Daily Market Outlook, 22 June, 2022

Market Wrap: Stocks, Bonds, Commodities

Wall Street’s major indices jumped over 2 percent on Tuesday as investors scooped up shares of mega-cap growth and energy companies after the stock market swooned last week on worries over a global economic downturn.

The Dow Jones Industrial Average rose 641.47 points to 30,530.25, the S&P 500 gain 89.95 points to 3,764.79 and the Nasdaq Composite add 270.95 points to 11,069.30.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 2.29% to 644.66 levels. Australian index lower 0.23% to 6,508.50. Japanese Nikkei Index drop 0.37% to 26,149.55.

European stocks were negative on Wednesday, with the Stoxx Europe 50 Index fell 1.98% to 3,423.85, Germany’s DAX decline 2.221% to 13,002.44, and France’s CAC lose 1.70% to 5,863.43, and U.K.’s FTSE 100 slipped 1.18% to 7,073.00.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 2.28% to 3.2300.

Oil prices skidded in early trade on Wednesday amid a push by US President Joe Biden to bring down soaring fuel costs, including pressure on major US firms to help ease the pain for drivers during the country’s peak summer demand.

Spot Brent crude oil subtract 4.25% to $109.77 per barrel. US West Texas Intermediate crude is down 4.66% to $104.44 a barrel.

The yellow metal gold is decline 0.72% to 1,825.60 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar pushed higher in early European trade Wednesday with Fed Chair Jerome Powell expected to talk tough on inflation during his testimony to Congress, while sterling fell in wake of more elevated inflation data.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is a rose 0.30% to 104.525.

The Euro US Dollar (EUR/USD) is a widely traded pair that is down 0.24% today. This left the pair trading around $1.05000.

The Japanese yen was positive against the U.S. dollar on Wednesday as the stock up. Today USD/JPY is drop 0.26% to 136.260 level.

Another commodity-related currency negative against the U.S dollar, AUD/USD lose 1.11% to 0.68930, and NZD/USD down 1.25 to 0.62490 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.04900

Preferable Price Action: Take sell positions below pivot level with targets at 1.04390 & 1.04030 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.05320 & 1.05670.

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 1.22100

Preferable Price Action: Sell positions below pivot with targets at 1.21320 & 1.20770 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.22750 & 1.23230.

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: In a consolidation zone

Our pivot point is at 135.920

Preferable Price Action: Buy position above pivot with the target at 137.920 and 139.350 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 134.180 and 133.000.

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: Trend on the downside

Our pivot point is at 0.69250

Preferable Price Action: Sell Positions below pivot with targets at 0.68410 & 0.67800 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.69980 & 0.70580 as targets.

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


CRUDEOIL Intraday: In a consolidation zone

Our pivot point is at 104.52

Preferable Price Action: Below pivots sell oil with 99.32 & 95.67 as targets.

Alternative Price Action: Buy crude above pivot with targets at 108.65 and 112.39 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: Trend on the downside

Our pivot point is 1830.80

Preferable Price Action: Further downside to 1819.10 and 1809.50

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1841.80 and 1849.70.

Comment: MACD is 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


Dow Jones Intraday: Major trend on the downside

Our pivot point is 30,189.00 

Preferable Price Action: Take sell positions below pivot with targets at 29,772.00 & 29,470.00.

Alternative Price Action: Above 30,189.00 looks for further upside to 30,582.00 & 30,863.00.

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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