Daily Review for March 9, 2021
Bond yields pressure tech stocks.
Bitcoin rebounds again and approaches USD$54,000.
Gold starts the day with significant buying volume. Bulls look to regain the 1,700 level.
Traders aware of the GDP data from the European Union. Also to the ECB’s reaction to the depreciation of the Euro. Possible interest rate hike.
Wall Street Index futures bullish, looking to push the global market into a rally.
| DAX 30 -0.27% |
| German index closed yesterday above 14,000 points, after a rise of 3.50%. The index is currently down 0.27% and is trading at 14,318. Yesterday’s rally was pushed by the approval of the economic stimulus package by the US Senate, and by the possible approval of the J&J vaccine in the EuroZone. Another important factor in the rise was the depreciation of the EURUSD, which closed at 1.18. Meanwhile, traders are looking ahead to the ECB meeting later in the week. Today we will have the Quarterly and Annual GDP reading for the Euro Zone. |
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| Support 1: 14,356.6 Support 2: 14,333.3 Support 3: 14,316.6 Resistance 1: 14,396.6 Resistance 2: 14,413.3 Resistance 3: 14,436.6 Pivot Point: 14,373.3 |
| Price is above resistance 1. Bulls next target is resistance 2 at 14.413. Expected trading range between 14.316 and 14.436. Pivot point at 14.373. |
| GOLD +0.95% |
| Due to market uncertainty and caution over inflation, gold has started to generate buying positions among investors. At the moment, the metal is up 0.95% and is trading at USD$1,697.10 per Troy ounce. Tomorrow, we will have the US inflation report. The market expects an increase of 1.7% for February 2021. On the other hand, Bitcoin buying volume during the Asian session has helped the price to reach USD$53,000. |
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| Support 1: 1,690.50 Support 2: 1,686.00 Support 3: 1,683.35 Resistance 1: 1,697.65 Resistance 2: 1,700.30 Resistance 3: 1,704.80 Pivot Point: 1,693.15 |
| Despite today’s price rise, gold remains in a downward channel and keeps with a negative outlook. The price is currently above the 25 and 15 day moving averages. The RSI is neutral but approaching the overbought level. Bears are pointing to the 1,600 level. |
| EURUSD +0.36% |
| The currency witnessed a significant drop yesterday. It is currently up 0.36% and is trading at 1.1886. The pressure on the currency was generated by the approval of the stimulus package in the US, and by the important rally of crude oil and Brent. The stimulus package generates more supply in the USD, which causes the currency to depreciate. In doing so, it drags down the EUR as its major global peer. Commodities rally also generates a greater number of transactions in the physical market, which in turn, helps to increase the flow of Euros into the market. |
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| Support 1: 1.1860 Support 2: 1.1838 Support 3: 1.1824 Resistance 1: 1.1896 Resistance 2: 1.1910 Resistance 3: 1.1933 Pivot Point: 1.1874 |
| The currency is trading below the 50, 100 and 500 days moving averages, signaling a bearish trend. The RSI is at neutral level, approaching overbought level. The currency is coming out of support 1 and heading towards resistance 1. Pivot point at 1.1874. |
| S&P500 +0.87% |
| The market is recovering the declines evidenced a couple of weeks ago. In the case of the S&P500, the index is currently up 0.87% and is trading at 3,852. Market analysts see the beginning of the economic recovery after the pandemic. Despite vaccine delay, the results of its application are starting to show good results. The number of infections globally continues to decline. Meanwhile, Wall Street indices are in positive territory. Even the Nasdaq 100 is recovering from yesterday’s decline. Today we will have the EIA’s short-term energy market outlook. |
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| Support 1: 3,838.96 Support 2: 3,828.05 Support 3: 3,822.22 Resistance 1: 3,855.70 Resistance 2: 3,861.53 Resistance 3: 3,872.44 Pivot Point: 3,844.79 |
| The price is forming an ascending channel. If the rally continues, we may see upside to resistance 2. Trading range between 3.822 and 3.872. Pivot point at 3.844. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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