Daily Market Outlook, 04 August, 2022

Market Wrap: Stocks, Bonds, Commodities

Wall Street ended sharply higher on Wednesday, with strong profit forecasts from PayPal and CVS Health Corp lifting sentiment and helping elevate the Nasdaq to its highest level since early May.

The Dow Jones Industrial Average rose 416.33 points to 32,812.50, the S&P 500 gain 63.98 points to 4,155.17 and the Nasdaq Composite add 319.40 points to 12,668.16.

MSCI’s index of Asia-Pacific stocks outside Japan is ascend 0.58% to 640.53 levels. Australian index lower 0.01% to 6,974.90. Japanese Nikkei Index ascend 0.69% to 27,932.20.

European stocks were positive on Thursday, with the Stoxx Europe 50 Index rose 0.53% to 3,751.45, Germany’s DAX advance 0.80% to 13,696.24, and France’s CAC ascend 0.50% to 6,504.64, and U.K.’s FTSE 100 slipped 0.23% to 7,427.10.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 0.52% to 2.7340.

Oil prices rose in early Asian trade on Thursday, bouncing off multi-month lows in the previous session caused by data signalling weak US fuel demand.

Spot Brent crude oil add 0.14% to $96.87 per barrel. US West Texas Intermediate crude is up 0.22% to $90.81 a barrel.

The yellow metal gold is advance 0.79% to 1,790.40 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar handed back some of its earlier gains in European trade Thursday, while the pound was flat ahead of the latest Bank of England rate decision..

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is fell 0.13% to 106.240.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.14% today. This left the pair trading around $1.01790.

The Japanese yen was positive against the U.S. dollar on Thursday as the stock up. Today USD/JPY is ascend 0.31% to 134.280 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD gain 0.32% to 0.69650, and NZD/USD up 0.45 to 0.62980 level.


EUR/USD Intraday: Trend on the upside

Our pivot point is at 1.01710

Preferable Price Action: Take buy positions above pivot level with targets at 1.02380 & 1.02940 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.01130 & 1.00630.

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: Support level at 1.21450

Our pivot point is at 1.21450

Preferable Price Action: Buy positions above pivot with targets at 1.22620 & 1.23400 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.20560 & 1.19810.

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: Trend on the upside

Our pivot point is at 133.820

Preferable Price Action: Buy position above pivot with the target at 136.000 and 137.420 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 132.020 and 130.420.

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 upside

Our pivot point is at 0.69580

Preferable Price Action: Buy Positions above pivot with targets at 0.70300 & 0.70850 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.68960 & 0.68360 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: Major resistance level at 91.32

Our pivot point is at 91.32

Preferable Price Action: Below pivots sell oil with 86.74 & 83.27 as targets.

Alternative Price Action: Buy crude above pivot with targets at 95.33 and 98.83 in extension.

Comment: MACD is in the negative territory and Pairs 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: Support level at 1770.90

Our pivot point is 1770.90

Preferable Price Action: Further upside to 1795.40 and 1811.10

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1750.80 and 1734.20.

Comment: MACD is positive territory and Pairs above 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 32,795.00

Preferable Price Action: Take buy positions above pivot with targets at 32,998.00 & 33,165.00.

Alternative Price Action: Below 32,795.00 looks for further downside to 32,630.00 & 32,473.00.

Comment: RSI below 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

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