Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed lower on Wednesday, unable to halt the prior day’s selloff, as investors set aside optimism about the economic recovery by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen.
The Dow Jones Industrial Average flat to 32,418.15, the S&P 500 lost 21.37 points (0.55%) to 3,889.15 and the Nasdaq Composite dropped 265.81 points (2.01%) to 12,961.89.
Asian markets will likely open mixed on Thursday after global equities dipped and U.S. investors considered which stock market sectors would most benefit from strengthening growth.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.29% to 851.23 levels. Australian index gained 0.17% to 6,790.00. Japanese Nikkei jumped 1.14% to 28,730.50.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index lost 1.07% to 3,792.05, Germany’s DAX down 1.05% to 14,457.65 and France’s CAC lower 0.85% to 5,896.56, and U.K.’s FTSE 100 fell 1.14% to 6,635.78.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.66% to 1.603.
Oil prices skidded around 2% as fuel demand concerns re-emerged alongside fresh coronavirus pandemic lockdowns, trimming overnight gains spurred by the grounding of a giant container ship blocking crude shipments through the Suez Canal.
Spot Brent crude oil slumped 2.97% to $59.36 per barrel. US West Texas Intermediate crude slipped 3.00% to $62.59 a barrel.
The yellow metal traded lower 0.34% to 1727.20 dollars per ounce.
Market Wrap: Forex
Economic growth and higher bond yields will keep the U.S. dollar stronger for now, but the rally will lose steam later in 2021 because of a dovish Federal Reserve and rising fiscal deficit in the United States, economists and strategists said.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.17% to 92.683.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.07%today. This left the pairing trading around $1.18040.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY up 0.36% to 109.120 level.
Other commodity-related currency higher against the U.S dollar, AUD/USD rose 0.11% to 0.75910 and NZD/USD flat to 0.69630.
EUR/USD Intraday: Strong Trend downside
Our pivot point is at 1.18380
Preferable Price Action: Take Short positions below pivot level with targets at 1.18000 & 1.17800 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.18750 & 1.18950.
Comment: Pair below its 55MA & 20MA and RSI at oversold 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 downside
Our pivot point is at 1.37250
Preferable Price Action: Sell positions below pivot with targets at 1.36650 & 1.36250 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37920 & 1.38220.
Comment: Price is 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
USD/JPY Intraday: Break Resistance levels
Our pivot point is at 108.880
Preferable Price Action: Buy position above with the target at 109.120 and 109.270 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.630 and 108.480.
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 downside
Our pivot point is at 0.76190
Preferable Price Action: Sell Positions below pivot with targets at 0.75700 & 0.75450 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76700 & 0.76950 as targets.
Comment: Pair below its 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: Support at 59.40
Our pivot point is at 59.40
Preferable Price Action: Above pivots buy Oil with 61.20 & 62.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 57.60 and 56.80 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: Support at 1729.30
Our pivot point is at 1729.30
Preferable Price Action: Further upside to 1738.70 & 1743.60.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1719.70 and 1714.80.
Comment: MACD in negative territory and price below 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: Support at 32,380.00
Our pivot point is 32,380.00
Preferable Price Action: Take buy positions above pivot with targets at 32,600.00 & 32,750.00.
Alternative Price Action: Below 32,380.00 looks for further downside to 32,170.00 & 32,020.00.
Comment: Price 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 produced7