Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended lower on Tuesday, weighed down by energy and industrial stocks as investors awaited the result of the Federal Reserve’s two-day policy meeting.
The Dow Jones Industrial Average fell 0.39% to end at 32,825.95 points, while the S&P 500 lost 0.16% at 3,962.71. The Nasdaq Composite edged up 0.10% to 13,471.57.
Asian stocks were set to open mostly lower on Wednesday following a sell-off in US stocks as investors awaited the Federal Reserve’s meeting outcome. All eyes are on the US Fed whether the central bank will maintain near-zero interest rates amid the economy’s post-pandemic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.31% to 883.40 levels. Australian index declined 0.47% to 6,795.20. Japanese Nikkei traded 0.05% lower to 29,914.33.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index lost 0.10% to 3,846.16, Germany’s DAX rose 0.05% to 14,563.50 and France’s CAC lower 0.13% to 6,047.40 and U.K.’s FTSE 100 lost 0.22% to 6,787.80.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 0.24% to 1.611.
Trading in oil futures is now as heavy as it was in the first months of the COVID-19 crisis, according to market data and analysts, with oil bulls and bears rushing to hedge against jolts in the steady rise of prices.
Spot Brent crude oil gained 0.30% to $64.97 per barrel. US West Texas Intermediate crude rose 0.16% to $68.53 a barrel.
The yellow metal traded 0.20% higher to 1735.70 dollars per ounce.
Market Wrap: Forex
The U.S. dollar held gains against major currencies on Wednesday as investors looked to the U.S. Federal Reserve’s policy meeting for indications it could start rate hikes earlier or let bond yields rise further.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.10% to 91.955.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.05% today. This left the pairing trading around $1.18920.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.15% to 109.140 level.
Other commodity-related currency slipped against the U.S dollar, AUD/USD lower 0.19% to 0.77300 and NZD/USD down 0.11% to 0.71800.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.19210
Preferable Price Action: Take short positions below pivot level with targets at 1.18900 & 1.18750 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19510 & 1.19660.
Comment: Pair below its 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.39300
Preferable Price Action: Buy positions above pivot with targets at 1.39300 & 1.39550 in extension.
Alternative Price Action: The price bellow pivot would call for further downside to 1.38100 & 1.37850.
Comment: Price 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
USD/JPY Intraday: Support at 109.010
Our pivot point is at 109.010
Preferable Price Action: Buy position above with the target at 109.280 and 109.400 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.730 and 108.600.
Comment: price above 20MA & 50MA 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
AUD/USD Intraday: Support at 0.77180
Our pivot point is at 0.77180
Preferable Price Action: Buy Positions above pivot with targets at 0.77420 & 0.77570 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76950 & 0.76800 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Break resistance level
Our pivot point is at 64.85
Preferable Price Action: Above pivots buy Oil with 65.70 & 66.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.00 and 63.50 in extension.
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: Major support at 1733.00
Our pivot point is at 1733.00
Preferable Price Action: Further upside to 1739.70 & 1744.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1726.20 and 1721.80.
Comment: MACD in positive territory and price above 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: Trend on the upside
Our pivot point is 32,770.00
Preferable Price Action: Take buy positions above pivot with targets at 32,920.00 & 33,00.00.
Alternative Price Action: Below 32,770.00 looks for further downside to 32,620.00 & 32,530.00.
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