Daily Review for March 19, 2021
Market opens mixed. Uncertainty emerges over the strength of the third wave of covid-19 in Europe. European Medicine Agency backs AstraZeneca vaccine.
EURUSD feels pressure from covid-19 in Europe. Eurozone economic recovery is not keeping pace. New lockdown in Paris punishes the CAC 40.
Gold recovers positions. Approaching the level of USD$1,750 per Troy ounce. Possible correction in commodities as long as the super cycle is marked.
US futures are rising. Investors are on the lookout for possible selling volume in the indices on the back of rising bond yields. Stimulus checks are already in circulation. A large part of them are expected to enter the stock market.
| EURUSD +0.14% |
| The currency formed a double top before falling to the current level due to bond yields. The EURUSD is currently up 0.14% and is trading at 1.1934. The European Medicine Agency has announced that AstraZeneca’s vaccine outweighs the risks, so some European countries are going to start using it again. For the time being, the economic recovery of the Euro Zone is not going at the estimated pace. In Paris, lockdowns have returned as a measure against the possible third wave of the coronavirus. |
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| Support 1: 1.1922 Support 2: 1.1912 Support 3: 1.1904 Resistance 1: 1.1941 Resistance 2: 1.1948 Resistance 3: 1.1959 Pivot Point: 1.1930 |
| The currency is below the 20-day and 50-day moving averages. The price formed a double top before starting the decline towards 1.1907. From there it bounced and remain between support 1 and resistance 1. The Bears are trying to break the support at 1.900. Pivot point at 1.1930. |
| GOLD +0.52% |
| Bulls have managed to defend gold. The metal is currently up 0.52% and is trading at USD$1,741.74. Yesterday, the market evidenced the Bulls profit taking. Following this market correction, the price of metals including gold, silver, copper, palladium and platinum, showed upward movements. We have not yet entered the commodity super cycle, as this depends upon the rapid economic recovery globally. The United States, China and Japan are showing positive signs, but the market needs a faster recovery to achieve the commodity rally. Due to the growth of covid 19 in Europe, the price of oil showed an important correction. |
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| Support 1: 1,738.41 Support 2: 1,736.08 Support 3: 1,733.06 Resistance 1: 1,743.76 Resistance 2: 1,746.78 Resistance 3: 1,749.11 Pivot Point: 1,741.43 |
| Trading range between 1,733.06 and 1,749.11. Pivot point at 1,741.43. The price is in the Ichomoku cloud, which forecasts sideways movements. The RSI is neutral and approaching the overbought zone. |
| NASDAQ 100 +0.89% |
| The Nasdaq 100 formed a double top before falling to the current level of 12,880. The index is currently up 0.89%. US 10-year and 30-year bond yields continue to rise, putting pressure on equities. At the moment, there is a significant amount of buying of US technology stocks in the premarket. It seems that an important part of the stimulus checks is entering the stock market. After the previous one, we could see interesting movements and corrections. |
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| Support 1: 12.819,16 Support 2: 12.776,58 Support 3: 12.753,66 Resistance 1: 12.884,66 Resistance 2: 12.907,58 Resistance 3: 12.950,16 Pivot Point: 12.842,08 |
| The index is at support 1. The price is on its way to resistance 1, but has some way to go. If the buying momentum continues, we could see the index back above 13,000 points. Pivot point at 12,842. |
| DOW JONES +0.20% |
| The benchmark index of the 30 largest industrial companies by market capitalization in the US is currently up 0.20% and is trading at 32,835. The global market opened mixed. Futures in the US are rising, while in Europe, the CAC 40 index of the French Stock Exchange is down 0.80% due to the lockdown in Paris. The market is also punishing the FTSE 100, because of the AstraZeneca vaccine. The EuroStoxx 50 is up 0.24%, but is coming under pressure from the Bears. Due to the uncertainty Treasury yields are starting to rise; gold as well. Bitcoin is also rising and is close to reaching 60,000 points again. |
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| Support 1: 32,774.9 Support 2: 32,755.7 Support 3: 32,718.9 Resistance 1: 32,830.9 Resistance 2: 32,867.7 Resistance 3: 32,886.9 Pivot Point: 32,811.7 |
| RSI neutral. For the moment the buying volume seen in the Asian session has stopped. Sideways movement. Ichomoku projects 32.886. Pivot point at 32.811. Trading range between 32,718 and 32,886. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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