Daily Market Outlook, 28 July, 2022

Market Wrap: Stocks, Bonds, Commodities

The Federal Reserve said on Wednesday it would not flinch in its battle against the most intense breakout of inflation in the United States since the 1980s even if that means a “sustained period” of economic weakness and a slowing jobs market.

The Dow Jones Industrial Average rose 436.05 points to 32,197.59, the S&P 500 gain 102.56 points to 4,023.61 and the Nasdaq Composite add 469.85 points to 12,032.42.

MSCI’s index of Asia-Pacific stocks outside Japan is ascend 0.46% to 645.91 levels. Australian index higher 0.97% to 6,889.70. Japanese Nikkei Index ascend 0.36% to 27,815.48.

European stocks were mixed on Thursday, with the Stoxx Europe 50 Index rose 0.19% to 3,614.55, Germany’s DAX decline 0.15% to 13,146.08, and France’s CAC ascend 0.31% to 6,277.53, and U.K.’s FTSE 100 slipped 0.18% to 7,335.60.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a positive 1.60% to 2.7760.

Oil rose more than $1 a barrel on Thursday, extending gains from the previous session, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices.

Spot Brent crude oil add 1.55% to $103.25 per barrel. US West Texas Intermediate crude is up 1.50% to $98.72 a barrel.

The yellow metal gold is advance 1.52% to 1,745.30 dollars per ounce.

Market Wrap: Forex 

The dollar lost ground on Thursday as investors digested an as-expected 75 basis point interest rate rise by the Federal Reserve and eyed comments about potential future hikes.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is fell 0.19% to 106.130.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.02% today. This left the pair trading around $1.02040.

The Japanese yen was positive against the U.S. dollar on Thursday as the stock up. Today USD/JPY is drop 0.83% to 135.410 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD gain 0.06% to 0.69950, and NZD/USD up 0.42 to 0.62870 level.


EUR/USD Intraday: In a consolidation zone

Our pivot point is at 1.01890

Preferable Price Action: Take buy positions above pivot level with targets at 1.02480 & 1.02990 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.01340 & 1.00910.

Comment: RSI at 50 levels and Pairs 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


GBP/USD Intraday: Trend on the upside

Our pivot point is at 1.21550

Preferable Price Action: Buy positions above pivot with targets at 1.22580 & 1.23300 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.20670 & 1.19970.

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 136.250

Our pivot point is at 136.250

Preferable Price Action: Sell position below pivot with the target at 135.000 and 134.220 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 137.100 and 137.900.

Comment: MACD is 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


AUD/USD Intraday: Support level at 0.69870

Our pivot point is at 0.69870

Preferable Price Action: Buy Positions above pivot with targets at 0.70420 & 0.70880 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.69370 & 0.68940 as targets.

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


CRUDEOIL Intraday: Trend on the upside

Our pivot point is at 97.57

Preferable Price Action: Above pivots buy oil with 100.14 & 102.36 as targets.

Alternative Price Action: Sell crude below pivot with targets at 95.11 and 93.04 in extension.

Comment: MACD is in the 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


XAU/USD Intraday: Major support level at 1738.00

Our pivot point is 1738.00

Preferable Price Action: Further upside to 1761.90 and 1776.00

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1720.20 and 1705.90.

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: Major trend on the upside

Our pivot point is 32,145.00

Preferable Price Action: Take buy positions above pivot with targets at 32,352.00 & 32,534.00.

Alternative Price Action: Below 32,145.00 looks for further downside to 31,971.00 & 31,824.00.

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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