Daily Market Outlook, 12 August, 2022

Market Wrap: Stocks, Bonds, Commodities

The Nasdaq and S&P 500 retreated to close lower on Thursday on the realization the Federal Reserve still needs to aggressively boost interest rates to fully tame rising consumer prices despite fresh evidence of cooling inflation.

The Dow Jones Industrial Average rose 27.16 points to 33,336.67, the S&P 500 lose 2.97 points to 4,207.27 and the Nasdaq Composite subtract 74.89 points to 12,779.91.

MSCI’s index of Asia-Pacific stocks outside Japan is ascend 0.26% to 651.89 levels. Australian index lower 0.54% to 7,032.50. Japanese Nikkei Index ascend 2.62% to 28,546.98.

European stocks were positive on Friday, with the Stoxx Europe 50 Index rose 0.52% to 3,776.45, Germany’s DAX advance 0.62% to 13,780.20, and France’s CAC ascend 0.48% to 6,576.15, and U.K.’s FTSE 100 surged 0.60% to 7,510.95.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields a negative 0.08% to 2.8860.

Oil prices rose by over 1% on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring natural gas prices lead some consumers to switch to oil.

Spot Brent crude oil add 0.26% to $99.89 per barrel. US West Texas Intermediate crude is down 0.04% to $94.23 a barrel.

The yellow metal gold is decline 0.24% to 1,802.75 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar edged higher in early European trade Friday, rebounding to a degree after a two-day selloff as weaker than expected inflation data prompted a rethink of the Federal Reserve’s likely tightening path.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which is rose 0.23% to 105.233.

The Euro US Dollar (EUR/USD) is a widely traded pair that is down 0.21% today. This left the pair trading around $1.02950.

The Japanese yen was positive against the U.S. dollar on Friday as the stock up. Today USD/JPY is ascend 0.25% to 133.330 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD gain 0.24% to 0.71220, and NZD/USD up 0.21 to 0.64480 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.03220

Preferable Price Action: Take sell positions below pivot level with targets at 1.02530 & 1.02020 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.03910 & 1.04400.

Comment: RSI below 50 levels 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


GBP/USD Intraday: Trend on the downside

Our pivot point is at 1.22000

Preferable Price Action: Sell positions below pivot with targets at 1.21370 & 1.20920 in extension.

Alternative Price Action: The price below pivot would call for further upside to 1.22680 & 1.23150.

Comment:  RSI below 50 levels 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


USD/JPY Intraday: Trend on the upside

Our pivot point is at 133.140

Preferable Price Action: Buy position above pivot with the target at 133.840 and 134.360 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 132.500 and 131.940.

Comment: MACD is positive territory 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


AUD/USD Intraday: Support level at 0.71210

Our pivot point is at 0.71210

Preferable Price Action: Buy Positions above pivot with targets at 0.71720 & 0.72070 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.70760 & 0.70400 as targets.

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


CRUDEOIL Intraday: Trend on the upside

Our pivot point is at 93.12

Preferable Price Action: Above pivots buy oil with 96.60 & 98.63 as targets.

Alternative Price Action: Sell crude below pivot with targets at 90.61 and 88.53 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: Resistance level at 1792.90

Our pivot point is 1792.90

Preferable Price Action: Further downside to 1780.10 and 1770.90

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1805.00 and 1813.80.

Comment: MACD is 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


Dow Jones Intraday: Trend on the upside

Our pivot point is 33,430.00

Preferable Price Action: Take buy positions above pivot with targets at 33,816.00 & 34,050.00.

Alternative Price Action: Below 33,430.00 looks for further downside to 33,105.00 & 32,908.00.

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

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