Daily Market Outlook, 16 June, 2022

Market Wrap: Stocks, Bonds, Commodities

The S&P 500 rallied on Wednesday to snap a five-session losing skid after a policy announcement by the Federal Reserve that raised interest rates to market expectations as the central bank seeks to fight rising inflation without sparking a recession.

The Dow Jones Industrial Average rose 303.70 points to 30,668.53, the S&P 500 gain 54.51 points to 3,789.99 and the Nasdaq Composite add 270.81 points to 11,099.16.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 0.82% to 654.20 levels. Australian index lower 0.15% to 6,591.10. Japanese Nikkei Index ascend 0.40% to 26,431.20.

European stocks were negative on Thursday, with the Stoxx Europe 50 Index fell 1.73% to 3,472.35, Germany’s DAX decline 1.91% to 13,225.68, and France’s CAC lose 1.59% to 5,936.13, and U.K.’s FTSE 100 slipped 1.48% to 7,162.83.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 0.57% to 3.3760.

Oil prices recovered on Thursday from a steep drop in the previous session, supported by tight oil supply and peak summer consumption, after a hefty U.S. rate hike sparked fears of slower economic growth and less fuel demand.

Spot Brent crude oil add 0.32% to $118.81 per barrel. US West Texas Intermediate crude is up 0.24% to $115.59 a barrel.

The yellow metal gold is advance 0.62% to 1,830.85 dollars per ounce.

Market Wrap: Forex 

Bearish bets on several Asian currencies hit a record high in the face of rising U.S. interest rates that supported the dollar, while repeated COVID-19 lockdowns threatened to disrupt economic recovery in China, a Reuters poll found on Thursday.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is a rose 0.26% to 105.207.

The Euro US Dollar (EUR/USD) is a widely traded pair that is down 0.52% today. This left the pair trading around $1.03890.

The Japanese yen was positive against the U.S. dollar on Thursday as the stock up. Today USD/JPY is ascend 0.37% to 134.320 level.

Another commodity-related currency negative against the U.S dollar, AUD/USD lose 0.63% to 0.69580, and NZD/USD down 0.72 to 0.62370 level.


EUR/USD Intraday: Resistance level at 1.04530

Our pivot point is at 1.04530

Preferable Price Action: Take sell positions below pivot level with targets at 1.03530 & 1.02800 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.05370 & 1.06000.

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 1.21790

Preferable Price Action: Sell positions below pivot with targets at 1.20000 & 1.18770 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.23300 & 1.24410.

Comment:  RSI below 50 levels 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


USD/JPY Intraday: Trend on the upside

Our pivot point is at 134.400

Preferable Price Action: Buy position above pivot with the target at 135.000 and 135.400 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 133.850 and 133.350.

Comment: MACD is positive territory and Pair above 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


AUD/USD Intraday: Trend on the downside

Our pivot point is at 0.69940

Preferable Price Action: Sell Positions below pivot with targets at 0.69050 & 0.68370 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.70750 & 0.71300 as targets.

Comment: RSI below 50 levels 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


CRUDEOIL Intraday: In a consolidation zone

Our pivot point is at 115.51

Preferable Price Action: Below pivots sell oil with 110.91 & 107.45 as targets.

Alternative Price Action: Buy crude above pivot with targets at 119.58 and 123.04 in extension.

Comment: MACD is in the flat territory 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


XAU/USD Intraday: Major resistance level at 1835.10

Our pivot point is 1835.10

Preferable Price Action: Further downside to 1809.60 and 1789.20

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1857.60 and 1875.50.

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: Trend on the downside

Our pivot point is 30,746.00 

Preferable Price Action: Take sell positions below pivot with targets at 29,827.00 & 29,063.00.

Alternative Price Action: Above 30,746.00 looks for further upside to 31,665.00 & 32,421.00.

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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