Daily Review for September 07, 2021
The Central Bank of Australia maintains interest rates at 0.10%.
The ECB continues to assess the current state of the economy. On Thursday, the bank will take its decision on interest rates. The market expects to remain unchanged. However, the bank started to review the economic scenario in view of a withdrawal of economic stimulus.
El Salvador acquired 200 Bitcoins, which if valued at the spot price, would be a total of USD$10’517.800. Institutions re-enter the market.
Wall Street returns after Labor Day. Interesting volatility is expected, generated by a regular NFP.
Gold corrects at this point. Possible sideways movement from current point as equities trend. Treasury yields are rising.
| DAX 30 -0.05% |
| On Thursday the ECB will decide on interest rates. Opinions are divided. Some believe it is time to reduce economic stimulus. Others believe that it is not yet the right time, considering that the pandemic is not over. The market expects the bank to leave the interest rate unchanged at 0%. Traders are also keeping an eye on the German elections, and the DAX 40 which is due to start trading later this month. At the moment the DAX 30 is down 0.05% and is trading at 15,910. |
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| Support 1: 15,902.9 Support 2: 15,892.2 Support 3: 15,886.4 Resistance 1: 15,919.4 Resistance 2: 15,925.2 Resistance 3: 15,935.9 Pivot Point: 15,908.7 |
| The index presented a retracement from the double top that had formed at the resistance 1. If it get ahead from that level, the next target is 16,012 points. Expected trading range between 15,886 and 15,935. Pivot point at 15,908. RSI neutral. |
| BITCOIN +1.45% |
| Bitcoin price is currently up 1.45% and is trading at USD$52,589. The uptrend continues, mainly due to fundamental factors, such as the purchase of 200 Bitcoins by El Salvador, the interest of Union Investment of Germany that seeks greater exposure of Bitcoin in its investment funds, the continued development and application of Ethereum to various sectors, and the interest of large companies to be part of the market. |
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| Support 1: 52,473.3 Support 2: 52,278.3 Support 3: 52,153.8 Resistance 1: 52,792.8 Resistance 2: 52,917.3 Resistance 3: 53,112.2 Pivot Point: 52,597.8 |
| The price is above the 200-day moving average. At the moment it is at resistance 2. If the Bulls manage to overcome this zone, the next target is USD$57,812. Pivot point at USD$52,597. RSI leaving the overbought zone. |
| DOW JONES +0.14% |
| The U.S. market returns after Labor Day. Downward pressure is expected on Wall Street indices, mainly due to the bad NFP data. At the moment, the Dow Jones is up 0.14% and is trading at 35,414. In Europe, the indices are in negative territory, and traders are aware of the UK house price data, the ZEW index of investor confidence in Germany and the quarterly GDP of the Euro Zone. |
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| Support 1: 35,400.9 Support 2: 35,389.6 Support 3: 35,375.9 Resistance 1: 35,425.9 Resistance 2: 35,439.6 Resistance 3: 35,450.9 Pivot Point: 35,414.6 |
| The index has presented several oscillations between 35,130 and 35,513. The price is at the pivot point, where a change of trend could occur. The index is slightly above the 200-day moving average. RSI neutral. Possible sideways movement before Wall Street opens. |
| GOLD -0.84% |
| The gold price is currently correcting 0.84% and is trading at USD$1,818. Wall Street is back from the holiday, and analysts expect high volatility in the market. The NFP was well below market estimates. As a result, the price of gold could see a change in trend. On the other hand, Treasury yields have shown an upward movement, which generates a loss of investor interest in the metal for the time being. |
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| Support 1: 1,818.55 Support 2: 1,816.65 Support 3: 1,814.05 Resistance 1: 1,823.05 Resistance 2: 1,825.65 Resistance 3: 1,827.55 Pivot Point: 1,821.15 |
| Despite the price decline, gold is above the 200-day moving average. The price is at support 1. If the selling strength continues, the price could reach USD$1,810. Pivot point at USD$1,821. RSI in oversold zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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