Daily Market Report: September 10, 2021

Latest events and figures - make your trading smarter by following the daily summary of the hottest market news and announcements.

Oil dives on China- led output ”relaxation”

US Stock Market

Last: 15,593

Pivot: 15,530

Review:

US stocks were lower after the close on Thursday, as losses in the Healthcare, Telecoms and Utilities sectors led shares lower. At the close on NYSE, the Dow Jones Industrial Average fell 0.43% to hit a new 1-month low, while the S&P 500 index lost 0.46%, and the NASDAQ Composite index declined 0.25%

Technical comment:

The RSI is below its neutrality area at 50% but reversing up.

Preference scenario:

Should the price travel above 15530.00, it would give traders enough leeway to go long, opening to the upside with targets at 15700.00 and 15750.00 in extension.

Alternative scenario:

Comparatively, a breakout below 15530.00 would open the downside with 15460.00 and 15370.00 as targets.

Resistance 15,700 15,750 15,830
Support 15,530 15,460 15,370
Oil dives on China- led output ”relaxation”
USDCAD

Last: 1.266

Pivot: 1.27

Review:

The USDCAD pair struggles below 1.2700.

Technical comment:

The upward potential is likely to be limited by the resistance at 1.2700.

Preference scenario:

The price braking out below 1.2700 would open the door to the downside and short-selling, with targets at 1.2620 and 1.2590 in extension.

Alternative scenario:

However, a breakout above 1.2700 cannot be ignored, which, should it happen, it would call for 1.2730 and 1.2760 as its next targets.

Resistance 1.27 1.273 1.276
Support 1.262 1.259 1.256
Oil dives on China- led output ”relaxation”
Gold

Last: 1,795

Pivot: 1,787

Review:

The gold markets initially tried to rally during the trading session on Thursday but gave back the gains to show signs of weakness.

Technical comment:

The RSI lacks momentum.

Preference scenario:

Buyers will have an opportunity to go long if the price breaks the 1787.00 level and continues to climb. This would make 1802.00 the next target with 1808.00 in extension.

Alternative scenario:

On the flip side, should the price break out below 1787.00, it would open the door to further downslides facing support at 1781.00 and then 1775.00 in extension.

Resistance 1,802 1,808 1,815
Support 1,787 1,781 1,775
Oil dives on China- led output ”relaxation”
Oil

Last: 67.92

Pivot: 68.35

Review:

Crude prices slumped almost 2% on Thursday as top importer China announced plans to release oil reserves to reduce pressure on its refineries. A mixed US inventory drawdown also added to the oil’s downside.

Technical comment:

As long as the resistance at 68.35 is not surpassed, the risk of the break below 67.55 remains high.

Preference scenario:

A breakout below 68.35 would spur some selling action, with potential profit-taking targets at 67.55 and 67.10 in extension.

Alternative scenario:

A breakout above 68.35 would open the upside with 68.80 and 69.35 as targets.

Resistance 68.35 68.8 69.35
Support 67.55 67.1 66.5
Oil dives on China- led output ”relaxation”
EURUSD

Last: 1.1823

Pivot: 1.1805

Review:

EURUSD edged higher to 1.1815.

Technical comment:

A support base at 1.1805 has formed and has allowed for a temporary stabilisation.

Preference scenario:

An opportunity to go long would unfold if the price managed to break above 1.1805 with targets at 1.1840 and 1.1855 in extension.

Alternative scenario:

However, the chance for it breaking below 1.1805 cannout be ruled out. Should it happen, the downside ould be open with 1.1790 and 1.1775 as targets.

Resistance 1.184 1.1855 1.187
Support 1.1805 1.179 1.1775
Oil dives on China- led output ”relaxation”
GBPUSD

Last: 1.3837

Pivot: 1.381

Review:

GBPUSD was flat at 1.3769.

Technical comment:

The RSI calls for a new upleg.

Preference scenario:

GBP bulls will get a shot in the arm from the price breaking out above 1.3810 with targets at 1.3860 and 1.3875 in extension.

Alternative scenario:

While the downside scenario cannot be completely ignored, despite the upside supporting technical setup, a breakout below 1.3810 remains likely. Should it happen, the next price targets would be at 1.3795 and 1.3780 in extension.

Resistance 1.386 1.3875 1.389
Support 1.381 1.3795 1.378
Oil dives on China- led output ”relaxation”

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