Daily Review for June 14, 2021
Gold price falls about 1%, as Traders took profits at the USD$ 1,900 level.
This week the FED will make a decision on interest rates. Analysts expect rates to remain unchanged.
European market opens in positive territory. EuroStoxx 50 is up 0.50%.
During this week, the market will be on political interest. The NATO summit starts today and on Wednesday Biden will meet with Putin.
Bitcoin jumps 11% as a result of Elon Musk’s tweets.
According to Musk Tesla has only sold 10% of its position in Bitcoins.
EURUSD sideways as the market reacts to NATO discussions.
| GOLD -0.90% |
| After reaching USD$1,900 per Troy ounce, the gold price declined to the current level of USD$1,859. Price retreated in anticipation of this week’s FOMC meeting, where the committee will evaluate the interest rate hike. Analysts expect the FED to leave rates unchanged. However, traders started to take profits on gold taking advantage past week’s rally. The FED meeting will be held on Thursday, June 17, 2021. |
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| Support 1: 1,864.65 Support 2: 1,863.90 Support 3: 1,862.55 Resistance 1: 1,866.75 Resistance 2: 1,868.10 Resistance 3: 1,868.85 Pivot Point: 1,866.00 |
| The price is testing the 200-day moving average at USD$1.839. If the price breaks this level, the next zone to watch is USD$1.800. Trading range between 1.866 and 1.868. Pivot point at 1.866. RSI in overbought zone. |
| EURSTOXX 50 +0.50% |
| G7 leaders ended the week working on several fronts, including the pandemic and economic recovery. The Nato summit begins today, where issues related to the Russian-German gas pipeline (Nord stream 2), promoted by Gazprom, will be discussed. China’s interests will also be discussed. For the time being, the European market opens in positive territory, with the EuroStoxx 50 rising +0.50% and the FTSE100 +0.60%. |
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| Support 1: 4,122 Support 2: 4,121 Support 3: 4,120 Resistance 1: 4,124 Resistance 2: 4,125 Resistance 3: 4,126 Pivot Point: 4,123 |
| Bullish trend. Price is breaking resistance 1 at 4,123. Trading range between 4,120 and 4,126. Pivot point at 4,123. RSI is overbought. If the trend continues, the price could reach the level of 4.144. |
| BITCOIN +11.77% |
| Bitcoin price jumped 11.77% in response to Elon Musk’s tweet, in which he stated that Tesla could return using Bitcoins, as long as its mining is more environmentally sustainable. According to Musk, Tesla has only sold 10% of its position in Bitcoins. Bitcoin is currently trading at USD$39,440. Bulls are looking to take advantage of the rally, to reposition the crypto back above the USD$40,000 mark. |
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| Support 1: 39,301.6 Support 2: 39,016.3 Support 3: 38,839.1 Resistance 1: 39,764.0 Resistance 2: 39,941.1 Resistance 3: 40,226.4 Pivot Point: 39,478.7 |
| Price is at resistance 3. Trading range between 38,839 and 40,226. Pivot point at 39,478. RSI is overbought. If the price manages to overcome the resistance at 40,000, the next challenge for crypto is to reach and overcome the 200-day moving average at 42,500. |
| The week begins and the EURUSD had a significant decline to the current level of 1.2106. The NATO summit starts this week, and interesting currency movements are expected as the different topics of interest between Europe and the US are discussed. This week the market is leaning towards politics. Thus, analysts are looking forward to the meeting between Biden and Putin, which will take place next Wednesday. |
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| Support 1: 1.2096 Support 2: 1.2088 Support 3: 1.2081 Resistance 1: 1.2111 Resistance 2: 1.2118 Resistance 3: 1.2127 Pivot Point: 1.2103 |
| Expected trading range between 1.2111 and 1.2127. Pivot point at 1.2103. RSI neutral. Possible sideways movement while a trend is set. Bulls are looking to hold the current level and then move the price back towards the 1.2200 mark. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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