Market Wrap: Stocks, Bonds, Commodities
The S&P boasted its steepest August percentage gain in more than three decades it ended Monday slightly lower and the Dow also lost ground as investors took a pause although the Nasdaq closed higher thanks to high-flying stocks including Apple Inc.
The Dow Jones Industrial Average fell 223.82 points (0.78%) to close at 28,430.05, the S&P 500 lost 0.22% to 3,500.31 and the Nasdaq Composite added 79.82 points (0.68%) to 11,775.46.
Asian stocks were set to weaken on Tuesday following a softer Wall Street close while the dollar slipped as markets digested new Federal Reserve comments that suggested rates will stay low for an extended period.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.84% to 730.20 levels. Australian index down 1.77% to 5,953.40. Japanese Nikkei flat to 23,138.10.
European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index higher 0.40% to 3,284.55, Germany’s DAX advance 0.48% to 13,007.90 and France’s CAC gain 0.18% to 4,956.28 and U.K.’s FTSE 100 down 0.78% to 5,916.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 2.41% to 0.710.
Oil prices rose in early trade on Tuesday, reversing overnight losses, as investors shifted to risk assets and out of the safe-haven U.S. dollar, which slid to a more than two-year low.
Spot Brent crude Oil rose 1.08% to $45.77 per barrel. US West Texas Intermediate crude up 1.13% to $43.08 a barrel.
The yellow metal traded 0.90% higher to 1988.50 dollars per ounce.
Market Wrap: Forex
The dollar languished near multi-year lows against most major currencies on Tuesday as the Federal Reserve’s new policy framework continued to fuel bets that U.S. rates will stay lower for longer than other countries.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.21% to 91.938.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.26% today. This left the pairing trading around $1.19680.
The Japanese yen gained against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY down 0.17% to 105.700 level.
Other commodity-related currency higher against U.S dollar, AUD/USD rose 0.22% to 0.73910 and NZD/USD advance 0.39% to 0.67580.
EUR/USD Intraday: Strong Trend on upside
Our pivot point is at 1.19640
Preferable Price Action: Take Long positions above level with targets at 1.20150 & 1.20450 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.19085 & 1.18776.
Comment: Pair above its 55MA & 20MA 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
GBP/USD Intraday: Support at 1.33890
Our pivot point is at 1.33890
Preferable Price Action: Long positions above pivot with targets at 1.34423 & 1.34727 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33336 & 1.33014.
Comment: Price above 55MA & 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: Resistance at 106.040
Our pivot point is at 106.040
Preferable Price Action: Short position below pivot with the target at 105.400 and 105.100 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.658 and 106.959.
Comment: price below 20MA & 55MA and RSI below 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: Major Trend upside
Our pivot point is at 0.73830
Preferable Price Action: Long positions above pivot with targets at 0.74330 & 0.74636 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.73296 & 0.72978 as targets.
Comment: Pair above its 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: Support at 42.85
Our pivot point is at 42.85
Preferable Price Action: Buy crude above pivot with targets at 43.52 and 43.83 in extension.
Alternative Price Action: Below pivots sell Oil with 42.17 & 41.83 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Support at 1977.40
Our pivot point is at 1977.40
Preferable Price Action: Further upside to 1995.80 & 2005.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1959.36 and 1949.49.
Comment: RSI at oversold levels and price above its 55MA & 20MA.
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: Support at 28380.00
Our pivot point is at 28380.00
Preferable Price Action: Take buy positions above pivot with targets at 28650.00 & 28800.00 in extension.
Alternative Price Action: Below 28380.00 looks for further downside to 28112.21 & 27968.70.
Comment: Price above its 20MA and RSI at 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 produced7