Daily Market Outlook, 27 July, 2022

Market Wrap: Stocks, Bonds, Commodities

US stocks ended sharply lower Tuesday as a profit warning by Walmart dragged down retail shares and exceptionally weak consumer confidence data also fueled fears about spending.

The Dow Jones Industrial Average fell 228.50 points to 31,761.54, the S&P 500 lose 45.79 points to 3,921.05 and the Nasdaq Composite subtract 220.09 points to 11,562.58.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 0.37% to 641.69 levels. Australian index higher 0.23% to 6,823.20. Japanese Nikkei Index ascend 0.22% to 27,715.75.

European stocks were positive on Wednesday, with the Stoxx Europe 50 Index rose 0.45% to 3,591.55, Germany’s DAX advance 0.03% to 13,100.51, and France’s CAC ascend 0.29% to 6,229.65, and U.K.’s FTSE 100 surge 0.47% to 7,338.00.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 0.27% to 2.7790.

Oil prices reversed early gains and settled lower on Tuesday, as investors worried about lower consumer confidence and braced for another 20 million barrels of crude oil to be released from the US Strategic Petroleum Reserve.

Spot Brent crude oil add 1.00% to $100.44 per barrel. US West Texas Intermediate crude is up 1.37% to $96.30 a barrel.

The yellow metal gold is advance 0.23% to 1,721.70 dollars per ounce.

Market Wrap: Forex 

The dollar edged further away from recent 20-year highs on Wednesday ahead of the U.S. Federal Reserve policy meeting, at which the central bank is expected to raise rates by another 75 basis points to tame soaring inflation.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is fell 0.14% to 106.890.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.25% today. This left the pair trading around $1.01390.

The Japanese yen was positive against the U.S. dollar on Wednesday as the stock up. Today USD/JPY is drop 0.05% to 136.840 level.

Another commodity-related currency mixed against the U.S dollar, AUD/USD gain 0.02% to 0.69390, and NZD/USD down 0.03 to 0.62310 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.01560

Preferable Price Action: Take sell positions below pivot level with targets at 1.00880 & 1.00340 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.02240 & 1.02800.

Comment: RSI below 50 levels and Pairs 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


GBP/USD Intraday: Support level at 1.20390

Our pivot point is at 1.20390

Preferable Price Action: Buy positions above pivot with targets at 1.21160 & 1.21730 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.19730 & 1.19160.

Comment:  RSI above 50 levels 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


USD/JPY Intraday: Trend reverse from 137.150

Our pivot point is at 137.150

Preferable Price Action: Sell position below pivot with the target at 136.220 and 135.420 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 137.850 and 138.510.

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: In a consolidation zone

Our pivot point is at 0.69330

Preferable Price Action: Buy Positions above pivot with targets at 0.69950 & 0.70400 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.68800 & 0.68400 as targets.

Comment: RSI above 50 levels.

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 upside

Our pivot point is at 94.64

Preferable Price Action: Above pivots buy oil with 97.73 & 100.11 as targets.

Alternative Price Action: Sell crude below pivot with targets at 92.07 and 89.96 in extension.

Comment: MACD is in the positive territory and Pairs 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


XAU/USD Intraday: Major support level at 1718.00

Our pivot point is 1718.00

Preferable Price Action: Further upside to 1738.20 and 1753.20

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1700.40 and 1687.20.

Comment: MACD is positive territory and Pairs 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


Dow Jones Intraday: Trend on the upside

Our pivot point is 31,897.00

Preferable Price Action: Take buy positions above pivot with targets at 32,142.00 & 32,310.00.

Alternative Price Action: Below 31,897.00 looks for further downside to 31,695.00 & 31,544.00.

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

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