Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Dow Jones Industrial Average closed at record highs on Wednesday after the Fed predicted a fast economic recovery from the coronavirus pandemic and said it would maintain its interest rate at close to zero. It was the first time the Dow closed above 33,000 points.
The US economy is heading for its strongest growth in nearly 40 years, the Federal Reserve said on Wednesday, and central bank policymakers are pledging to keep their foot on the gas despite an expected surge of inflation.
The Dow Jones Industrial Average rose 0.58% to end at 33,015.37 points, while the S&P 500 gained 0.29% to 3,974.12. The Nasdaq Composite climbed 0.40% to 13,525.20.
Asian shares and U.S. stock futures rose on Thursday after the Federal Reserve committed to maintaining accommodative monetary policy and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.75% to 890.70 levels. Australian index lost 0.73% to 6,745.90. Japanese Nikkei traded 1.01% higher to 30,216.75.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index advance 0.32% to 3,862.15, Germany’s DAX rose 0.91% to 14,727.30 and France’s CAC higher 0.10% to 6,060.33 and U.K.’s FTSE 100 lost 0.17% to 6,750.15.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 4.74% to 1.719.
Oil prices dropped for a fifth day on Thursday after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook.
Spot Brent crude oil lost 1.00% to $63.97 per barrel. US West Texas Intermediate crude declined 1.07% to $67.27 a barrel.
The yellow metal traded 0.45% higher to 1736.87 dollars per ounce.
Market Wrap: Forex
The U.S. dollar fell on Wednesday after the Federal Reserve said it does not expect to raise interest rates through all of 2023, contrary to market expectations.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.19% to 91.615.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.25% today. This left the pairing trading around $1.19460.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.36% to 109.210 level.
Other commodity-related currency mixed against U.S dollar, AUD/USD higher 0.10% to 0.77990 and NZD/USD down 0.21% to 0.72220.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.19520
Preferable Price Action: Take long positions above pivot level with targets at 1.19880 & 1.20080 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.19150 & 1.18940.
Comment: Pair above its 20MA & 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
GBP/USD Intraday: Support at 1.39220
Our pivot point is at 1.39220
Preferable Price Action: Buy positions above pivot with targets at 1.39900 & 1.40200 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38520 & 1.38220.
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 produced
USD/JPY Intraday: Support at 109.100
Our pivot point is at 109.100
Preferable Price Action: Buy position above with the target at 109.390 and 109.540 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.830 and 108.670.
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: Trend may reverse
Our pivot point is at 0.78220
Preferable Price Action: Sell Positions below pivot with targets at 0.77790 & 0.77500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78630 & 0.78890 as targets.
Comment: Pair below its 20MA 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: Resistance at 64.80
Our pivot point is at 64.80
Preferable Price Action: Below pivots sell Oil with 63.60 & 63.10 as targets.
Alternative Price Action: Buy crude above pivot with targets at 66.00 and 66.50 in extension.
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: Trend downside
Our pivot point is at 1744.80
Preferable Price Action: Further downside to 1734.00 & 1728.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1756.00 and 1762.00.
Comment: MACD in positive territory and price above 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: Trend on the upside
Our pivot point is 32,990.00
Preferable Price Action: Take buy positions above pivot with targets at 33,130.00 & 33,230.00.
Alternative Price Action: Below 32,990.00 looks for further downside to 32,850.00 & 32,750.00.
Comment: Price above its 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 produced7