Daily review for October 08, 2021
The market expects the generation of at least 500,000 new non-farm jobs in the United States. Gold remains sideways awaiting the NFP.
Analysts’ projection is based on the increase in corporate hiring, which would put the unemployment rate at 5.1%.
EURUSD continues its downward trend. This time, it is approaching the important support zone of 1.1500. ECB President Christine Lagarde will present the Bank’s weekly economic outlook.
Energy demand and China’s return to the market boost commodity prices. WTI nears USD$80 per barrel. Goldman Sachs’ projection remains at USD$90 for the end of the year.
Yesterday there was an important rally in equities, generated by the agreement to extend the debt ceiling in the United States. If the NFP and the unemployment rate exceed market expectations, the rally could continue.
| GOLD -0.08% |
| Traders are keeping an eye on the NFP (Non Farm Payrolls) today. The indicator measures the number of new non-farm jobs in the United States. Given the current market conditions, analysts expect 500,000 new non-farm jobs. If it exceeds market expectations, equities could confirm the rally. If it comes in under expectations, gold prices could trend higher. Meanwhile, the price of gold is down 0.08% and is trading at USD$1,757 per Troy ounce. Today, the U.S. unemployment rate will also be released, with analysts projecting a 5.1% rate. |
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| Support 1: 1,758.81 Support 2: 1,758.28 Support 3: 1,757.41 Resistance 1: 1,760.21 Resistance 2: 1,761.08 Resistance 3: 1,761.61 Pivot Point: 1,759.68 |
| Gold price is between resistance 1 and the pivot point. Possible sideways movement, while traders’ strategy before the NFP is known. Expected trading range between USD$1,757 and USD$1,761. Pivot point at USD$1,759. RSI neutral. |
| EURUSD -0.01% |
| The EURUSD is moving sideways above the 1.1548 area. Traders are looking forward to ECB President Christine Lagarde’s statement. This will be followed by the NFP data. The equity rally was generated by the US Senate approval to extend the debt ceiling by USD$408 billion. Despite the above, demand for the Euro has been declining in part because European macroeconomic data has not exceeded market expectations. At the moment the EURUSD is down 0.01% and is trading at 1.1548. |
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| Support 1: 1.1550 Support 2: 1.1547 Support 3: 1.1544 Resistance 1: 1.1556 Resistance 2: 1.1559 Resistance 3: 1.1563 Pivot Point: 1.1553 |
| Price remains below the 200-day moving average. Expected trading range between 1.1544 and 1.1563. Pivot point for trend change at 1.1553. RSI neutral. Bearish trend. Possible rebound, depending on NFP. |
| WTI +1.39% |
| Rebound from the support of USD$74.93. The price is close to USD$80 per barrel. At the moment WTI is up 1.39% and is trading at USD$79.38. Brent is up 1.22% and is trading at USD$82.94 per barrel. Commodity prices are rising today as China returns to the market. The Asian country is the main importer of commodities globally. Demand for energy continues to rise, so demand for oil and oil products continues to increase. Despite the increase in OPEC production, demand for crude oil continues to outstrip supply. |
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| Support 1: 79.24 Support 2: 79.16 Support 3: 79.10 Resistance 1: 79.38 Resistance 2: 79.44 Resistance 3: 79.52 Pivot Point: 79.30 |
| The price is above the 200-day moving average. It is currently at a double top at USD$79.37. If the Bulls break above this zone, the price could climb towards USD$80.14 per barrel. RSI in the overbought zone. |
| DOW JONES +0.05% |
| Global stock indexes remain in an uptrend for the time being. Wall Street indices are giving up some points after yesterday’s important rally in equities. The Dow Jones closed with a gain of 337 points. At the moment, the index is up 0.05% and is trading at 34,784 points. Rally continuation depends on the NFP result. If the indicator and the unemployment rate exceed market expectations, we could see the confirmation of the rally that would push the Dow Jones back towards the 35,000 zone. |
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| Support 1: 34,771.5 Support 2: 34,759.3 Support 3: 34,739.0 Resistance 1: 34,804.0 Resistance 2: 34,824.3 Resistance 3: 34,836.5 Pivot Point: 34,791.8 |
| Price is above the 200-day moving average. Expected trading range between 34,739 and 34,836. Pivot point for trend change at 34,791. Neutral RSI coming out of the overbought zone. Bulls are looking to break above resistance 1, in order to reach 35,000 zone again. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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