Market Wrap: Stocks, Bonds, Commodities
US stock futures and Asian shares regained some footing on Tuesday following a small bounce in European shares as investors looked to whether high-flying US tech shares could recover from their recent rout.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.34% to 720.30 levels. Australian index advances 1.10% to 6,007.80. Japanese Nikkei surge 0.80% to 23,274.20.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index down 0.20% to 3,307.45, Germany’s DAX fell 0.10% to 13,097.55 and France’s CAC lost 0.25% to 5,040.85 and U.K.’s FTSE 100 rose 0.40% to 5,958.33.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.27% to 0.707.
Oil prices fell on Monday after Saudi Arabia made its deepest monthly price cuts to supply for Asia in five months and as uncertainty over Chinese demand clouds the market’s recovery.
Spot Brent crude oil fell 0.70% to $41.72 per barrel. US West Texas Intermediate crude lost 2.44% to $38.78 a barrel.
The yellow metal traded 0.12% higher to 1930.50 dollars per ounce.
Market Wrap: Forex
The dollar held steady on Tuesday as investors weighed whether an accommodative turn from the European Central Bank later this week could hit the euro, while the pound nursed losses due to Brexit uncertainty.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.46% to 93.148.
The Euro US Dollar (EUR/USD) widely traded pair down 0.10% today. This left the pairing trading around $1.18050.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY flat to 106.220 level.
Other commodity related currency mixed against U.S dollar, AUD/USD up 0.20% to 0.72880 and NZD/USD down 0.05% to 0.66880.
EUR/USD Intraday: Support at 1.8000
Our pivot point is at 1.18000
Preferable Price Action: Take Long positions above level with targets at 1.18350 & 1.18552 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17666 & 1.17472.
Comment: Pair above its 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: Break support levels
Our pivot point is at 1.31700
Preferable Price Action: Short positions below pivot with targets at 1.31074 & 1.30700 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.32366 & 1.32742.
Comment: Price below 55MA & 20MA and MACD in negative 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: support at 106.170
Our pivot point is at 106.170
Preferable Price Action: Long position above pivot with the target at 106.393 and 106.540 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.942 and 105.791.
Comment: price below 55MA 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 produced
AUD/USD Intraday: Support at 0.72760
Our pivot point is at 0.72760
Preferable Price Action: Long positions above pivot with targets at 0.73130 & 0.73372 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72390 & 0.72133 as targets.
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
CRUDEOIL Intraday: Resistance at 39.65
Our pivot point is at 39.65
Preferable Price Action: Sell crude below pivot with targets at 38.75 and 38.23 in extension.
Alternative Price Action: Above pivots buy Oil with 40.57 & 41.09 as targets..
Comment: Crude below Its 20MA & 55MA and MACD in negative 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 1923.70
Our pivot point is at 1923.70
Preferable Price Action: Further upside to 1938.22 & 1946.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1908.76 and 1900.69.
Comment: MACD in positive territory 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: Minor trend upside
Our pivot point is at 28240.00
Preferable Price Action: Take buy positions above pivot with targets at 28560.00 & 28760.00 in extension.
Alternative Price Action: Above 28240.00 looks for further downside to 27920.00 & 27710.00.
Comment: Price 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 produced7