Daily Review for May 04, 2021
The FED sees no change in the monetary policy strategy and thus gold gains popularity in the allocation of portfolios. Bulls are looking at USD$1,800 per Troy ounce.
The market expects good financial performance from Pfizer. The company announced a tablet to fight the coronavirus, which will be launched in the market before the end of 2021.
Global market opens mixed. Futures in the US are in red, the market in Europe opens mixed and in Asia stock exchange indices turns positive.
Crude oil market is looking to consolidate the USD$65 per barrel zone. Bulls are looking to climb towards USD$70 per barrel. Expected increase in supply, due to OPEC+ production raise levels and the lifting of Iran sanctions.
EURUSD trending negative. ECB looks to turn positive EU economy. Vaccine lag, is creating recession.
| GOLD -0.37% |
| Gold prices start the week with upward movements driven by the FED. In the Asian session, the price reached USD$1,800 per Troy ounce. Yesterday, New York Fed President John Williams stated that the current monetary policy strategy will be maintained. He also commented that the economic growth forecast for the U.S. is the strongest in 40 years and is expected to be around 7% per year. Traders remained cautious and preferred to hold long positions in gold. |
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| Support 1: 1,784.01 Support 2: 1,781.33 Support 3: 1,779.01 Resistance 1: 1,789.01 Resistance 2: 1,791.33 Resistance 3: 1,794.01 Pivot Point: 1,786.33 |
| Price is between support 1 and resistance 1. Gold is looking for support to set a trend. Bulls mark the target at 1,825 and 1,840. Main support at 1,779. Pivot point at 1,786. |
| S&P 500 -0.17% |
| Today, Pfizer’s will announce its financial results. The market expects an EPS of 0.7773 and an revenue of USD$13.67 Billion. The company is part of the S&P500. In the race for the Covid-19 vaccine, the company has been the winner. Pfizer have recently announced that it is working on a tablet to fight the virus. During the evaluation stages the outcome was favorable, so it is possible to have the medicine launched before the end of 2021. Meanwhile, the S&P500 is retreating 0.17% and is trading at 4,178. |
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| Support 1: 4,175.54 Support 2: 4,173.46 Support 3: 4,172.17 Resistance 1: 4,178.91 Resistance 2: 4,180.20 Resistance 3: 4,182.28 Pivot Point: 4,176.83 |
| Price is bouncing off support 2. Expected trading range between 4,172 and 4,182. Pivot point at 4.176. RSI neutral. Possible sideway trend at 4.186. Bulls maintain the target at 4.200. |
| CRUDE OIL -0.22% |
| Rapid economic recovery and industrial pace are driving demand for crude oil in the market. The price has failed to overcome resistance at 65, mainly due to the expected increase in supply by OPEC+. The impact of India’s crude oil production due to the coronavirus could help boost prices. The market also expects an increase in the short-term supply as oil sanctions in Iran are lifted. |
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| Support 1: 64.31 Support 2: 64.18 Support 3: 64.07 Resistance 1: 64.55 Resistance 2: 64.66 Resistance 3: 64.79 Pivot Point: 64.42 |
| Price is at resistance 1. Bulls target is 70. Expected trading range between 64.07 and 64.79. Pivot point at 64.42. RSI neutral near overbought zone. Possible price movement towards resistance 2. |
| EURUSD -0.32% |
| The currency remains above the 1.2020 mark. It is currently down 0.32%. The European Union started to accelerate the vaccination process. The purpose of the governments is to reactivate the economy as soon as possible and they are already talking about enabling tourism for vaccinated travelers. Last week, the EU went into recession, so the ECB wants to turn the economy around. |
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| Support 1: 1.2033 Support 2: 1.2030 Support 3: 1.2026 Resistance 1: 1.2040 Resistance 2: 1.2044 Resistance 3: 1.2047 Pivot Point: 1.2037 |
| Bearish trend. Main support at 1.2033. Bears are looking for the 1.1990 area. Expected trading range between 1.2026 and 1.2047. Pivot point at 1.2037. RSI in oversold zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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