Watchlist: Oil, Gold and Dollar

What Happened Yesterday?

  • Selling pressure on the dollar index rose as 10-year US Treasury bond yields fell to 1.47% last day.
  • On the Wall Street side, buyers dominated the market. While establishing the new peak in 32630 region, SP500 tested the historical peak in 3950 region. Nasdaq completed the day with gains of over 2%.
  • on the other hand, rose to the 1.1990 level after the ECB monetary policy decision. After gaining up to 1.4000 resistance, it started to retreat. Commodity-backed parities also increased along with commodities. It just went horizontal.
  • Although ounce of gold rose to the level of 1739 during the day, it completed the day with sales in 1722. closed the day at $ 66.00 a barrel and returned some of its losses.
  • New decisions were taken at the ECB monetary policy meeting. The officials stated that they will strongly accelerate their bond purchases in the next quarter. On the statement, German bonds declined, while the EURUSD was not affected much. Governor Christine Lagarde stated that the central bank is closely monitoring exchange rates and will re-optimize the central bank’s financial instruments if necessary.
  • US President Joe Biden signed a $ 1.9 trillion support package. $ 1400 of aid checks are expected to be sent to US citizens by the end of the week.
  • In Italy, the use of the vaccine was banned after a 43-year-old soldier had a heart attack the day after receiving AstraZeneca vaccine. Upon this incident, complaints of “blood clotting” came from those who had the AstraZeneca vaccine in Denmark. After the complaints, the vaccine was temporarily suspended in Denmark.

What to Expect Today

XAU

Ounce of gold began to retreat after rising to the 1739 peak in the past day. It is currently testing 1710 support. There is a possibility that the price will be pulled up to 1695 in the short term. Then the resistances 1710 – 1720 and 1740 can be tested again. The 4H and above candlestick close below 1695 could again bring a decline to the levels 1685 and 1670.

  • Resistors: 1710 – 1720
  • Supports: 1703 – 1695
WTI

On the WTI side, the price posted a short-term rise to 66.15 after bottoming at 63.08. With the high selling pressure in this region, it seems to have entered a period of consolidation in the low timeframe. Its price is holding 65.50 support in the short term. If this support is broken, the support zones at 65.06 and 64.70 are waiting on the downside. Breaking 65.50 will increase the selling pressure.

On the upside, 66.15 is waiting as a critical resistance zone. Above this level 4h candle closing can strengthen buyers. Then, the critical regions waiting for the price of resistances 67.10 and 67.70

  • Resistors: 66,15 – 67,10
  • Supports: 65,50 – 64,70
DXY

It has been withdrawing since its 92,500 peak in the past week. The price retraced to the 91,470 region, the 38.2% fibonacci level. Consolidation resistance in the short term is at 91.875. Above this level, the 4H candlestick closing can strengthen buyers, pulling the price up to 92,000 psychological resistance and 92,150 above it. If the price declines again and closes candles below 91,650, it can strengthen the sellers and continue the withdrawal wave. In this scenario, there is a playing field up to 91.550 – 91.470 and 91.280 on the downside.

  • Resistors: 92.000 – 92.150
  • Supports: 91.650 – 91.550

Disclaimer: Investment information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy service is offered individually, taking into account the risk and return preferences of the individuals. The content, comments and recommendations contained herein are of a general nature, which are not in any way directive. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. The author is not responsible for any gain or loss resulting from the investment, information, comments and recommendations contained herein.

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