Daily Market Outlook, 29 July, 2022

Market Wrap: Stocks, Bonds, Commodities

US stocks on Thursday rallied for a second day, with all three major indices ending up more than 1 percent as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

The Dow Jones Industrial Average rose 332.04 points to 32,529.63, the S&P 500 gain 48.82 points to 4,072.43 and the Nasdaq Composite add 130.17 points to 12,162.59.

MSCI’s index of Asia-Pacific stocks outside Japan is drop 0.68% to 641.98 levels. Australian index higher 0.81% to 6,945.20. Japanese Nikkei Index drop 0.05% to 27,801.64.

European stocks were positive on Friday, with the Stoxx Europe 50 Index rose 1.10% to 3,692.35, Germany’s DAX advance 0.83% to 13,391.95, and France’s CAC ascend 1.59% to 6,440.79, and U.K.’s FTSE 100 surge 0.64% to 7,392.65.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a positive 0.55% to 2.6960.

Oil prices gained about $1 in early trade on Friday, lifted by supply concerns and a weaker US dollar as attention turns to what OPEC and allies including Russia agree at a meeting next week marking the end of their 2020 output reduction pact.

Spot Brent crude oil add 1.83% to $103.69 per barrel. US West Texas Intermediate crude is up 1.92% to $98.28 a barrel.

The yellow metal gold is advance 0.65% to 1,761.70 dollars per ounce.

Market Wrap: Forex 

The Japanese yen headed toward its best month in almost three years on Friday as growth worries have driven U.S. yields sharply lower and squeezed speculators out of crowded short yen positions.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is fell 0.46% to 105.760.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.18% today. This left the pair trading around $1.02140.

The Japanese yen was positive against the U.S. dollar on Friday as the stock up. Today USD/JPY is drop 1.04% to 132.890 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD gain 0.21% to 0.70000, and NZD/USD up 0.17 to 0.62990 level.


EUR/USD Intraday: Trend on the upside

Our pivot point is at 1.02170

Preferable Price Action: Take buy positions above pivot level with targets at 1.02930 & 1.03470 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.01570 & 1.01110.

Comment: RSI above 50 levels 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


GBP/USD Intraday: Trend on the upside

Our pivot point is at 1.21860

Preferable Price Action: Buy positions above pivot with targets at 1.22900 & 1.23610 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.20990 & 1.20320.

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


USD/JPY Intraday: Major trend on the downside

Our pivot point is at 133.630

Preferable Price Action: Sell position below pivot with the target at 131.450 and 130.000 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 135.660 and 137.170.

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


AUD/USD Intraday: Trend on the upside

Our pivot point is at 0.70090

Preferable Price Action: Buy Positions above pivot with targets at 0.70660 & 0.71040 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.69600 & 0.69230 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: Support level at 96.04

Our pivot point is at 96.04

Preferable Price Action: Above pivots buy oil with 99.93 & 102.54 as targets.

Alternative Price Action: Sell crude below pivot with targets at 93.23 and 91.07 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 trend on the upside

Our pivot point is 1762.60

Preferable Price Action: Further upside to 1782.20 and 1797.00

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1745.70 and 1731.60.

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 32,508.00

Preferable Price Action: Take buy positions above pivot with targets at 32,825.00 & 33,057.00.

Alternative Price Action: Below 32,508.00 looks for further downside to 32,220.00 & 31,992.00.

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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