Daily Review for June 10, 2021
Market attentive to the ECB interest rate decision.
Sideways movements of the indices indicate that traders are waiting moments before the announcement to take positions.
The market is evaluating US inflation. Annualized and monthly results will be released today.
Investors took profit at USD$70 per barrel. The price of crude oil falls below the USD$69 mark. Today’s OPEC’s monthly report could indicate next market trend.
Bulls are looking to regain the 1.2200 area for EURUSD. The market will be watching the ECB announcements. Continuation of a market-adaptive monetary policy is expected.
El Salvador is the first country in the world to accept Bitcoin as a legal currency.
| DAX 30 +0.02% |
| The market is waiting for today’s European and global interest rate decisions from the ECB. First, we will have comments from the Bundesbank and then announcements from the European Central Bank. Traders expect the ECB to take the lead in monetary policy and provide further support to the market and the economic recovery. Today we will also have the US inflation data, which will accompany President Biden on his European agenda. |
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| Support 1: 15,597.1 Support 2: 15,589.8 Support 3: 15,584.1 Resistance 1: 15,610.1 Resistance 2: 15,615.8 Resistance 3: 15,623.1 Pivot Point: 15,602.8 |
| Price is below the Ichimoku cloud, and is approaching the pivot point, which could generate a change of trend. Trading range between 15,584 and 15,623. Pivot point at 15,602. RSI neutral. |
| S&P500 +0.03% |
| The S&P 500 is presenting sideways movement above the 4,219 mark. It is currently up 0.03%. Traders are keeping an eye at the US inflation data. Economists are forecasting a year-over-year figure of 3.4% and a month-over-month figure of 0.4%. The importance of this data is that it may set the Fed’s strategy for the coming months. The market expects an early interest rate hike; however, the FED has presented an evaluative strategy towards the economy. |
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| Support 1: 4,220.28 Support 2: 4,218.95 Support 3: 4,217.28 Resistance 1: 4,223.28 Resistance 2: 4,224.95 Resistance 3: 4,226.28 Pivot Point: 4,221.95 |
| The price is between support 1 and resistance 1. It is also close to the pivot point, so the index could change trend. Main volatility will be expected towards the inflation data announcement. Pivot point at 4,221. RSI neutral. |
| CRUDE OIL -0.53% |
| Crude oil reached resistance at USD$70.51 per barrel. From this point, traders took profits, which generated the current 0.53% drop in the commodity. It is currently trading at USD$69.56. Today, we will have OPEC’s monthly report. The main emphasis will be on market demand. Depending on the forecasts, OPEC will make decisions to increase or decrease crude oil production going forward. |
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| Support 1: 69.46 Support 2: 69.34 Support 3: 69.24 Resistance 1: 69.68 Resistance 2: 69.78 Resistance 3: 69.90 Pivot Point: 69.56 |
| Price is at support 1. Expected trading range between 69.24 and 69.90. Pivot point at 69.56. RSI neutral. Possible sideways price movement, looking to consolidate this area. If there is no data showing better demand performance, the price could start to correct. |
| EURUSD -0.08% |
| EURUSD is currently down 0.08% and is trading at 1.2170. Traders and banks are aware of the ECB interest rate decision. They know that the ECB has disassociated itself from the Fed’s strategy. The Fed has been more cautious in its economic analysis. The ECB has been more focused on supporting the market. After the rate announcement, we will have the press conference with ECB monetary policy analysis. |
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| Support 1: 1.2160 Support 2: 1.2154 Support 3: 1.2147 Resistance 1: 1.2174 Resistance 2: 1.2182 Resistance 3: 1.2188 Pivot Point: 1.2168 |
| Price is below the Ichimoku cloud, right at support 1. RSI neutral. Trading range between 1.2147 and 1.2188. Pivot point at 1.2168. If the Bulls gain momentum, we could see the price climb back to the 1.2200 area. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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