Daily Review for September 10, 2021
Interest rates in the Euro Zone remain at 0%. The ECB announced the recalibration of the level of purchases of fixed income instruments, in order to seek inflation stability.
Joe Biden’s administration pressures the population to get vaccinated. Scientists are concerned about possible mutations arising from countries where the vaccination campaign has been low.
China announced that it will start selling its strategic crude oil reserves in order to lower market prices. Traders are testing the possible effect on commodities.
Gold price recovered the USD$1,800 zone. However, it could come under pressure due to China’s strategy.
| DAX 30 +0.50% |
| The ECB did not change interest rates. They remained at 0%. The Bank announced the beginning of the recalibration of its purchases of fixed income instruments. This means that the bank will start to decrease its monthly purchase volume, thus seeking to stabilize prices. Today, ECB President Christine Lagarde will continue her statement on the bank’s strategy. Meanwhile, the DAX 30 is up 0.50% and is trading at 15,644. |
 |
| Support 1: 15,649.4 Support 2: 15,644.2 Support 3: 15,635.4 Resistance 1: 15,663.4 Resistance 2: 15,672.2 Resistance 3: 15,677.4 Pivot Point: 15,658.2 |
| The price is between resistance 1 and the pivot point. The upper limit to overcome is at 15,666. If it is overcome, the upward momentum could push the index up to 15,848. Trading range between 15,635 and 15,677. Pivot point at 15,658. RSI neutral. |
| DOW JONES +0.32% |
| The President of the United States, Joe Biden, continues to pressure the population to get vaccinated. Several companies are starting to work from the office again, including Investment Banks, which require vaccination certificates to enter offices. Cases of the Delta variant continue to increase. Scientists are concerned about the countries where vaccination has not been carried out to a large extent, where new variants of the virus could mutate. Meanwhile, the Dow Jones is currently up 0.32% and is trading at 34,991. |
 |
| Support 1: 34,989.3 Support 2: 34,973.6 Support 3: 34,961.3 Resistance 1: 35,017.3 Resistance 2: 35,029.6 Resistance 3: 35,045.3 Pivot Point: 35,001.6 |
| Price is below the 200-day moving average. Expected trading range between 34,961 and 35,045. Pivot point for trend change at 35,001. If the Asian market momentum continues, the index could reach 35,000 again. RSI neutral. |
| CRUDE OIL +0.73% |
| Despite China’s strategy to start selling its strategic crude oil reserves in order to lower market prices, crude oil continues to rise, this time rising 0.73% and trading at USD$68.66 per barrel. As for US inventories, they decreased by 1.5 million barrels; however, the market was expecting 4.6 million, which punished the price, making it lose its upward momentum. Traders are paying close attention to China and the possible sale of high crude volumes. |
 |
| Support 1: 68.47 Support 2: 68.30 Support 3: 68.15 Resistance 1: 68.79 Resistance 2: 68.94 Resistance 3: 69.11 Pivot Point: 68.62 |
| The price is bouncing off support 1 and is approaching resistance 1. If the upward momentum continues, the price could resume the path towards USD$70 per barrel. Trading range between USD$68.15 and USD$69.11. Pivot point at USD$68.62. RSI neutral. |
| GOLD +0.25% |
| After the negative close yesterday of Wall Street and European stock markets, gold prices recovered the USD$1,800 level. During the Asian session, equities futures have witnessed upward movements, which could put pressure on the metal’s momentum. Gold is currently up 0.25% and is trading at USD$1,801 per Troy ounce. Traders are keeping an eye on China, which is looking to drive commodity prices lower. Gold could be affected by this strategy, especially in the event of a strengthening of the USD. |
 |
| Support 1: 1,799.61 Support 2: 1,794.78 Support 3: 1,791.61 Resistance 1: 1,807.61 Resistance 2: 1,810.78 Resistance 3: 1,815.61 Pivot Point: 1,802.78 |
| The price is between resistance 1 and 2. Bulls are looking for USD$1,818. Expected trading range between USD$1,791 and USD$1,815. Pivot point at USD$1,802. RSI approaching the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
Risk Disclaimer
Any information/articles/materials/content provided by Capitalix or displayed on its website is intended to be used for educational purposes only and does not constitute investment advice or a consultation on how the client should trade.
Although Capitalix has ensured that the content of such information is accurate, it is not responsible for any omission/error/miscalculation and cannot guarantee the accuracy of any material or any information contained herein.
Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the client and Capitalix accepts no liability for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.
Risk Warning: Forex/CFDs trading involves significant risk to your invested capital. Please read and make sure that you fully understand our Risk Disclosure Policy.
You should ensure that, depending on your country of residence, you are allowed to trade Capitalix.com products. Please ensure that you are familiar with the company’s risk disclosure.