Daily Review for June 24, 2021
The market is looking ahead to the Bank of England (BoE), which will take interest rate decisions. The Bank will also present its economic continuity plan, QE strategies and economic outlook.
The FED will present today the results of the Stress Tests of the 34 major banks in the United States.
GBPUSD shows bullish movement. Traders are testing market movements and the impact of the UK interest rate decision on the currency.
The S&P500 is looking for record highs. If banks pass the test in the U.S., the market could see a consolidation of the bullish pattern.
In Europe, the market is aware of the economic results from Spain and Germany. Also traders are aware of the ECB economic bulletin and the results of the EU summit.
The rotation from value stocks to growth stocks is starting in the market. The Nasdaq 100 is taking advantage of bullish momentum and is looking for the 14,500 level.
| GBPUSD +0.10% |
| The market is focused today on the Bank of England’s (BoE) interest rate decision. Although the interest rate is expected to remain unchanged at 0.10%, analysts expect the BoE to surprise the market. At the moment, the British Pound against the USD is up 0.10% and is trading at 1.3969. The BoE will also present its Quantitative Easing plan, where a GBP 875 Billion package is expected. |
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| Support 1: 1.3954 Support 2: 1.3950 Support 3: 1.3946 Resistance 1: 1.3962 Resistance 2: 1.3966 Resistance 3: 1.3970 Pivot Point: 1.3958 |
| The price is above the Ichimoku cloud and is close to the pivot point, which could generate a change of trend. Trading range between 1.3946 and 1.3970. Pivot point at 1.3958. RSI neutral. |
| S&P 500 +0.21% |
| Today the FED will present the results of the stress tests on the 34 major banks in the United States. The financial sector is paying close attention to the results, as it depends on whether banks can pay dividends, buy shares or make strategic decisions on capital requirements. Meanwhile, the S&P500 is up 0.21% and is trading at 4,241. The S&P500 includes 40 financial companies, so the outcome of the banks’ stress test may impact its performance. |
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| Support 1: 4,238.70 Support 2: 4,237.53 Support 3: 4,235.94 Resistance 1: 4,241.46 Resistance 2: 4,243.05 Resistance 3: 4,244.22 Pivot Point: 4,240.29 |
| The price rebounded from 4,124 and managed to recover the uptrend towards the all-time high level of 4,252. Sideways movement, while the result of the banks’ stress test is presented. Pivot point at 4,240. RSI neutral. |
| DAX 30 +0.45% |
| European stock indices are on the rise. Traders begin to mark positions depending on the economic results of the Spanish GDP, German business expectations, German LFO index, and mainly the ECB economic bulletin. The market is also aware of the conclusions of the European Union summit. The DAX 30 is up 0.45% and is trading at 15,522. |
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| Support 1: 15,475.9 Support 2: 15,469.7 Support 3: 15,458.4 Resistance 1: 15,493.4 Resistance 2: 15,504.7 Resistance 3: 15,510.9 Pivot Point: 15,487.2 |
| The DAX 30 entered into the Ichimoku cloud, which means the price could take sideway trajectory towards 15,516. Trading range between 15,458 and 15,510. Pivot point at 15,510. RSI neutral. |
| NASDAQ 100 +0.25% |
| The rotation from value stocks to growth stocks is starting again. As a result, the Nasdaq 100 index and its companies are showing significant upward movements. Consequently, the index is rallying towards 14,350 points. At the moment it is up 0.25% and is trading at 14,312. |
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| Support 1: 14,294.66 Support 2: 14,291.08 Support 3: 14,286.66 Resistance 1: 14,302.66 Resistance 2: 14,307.08 Resistance 3: 14,310.66 Pivot Point: 14,299.08 |
| The price overcame the resistance of 14,100, thus supassed its moving average. Possible continuation of the upward movement. Bulls are looking for 14,500. Pivot point at 14,299. RSI neutral, near the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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