 and the pivot point. Sideways movement above the 1.1808 area. Trading range between 1.1803 and 1.1818. Pivot point 1.1810. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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