Daily Review for March 12, 2021
Global markets open in red. In Asia, Japanese indices start to turn positive.
Silver continues to correct and approaches the support of 25. Possible bullish opportunity due to the industrial demand that would be generated by the economic stimulus package in the USA.
EURUSD continues to decline. Low inflation and the ECB Quantitative Easing program did not make the currency react.
Crude oil remains stable, moving sideways, but with a bullish outlook.
DAX 30 sideway. Traders are watching the news about J&J and Jenssen vaccines.
| SILVER -1,60% |
| After peaking at USD$30 in February 2021, the price of silver has fallen to the actual level of 25.70. At the moment the metal is down 1.60%. However, the price of silver could start to climb, driven by the US stimulus package that could create demand for its industrial use. Similarly, government bond yields have stabilized and investors could include silver to their portfolios. |
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| Support 1: 25.61 Support 2: 25.45 Support 3: 25.25 Resistance 1: 25.97 Resistance 2: 26.17 Resistance 3: 26.33 Pivot Point: 25.81 |
| The price is forming a shoulder head shoulder pattern, which could make the price reach the level of 25. At the moment the price is below the 25 and 15 day moving average. Bears mark the target at 23. Pivot point at 25.81. |
| EURUSD -0.36% |
| The currency continued to fall today after a cautious monetary policy speech by Chrsitine Lagarde as ECB president. Traders were expecting a slightly more aggressive strategy from the bank, mainly due to the depreciation of the Euro. However, after the actual low inflation level in the EU and the US, the ECB decided to keep interest rates unchanged. The currency is currently down 0.36% and is trading at 1.1946. |
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| Support 1: 1.1937 Support 2: 1.1931 Support 3: 1.1924 Resistance 1: 1.1950 Resistance 2: 1.1957 Resistance 3: 1.1964 Pivot Point: 1.1944 |
| The price is above the Ichimoku cloud and above support 1. From here there are two possibilities. A possible bounce to resistance 1 or a decline towards support 2 and 3. The RSI is at neutral level, coming out of the oversold level. |
| CRUDE OIL -0.32% |
| Crude oil has been one of the best performing assets of 2021. Fundamental factors have contributed to the oil price resurgence. Those include OPEC+ production cuts, attacks on refining and loading terminals in Saudi Arabia, vaccination campaigns worldwide. Factors that generate bullish signals for the price of the commodity. At this moment it is falling 0.32% and is trading at USD$65.62 per barrel. Crude oil market is guided by the behavior of demand. In this sense, the three main consumers of crude oil are the USA, Japan and China. Accordingly, the behavior of the crude market depends on the economic growth of these three economies. |
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| Support 1: 65.45 Support 2: 65.26 Support 3: 65.11 Resistance 1: 65.79 Resistance 2: 65.94 Resistance 3: 66.13 Pivot Point: 65.60 |
| The price could correct a few points from now and reach the support level of 60 before bouncing to the actual level and then to USD$68 per barrel. Pivot point at 65.60. |
| DAX 30 -0.22% |
| At yesterday’s press conference, the ECB stated that it will maintain its current monetary policy strategy, which includes keeping interest rates stable and continuing to purchase fixed income instruments to keep bond yields stable. In this way, the ECB seeks to keep inflation and the interest rate curve stable. Meanwhile, the German index is down 0.22% and is trading at 14,515. On the other hand, AstraZeneca’s vaccine is receiving significant global criticism, and several European countries, including Denmark, Norway and Italy, have restricted its use for the time being. J&J’s vaccine was approved in the European Union and Jenssen’s vaccine is expected to be approved soon. |
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| Support 1: 14,492.5 Support 2: 14,474.0 Support 3: 14,440.5 Resistance 1: 14,544.5 Resistance 2: 14,578.0 Resistance 3: 14,596.5 Pivot Point: 14,526.0 |
| Actual trading volume is low while the market marks a trend. The price remains above 14,500 points and is taking a sideways path. Pivot point at 14,526. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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