Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rose on Tuesday as investors hoped the Federal Reserve would stick with its supportive policy stance as the central bank’s two-day meeting got under way.
The Dow Jones Industrial Average rose almost flat to 27,995.6, the S&P 500 gained 17.66 points (0.52%) to 3,401.2 and the Nasdaq Composite added 133.67 points (1.21%) to 11,190.32.
Asian shares were set for a mixed open on Wednesday as investors awaited the Federal Reserve’s view on the economy at the end of its policy meeting, although upbeat Chinese and U.S. economic data is likely to give the sentiment a tailwind.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.37% to 731.30 levels. Australian index gained 1.04% to 5,956.10. Japanese Nikkei rose 0.10% to 23,475.53.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index rose 0.30% to 3,342.35, Germany’s DAX up 0.21% to 13,245.25 and France’s CAC loss 0.23% to 5,079.31 and U.K.’s FTSE 100 slipped 0.10% to 6,100.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.50% to 0.676.
Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted U.S. offshore oil and gas production and an industry report showed a big drop in U.S. crude stockpiles.
Spot Brent crude Oil advance 2.05% to $39.06 per barrel. US West Texas Intermediate crude up 1.75% to $39.08 a barrel.
The yellow metal traded 0.30% higher to 1964.50 dollars per ounce.
Market Wrap: Forex
The dollar was down on Wednesday in Asia, with traders fine-tuning their positions ahead of a U.S. Federal Reserve policy meeting.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.05% to 93.060.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.05% today. This left the pairing trading around $1.18490.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY down 0.06% to 105.360 level.
Other commodity-related currency higher against U.S dollar, AUD/USD rose 0.20% to 0.73150 and NZD/USD up 0.15% to 0.67310.
EUR/USD Intraday: Support at 1.18320
Our pivot point is at 1.18320
Preferable Price Action: Take Long positions above level with targets at 1.18756 & 1.19001 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17897 & 1.17652.
Comment: Pair 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 produced
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.28750
Preferable Price Action: Long positions above pivot with targets at 1.29202 & 1.29452 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28284 & 1.28023.
Comment: Price above 20MA & 55MA 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 105.570
Our pivot point is at 105.570
Preferable Price Action: Short position below pivot with the target at 105.122 and 104.871 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.015 and 106.262.
Comment: price below 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: Major Support at 0.72960
Our pivot point is at 0.72960
Preferable Price Action: Long positions above pivot with targets at 0.73412 & 0.73663 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72515 & .0.72255 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: Minor trend on upside
Our pivot point is at 38.65
Preferable Price Action: Buy crude above pivot with targets at 39.85 and 40.30 in extension.
Alternative Price Action: Below pivots sell Oil with 37.40 & 36.93 as targets.
Comment: Crude above Its 20MA & 55MA 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 1958.20
Our pivot point is at 1958.20
Preferable Price Action: Further upside to 1967.00 & 1972.30 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1949.20 and 1943.46.
Comment: MACD in positive territory and price above its 20MA & 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: Major support at 27970.00
Our pivot point is at 27970.00
Preferable Price Action: Take buy positions above pivot with targets at 28220.00 & 28350.00 in extension.
Alternative Price Action: Below 27970.00 looks for further downside to 27700.00 & 27560.00.
Comment: Price 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 produced7