Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq closed at record highs on Friday, as data pointed to some pockets of strength in the U.S. economy and business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.
The Dow Jones Industrial Average rose 191.05 points (0.69%) to 27,930.78, the S&P 500 gained 11.73 points (0.35%) to 3,397.24 and the Nasdaq Composite added 46.85 points (0.42%) to 11,311.80.
Asian shares started cautiously on Monday on jitters over heady valuations though sentiment was underpinned by coronavirus hopes after the U.S. Food & Drug Administration (FDA) authorized the use of blood plasma from recovered patients as a treatment option.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.91% to 721.70 levels. Australian index advances 0.30% to 6,129.60. Japanese Nikkei rose 0.28% to 22,985.51.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 1.24% to 3,310.85, Germany’s DAX gained 1.33% to 12,955.20 and France’s CAC up 1.66% to 4,977.70 and U.K.’s FTSE 100 advance 1.23% to 6,086.80.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lower 0.32% to 0.638.
Crude oil prices nudged higher on Monday as storms bore down on the Gulf of Mexico, shutting more than half the region’s oil production, although gains were capped by ongoing concerns about demand from coronavirus lockdowns.
Spot Brent crude Oil up 0.70% to $45.24 per barrel. US West Texas Intermediate crude futures were advance 0.72% to $42.70 a barrel.
The yellow metal traded 0.20% higher to 1942.50 dollars per ounce.
Market Wrap: Forex
The dollar steadied against major currencies on Monday as traders looked to more data for a gauge on the health of the global economy and the Federal Reserve’s annual Jackson Hole retreat for guidance on the outlook for U.S. monetary policy.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.15% to 92.105.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.14% today. This left the pairing trading around $1.18120.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY gained 0.10% to 105.850 level.
Other commodity-related currency gained against U.S dollar, AUD/USD rose 0.26% to 0.71800 and NZD/USD flat to 0.65390.
EUR/USD Intraday: Resistnace at 1.18270
Our pivot point is at 1.18270
Preferable Price Action: Take Short positions below level with targets at 1.17802 & 1.17550 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.18742 & 1.18990.
Comment: Pair above its 55MA and RSI near 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Support level at 1.30770
Our pivot point is at 1.30770
Preferable Price Action: Long positions above pivot with targets at 1.31459 & 1.31758 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.30088 & 1.29789.
Comment: Price above 20MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Minor trend on upside
Our pivot point is at 105.620
Preferable Price Action: Long position above pivot with the target at 106.104 and 106.358 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.127 and 104.879.
Comment: price above 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Support at 0.71440
Our pivot point is at 0.71440
Preferable Price Action: Long positions above pivot with targets at 0.72041 & 0.72310 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70878 & 0.70614 as targets.
Comment: Pair above its 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Trend upside
Our pivot point is at 42.15
Preferable Price Action: Buy crude above pivot with targets at 43.00 and 43.30 in extension.
Alternative Price Action: Below pivots sell Oil with 41.34 & 41.03 as targets.
Comment: Crude above Its 55MA & 20MA and MACD in posistive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1927.10
Preferable Price Action: Further upside to 1952.07& 1965.77 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1902.31 and 1889.72.
Comment: RSI above 50 levels and price above its 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Break resistance level at 27915
Our pivot point is at 27915
Preferable Price Action: Take buy positions above pivot with targets at 28238.21 & 28382.80 in extension.
Alternative Price Action: Below 27915.20 looks for further downside to 27589.25 & 27433.89.
Comment: Price above its 20MA & 55MA and RSI at oversold levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7