Market Wrap: Stocks, Bonds, Commodities
U.S. stocks ended down slightly on March 30, with investors selling tech-related growth shares after U.S. Treasury yields hit a 14-month high.
The Dow Jones Industrial Average fell 104.41 points (0.31%) to 33,066.96, the S&P 500 lost 12.54 points (0.32%) to 3,958.55 and the Nasdaq Composite dropped 14.25 point (0.11%) to 13,045.39.
Asian stocks were on the back foot on Wednesday while the safe-haven dollar held near a one-year high as Treasury yields resumed their upward march, hitting sentiment even as Chinese data underpinned signs of a solid global economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside of Japan eased from a one-week high of 682.36 points to be last at 680.04 and still a fair distance away from an all-time peak of 745.89 touched just last month.
European stocks were declined on Wednesday, with the Stoxx Europe 50 Index slipped 0.12% to 3,921.95, Germany’s DAX flat to 15,015.90 and France’s CAC lower 0.13% to 6,080.34 and U.K.’s FTSE 100 lost 0.24% to 6,754.99.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield advance 0.63% to 1.737.
OPEC+ has raised concerns that uncertainties may impact the recovery in oil demand due to rising numbers of virus infections globally and lockdown measures, according to a report from the group’s experts panel meeting seen by Reuters on Wednesday.
Spot Brent crude oil slipped 0.20% to $64.80 per barrel. US West Texas Intermediate crude lost 0.12% to $60.49 a barrel.
The yellow metal traded flat to 1685.70 dollars per ounce.
Market Wrap: Forex
The dollar handed back some gains in early European trading Wednesday as bond yields edged off highs, but remained in demand as fiscal stimulus and an aggressive vaccine rollout are seen prompting a strong U.S. economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.20% to 93.132.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.26% today. This left the pairing trading around $1.17430.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.20% to 110.560 level.
Other commodity-related currency higher against U.S dollar, AUD/USD up 0.32% to 0.76170 and NZD/USD rose 0.20% to 0.69920.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.17140
Preferable Price Action: Take long positions above pivot level with targets at 1.17530 & 1.17730 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.16750 & 1.16550.
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
GBP/USD Intraday: Support at 1.37200
Our pivot point is at 1.37200
Preferable Price Action: Buy positions above pivot with targets at 1.37850 & 1.38150 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36540 & 1.36240.
Comment: Price above at 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
USD/JPY Intraday: Strong trend upside
Our pivot point is at 110.450
Preferable Price Action: Buy position above with the target at 110.880 and 111.160 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.020 and 109.730.
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 on the downside
Our pivot point is at 0.76270
Preferable Price Action: Sell Positions below pivot with targets at 0.75930 & 0.75750 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76600 & 0.76780 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Support at 60.35
Our pivot point is at 60.35
Preferable Price Action: Above pivots buy Oil with 61.50 & 62.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.20 and 58.50 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: Trend on the downside
Our pivot point is at 1692.00
Preferable Price Action: Further downside to 1679.50 & 1671.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1704.60 and 1712.60.
Comment: MACD in negative territory and price below 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 32,920.00
Our pivot point is 32,920.00
Preferable Price Action: Take buy positions above pivot with targets at 33,140.00 & 33,260.00.
Alternative Price Action: Below 32,920.00 looks for further downside to 32,700.00 & 32,580.00.
Comment: Price below its 20MA and 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