Market Wrap: Stocks, Bonds, Commodities
The Dow Jones Industrial Average hit fresh record highs after the House passed President Joe Biden’s $1.9 trillion stimulus plan, and as inflation fears ease.
The Dow Jones Industrial Average rose 464.30 points (1.46%) to 32,297.02, the S&P 500 gained 23.37 points (0.60%) to 3,875.44, and the Nasdaq Composite flat to 13,068.83.
Asian stocks extended their rebound from a two-month low on Thursday after a report on U.S. consumer prices calmed concerns about inflation and lifted the Dow Jones industrial average to a record close.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.86% to 888.60 levels. Australian index flat to 6,713.90. Japanese Nikkei traded 0.60% higher to 29,211.64.
European stocks were advance on monday, with the Stoxx Europe 50 Index gained 0.40% to 3,835.25, Germany’s DAX rose 0.05% to 14,544.60, and France’s CAC higher 0.41% to 6,014.14 and U.K.’s FTSE 100 advance 0.15% to 6,736.00.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.60% to 1.535.
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Spot Brent crude oil gained 0.39% to $64.69 per barrel. US West Texas Intermediate crude rose 0.32% to $68.12 a barrel.
The yellow metal traded 0.80% higher to 1737.40 dollars per ounce.
Market Wrap: Forex
The dollar languished near one-week lows on Thursday after benign data on U.S. consumer prices and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.12% to 91.727.
The Euro US Dollar (EUR/USD) widely traded pair advance 0.15% today. This left the pairing trading around $1.19410.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.26% to 108.660 level.
Other commodity-related currency gained against the U.S dollar, AUD/USD higher 0.53% to 0.77750 and NZD/USD gained 0.44% to 0.72270.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.17840
Preferable Price Action: Take short positions below pivot level with targets at 1.17540 & 1.17400 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.18130 & 1.18270.
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: Support at 1.37630
Our pivot point is at 1.37630
Preferable Price Action: Buy positions above pivot with targets at 1.38000 & 1.38250 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37250 & 1.37000.
Comment: Price above at 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
USD/JPY Intraday: Major trend upside
Our pivot point is at 109.810
Preferable Price Action: Buy position above with the target at 110.100 and 110.300 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.500 and 109.300.
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 upside
Our pivot point is at 0.76420
Preferable Price Action: Buy Positions above pivot with targets at 0.76660 & 0.76830 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76180 & 0.76000 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Support at 61.05
Our pivot point is at 61.05
Preferable Price Action: Above pivots buy Oil with 61.95 & 62.50 as targets.
Alternative Price Action: Sell crude below pivot with targets at 60.20 and 59.60 in extension.
Comment: Crude above its 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: Trend on the downside
Our pivot point is at 1713.90
Preferable Price Action: Further downside to 1703.00 & 1696.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1724.40 and 1731.60.
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 33,100.00
Our pivot point is 33,100.00
Preferable Price Action: Take buy positions above pivot with targets at 33,350.00 & 33,500.00.
Alternative Price Action: Below 33,100.00 looks for further downside to 32,850.00 & 32,700.00.
Comment: Price above its 20MA and 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