Daily review for November 03, 2021
Monetary Policy Day. The focus is on the Fed’s interest rate decision and the start of tapering.
Metals are trading in negative territory at the moment, however, a turnaround is expected, as traders are interested in hedging portfolios in the face of volatility from the FED and ECB announcements.
In Europe, traders are testing the ECB’s strategy. So far it has been in favor of the market. However, the probability of a shift of interest towards inflation is increasing.
After climbing 6.86% Natural Gas drops a few points. The focus is on Nordstream 2.
Dow Jones seeks to consolidate above 36,000 points. Traders are waiting for equities to react to tapering announcements.
| GOLD -0,48% |
| Important day for global monetary policy. Today, the FED will make its interest rate decision. The market expects tapering to begin this month, however, analysts see little likelihood of a change in interest rates, at least at this time. Therefore, the FED is expected to keep rates unchanged at 0.25%. Traders are looking for the best allocation of their portfolios, and with this they are seeking to include metals. The price of gold is currently down 0.48% and is trading at USD$1,780 per Troy ounce. Silver, meanwhile, is down 0.10% and is trading at USD$23.48 per Troy ounce. Possible change in the trend of metals. |
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| Support 1: 1,781.05 Support 2:1,779.45 Support 3: 1,778.30 Resistance 1: 1,783.80 Resistance 2: 1,784.95 Resistance 3: 1,786.55 Pivot Point: 1,782.20 |
| Price is at support 2 and below the 200-day moving average. Possible decline towards support 3, before looking for a change of trend. Expected trading range between USD$1,778 and USD$1,786. Pivot point at USD$1,782. RSI in oversold zone. |
| DAX 40 -0.13% |
| European stock indices are mixed, awaiting the statements of the President of the European Central Bank, Christine Lagarde. Traders know that the Fed had announced the start of tapering in November 2021. However, the ECB has maintained its pro-market stance. Today, traders will confirm the Bank’s intention to maintain economic stimulus in order to recover the market, or if they will turn to the FED’s strategy of keeping low the inflationary level. At the moment the DAX 40 is down 0.13% and is trading at 15,927. Traders will also be watching the Euro Zone unemployment rate. |
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| Support 1: 15,924.6 Support 2: 15,919.8 Support 3: 15,914.6 Resistance 1: 15,934.6 Resistance 2: 15,939.8 Resistance 3: 15,944.6 Pivot Point: 15,929.8 |
| The index is above the 200-day moving average. At the moment the price is at resistance 1. The Bulls are looking for 16,000 points. If it reaches this level, the Bulls would be looking for the all-time high level. Pivot point at 15,929. RSI leaving the overbought zone. |
| NATURAL GAS -0.70% |
| Natural Gas posted an interesting rally yesterday, rising 6.86%. The commodity’s upward momentum is confirmed by fundamental data from Europe. Most of the European Union members have only 40 days of demand reserves. To solve the supply problem, the EU and Russia are accelerating the Nordstream 2 project, which would supply Natural Gas to Europe through Germany. Meanwhile, the price of Natural Gas is currently falling by 0.70% and is trading at USD$5.49 per BTU. |
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| Support 1: 5.525 Support 2: 5.511 Support 3: 5.503 Resistance 1: 5.547 Resistance 2: 5.555 Resistance 3: 5.569 Pivot Point: 5.533 |
| The price is slightly below the 200-day moving average, just at the line of resistance 1. Expected trading range between USD$5.50 and USD$5.56. Pivot point for trend change at USD$5.53. RSI neutral. Traders are aware of the level of inventories in Europe. |
| DOW JONES -0.11% |
| Traders are keeping an eye on the monetary policy agenda. The most important event is the Fed’s interest rate decision. The market does not yet anticipate the likelihood that they will remain unchanged. However, if tapering begins, there could be some discounts in global stock indexes. At the moment, Wall Street indices are in negative territory. The Dow Jones is down 0.11% and is trading at 36,009 points. |
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| Support 1: 35,994.9 Support 2: 35,978.1 Support 3: 35,963.4 Resistance 1: 36,026.4 Resistance 2: 36,041.1 Resistance 3: 36,057.9 Pivot Point: 36,009.6 |
| The index continues above the 200-day moving average. It is currently right between resistance 1 and the pivot point. Pivot point at 36,009 for trend change. The Bulls are looking to consolidate the 36,000 level. To do so, they should look for the 36,300 area. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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