Daily Market Outlook, 13 June, 2022

Market Wrap: Stocks, Bonds, Commodities

US stocks posted their biggest weekly percentage declines since January and ended sharply lower on Friday as a steeper-than-expected rise in US consumer prices in May fuelled fears of more aggressive interest rate hikes by the Federal Reserve.

The Dow Jones Industrial Average fell 880.00 points to 31,392.79, the S&P 500 lose 116.96 points to 3,900.86 and the Nasdaq Composite subtract 414.20 points to 11,340.02.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 3.11% to 660.20 levels. Australian index lower 1.25% to 6,932.00. Japanese Nikkei Index drop 3.01% to 26,987.44.

European stocks were negative on Monday, with the Stoxx Europe 50 Index fell 2.08% to 3,524.35, Germany’s DAX decline 1.81% to 13,514.99, and France’s CAC lose 1.98% to 6,061.90, and U.K.’s FTSE 100 fell 1.35% to 7,218.42.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a positive 1.98% to 3.2190.

Oil prices slipped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China’s fuel demand, while worries about global inflation and economic growth further depressed the market.

Spot Brent crude oil subtract 1.75% to $119.87 per barrel. US West Texas Intermediate crude is down 1.85% to $118.44 a barrel.

The yellow metal gold is decline 0.87% to 1,859.20 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar soared in early European trade Monday, especially against the Japanese yen, as red-hot U.S. inflation data lifted Treasury yields at the start of a busy week for central banks.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is a rose 0.54% to 104.570.

The Euro US Dollar (EUR/USD) is a widely traded pair that is down 0.54% today. This left the pair trading around $1.04590.

The Japanese yen was positive against the U.S. dollar on Monday as the stock up. Today USD/JPY is rose 0.15% to 134.620 level.

Another commodity-related currency negative against the U.S dollar, AUD/USD lose 0.82% to 0.69940, and NZD/USD down 0.91 to 0.63130 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.05230

Preferable Price Action: Take sell positions below pivot level with targets at 1.03790 & 1.02750 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.06450 & 1.07590.

Comment: RSI below 50 levels and Pair below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


GBP/USD Intraday: Trend on the downside

Our pivot point is at 1.23250

Preferable Price Action: Sell positions below pivot with targets at 1.21300 & 1.20000 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.24940 & 1.26180.

Comment:  RSI below 50 levels pair below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


USD/JPY Intraday: Major trend on the upside

Our pivot point is at 134.480

Preferable Price Action: Buy position above pivot with the target at 135.850 and 136.930 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 133.300 and 132.280.

Comment: MACD is positive territory and Pair above 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


AUD/USD Intraday: Resistance level at 0.70500

Our pivot point is at 0.70500

Preferable Price Action: Sell Positions below pivot with targets at 0.69250 & 0.68420 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.71530 & 0.72380 as targets.

Comment: RSI below 50 levels and Pair below 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


CRUDEOIL Intraday: In a consolidation zone

Our pivot point is at 116.85

Preferable Price Action: Below pivots sell oil with 113.67 & 111.24 as targets.

Alternative Price Action: Buy crude above pivot with targets at 119.86 and 122.12 in extension.

Comment: MACD is in the negative territory and Pair below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


XAU/USD Intraday: May trend reverse from 1867.00

Our pivot point is 1867.00

Preferable Price Action: Further downside to 1852.50 and 1840.50

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1880.70 and 1893.30.

Comment: MACD is negative territory and pair below 20MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


Dow Jones Intraday: Major trend on the downside

Our pivot point is 31,221.00 

Preferable Price Action: Take sell positions below pivot with targets at 30,200.00 & 29,451.00.

Alternative Price Action: Above 31,221.00 looks for further upside to 32,149.00 & 32,826.00.

Comment: RSI below 50 levels and Pair below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced

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