Daily Review for March 11, 2021
Global market boosted by the approval of the USD$1.9 trillion economic stimulus package by the US Congress.
US Inflation data surprised the market and analysts see less probability of an interest rate hike in the short term.
Investors are looking forward to today`s ECB announcements. Decisions will be made on interest rate and monetary policy strategy.
Commodities on the rise. Gold is marking a possible upward channel to 1,800.
Nasdaq 100 loses fear of decline and rebounds. Bulls look for 13,000.
| DAX 30 +0.15% |
| European market opens higher as a result of the USD$1.9 trillion economic stimulus package approved by the US Congress. At the moment the DAX 30 is up 0.15% and is trading at 14,572. Today we will have announcements from the European Central Bank. Traders are aware of this event, as the Bank will be making decisions on interest rates, which can generate interesting volatility in the market. |
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| Support 1: 14,570.5 Support 2: 14,554.5 Support 3: 14,544.5 Resistance 1: 14,596.5 Resistance 2: 14,606.5 Resistance 3: 14,622.5 Pivot Point: 14,580.5 |
| Bulls set a new target at 15,000 points. The price has marked an upward channel to consolidate above 14,000 points. The Bulls’ short-term target is the level of 15,500. Expected trading range between 14,544 and 14,622. |
| EURUSD +0.13% |
| The currency is starting to recover some points in anticipation of the ECB. It is currently up 0.13% and is trading at 1.1941. Yesterday’s US inflation report showed a reading of 0.1% for February, below the 0.2% forecasted by the market. On an annual basis, inflation came in at 1.3%. As inflation remains low, bond yields declined. Investors, meanwhile, are looking ahead to ECB President Christine Lagarde’s speech on monetary policy. Analysts expect the strategy to remain unchanged. |
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| Support 1: 1,1885 Support 2: 1,1846 Support 3: 1,1784 Resistance 1: 1,1947 Resistance 2: 1,197 Resistance 3: 1,2032 Pivot Point: 1,1908 |
| Price rebounded from the support of 1.1920. At the moment it is above the 23.6% of the Fibonacci retracement level. The currency is below the 5 and 10-day moving averages. RSI is entering the overbought level. If the momentum continues, the price could reach 1.1991 equivalent to the 38.2% of the Fibonacci level. |
| GOLD +0.80% |
| Gold is above an important resistance at USD$1,738. If it manages to overcome this, the next level is USD$1,800. The price is currently up 0.80%. Bulls see fundamental buying signals, such as the stimulus package in the US, which can create more inflation during its execution, and for that investors will continue to buy gold. On the other hand, commodities in general are having a bullish day. Silver is up 1.47%, WTI 0.82%, copper 2.03%. |
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| Support 1: 1,714.32 Support 2: 1,701.91 Support 3: 1,683.17 Resistance 1: 1,733.06 Resistance 2: 1,739.39 Resistance 3: 1,758.13 Pivot Point: 1,720.65 |
| The price is above resistance 2. Next level to watch is 1.758. The support to be aware is at 1.714. Ichimoku cloud projects a trading range between 1.711 and 1.725. Pivot point at 1.720. |
| NASDAQ 100 +1.41% |
| US inflation data surprised the market by its low level and created an important rebound at the Nasdaq 100. At the moment the index is up 1.41% and is trading at 12,927. Economists believe that interest rates will not be raised in the short term. Traders see an opportunity for a rebound in the index and begin to mark long positions which are favored at discount levels. |
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| Support 1: 12,894.59 Support 2: 12,858.79 Support 3: 12,837.96 Resistance 1: 12,951.22 Resistance 2: 12,972.05 Resistance 3: 13,007.85 Pivot Point: 12,915.42 |
| Bulls are looking to regain 13,000 points. The price is currently at resistance 1. If the momentum beats this level, the next target is 13,060, to then climb towards 13,260 points, equivalent to the 50% of the Fibonacci level. Expected trading range between 12,837 and 13,007. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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