Daily Market Outlook, 20 June, 2022

Market Wrap: Stocks, Bonds, Commodities

US stocks closed with a modest bounce on Friday but still suffered the biggest weekly percentage decline in two years as investors wrestled with the growing likelihood of a recession while global central banks tried to stamp out inflation.

The Dow Jones Industrial Average fell 38.29 points to 29,888.78, the S&P 500 gain 8.07 points to 3,674.84 and the Nasdaq Composite add 152.25 points to 10,798.35.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 0.29% to 648.52 levels. Australian index lower 0.64% to 6,433.40. Japanese Nikkei Index drop 0.74% to 25,771.22.

European stocks were positive on Monday, with the Stoxx Europe 50 Index rose 0.50% to 3,454.55, Germany’s DAX advance 0.40% to 13,177.45, and France’s CAC gain 0.20% to 5,894.53, and U.K.’s FTSE 100 surge 0.49% to 7,050.00.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 0.24% to 3.2310.

Oil prices rose on Monday in volatile trade, reversing earlier losses, as tightening supplies outweighed concerns about slowing global economic growth and fuel demand.

Spot Brent crude oil subtract 0.60% to $112.42 per barrel. US West Texas Intermediate crude is down 0.43% to $107.56 a barrel.

The yellow metal gold is advance 0.03% to 1,841.20 dollars per ounce.

Market Wrap: Forex 

The dollar slipped in early trading in Europe on Monday, failing to get much support from talk of the Federal Reserve hiking again by 75 basis points at its next meeting.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is a fell 0.25% to 104.227.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.19% today. This left the pair trading around $1.05180.

The Japanese yen was positive against the U.S. dollar on Monday as the stock up. Today USD/JPY is drop 0.23% to 134.660 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD gain 0.71% to 0.69790, and NZD/USD up 0.67 to 0.63460 level.


EUR/USD Intraday: Trend on the upside

Our pivot point is at 1.05080

Preferable Price Action: Take buy positions above pivot level with targets at 1.06000 & 1.06770 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.04300 & 1.03700.

Comment: RSI above 50 levels 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


GBP/USD Intraday: In a consolidation zone

Our pivot point is at 1.22750

Preferable Price Action: Sell positions below pivot with targets at 1.21450 & 1.20540 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.24000 & 1.25020.

Comment:  RSI at 50 levels 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


USD/JPY Intraday: Resistance level at 135.220

Our pivot point is at 135.220

Preferable Price Action: Sell position below pivot with the target at 134.250 and 133.510 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 136.090 and 136.870.

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


AUD/USD Intraday: Trend on the upside

Our pivot point is at 0.69680

Preferable Price Action: Buy Positions above pivot with targets at 0.70370 & 0.70780 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.69110 & 0.68590 as targets.

Comment: RSI above 50 levels 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


CRUDEOIL Intraday: Trend on the downside

Our pivot point is at 110.15

Preferable Price Action: Below pivots sell oil with 106.11 & 103.27 as targets.

Alternative Price Action: Buy crude above pivot with targets at 114.16 and 117.15 in extension.

Comment: MACD is in the negative 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: In a consolidation zone

Our pivot point is 1839.10

Preferable Price Action: Further upside to 1863.00 and 1883.60

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1818.30 and 1800.40.

Comment: MACD is flat territory.

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 support level at 29,846.00

Our pivot point is 29,846.00 

Preferable Price Action: Take buy positions above pivot with targets at 30,258.00 & 30,534.00.

Alternative Price Action: Below 29,846.00 looks for further downside to 29,460.00 & 29,129.00.

Comment: RSI above 50 levels and Pair above 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

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