Market Wrap: Stocks, Bonds, Commodities
US stocks rallied on Friday, driving the S&P 500 to a near-record closing high, after factory data and new home sales underscored a booming economy while mega-cap stocks rose in anticipation of strong earnings reports next week.
Copper surged to the highest in a decade on expectations supply will tighten and demand is all-time high as the global economic recovery gains traction.
The Dow Jones Industrial Average rose 0.67% to 34,043.49 and the S&P 500 gained 1.09% at 4,180.17, The Nasdaq Composite added 1.44% to 14,016.81.
Asian stocks rose on Monday with Chinese shares near three-week highs as signs the world economic recovery was well on track bolstered risk appetite, while the U.S. dollar slipped to a two-month low.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.45% to 890.91 levels. Australian index lower 0.21% to 7,045.60. Japanese Nikkei traded 0.36% higher to 29,126.30.
European stocks were advance Monday, with the Stoxx Europe 50 Index gained 0.10% to 4,015.65, Germany’s DAX rose 0.22% to 15,312.30, and France’s CAC higher 0.10% to 6,262.28, and U.K.’s FTSE 100 flat to 6,936.33.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yield rose 0.45% to 1.574.
On Monday, oil prices fell on fears that surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer and as investors adjusted positions ahead of a planned increase in OPEC+ oil output from May.
Spot Brent crude oil fell 1.28% to $64.58 per barrel. US West Texas Intermediate crude lost 1.35% to $61.31 a barrel.
The yellow metal traded higher 0.11% to 1780.00 dollars per ounce.
Market Wrap: Forex
The dollar edged lower on Monday amid speculation that U.S. Federal Reserve Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting this week.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.11% to 90.737.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.20960.
The Japanese yen rose against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY fell 0.22% to 107.660 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD, rose by 0.48% to 0.77800 and NZD/USD gained at least 0.38% to 0.72130.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.20780
Preferable Price Action: Take long positions above pivot level with targets at 1.21170 & 1.21370 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20410 & 1.20210.
Comment: Pair above its 55MA an RSI near 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: Major support at 1.38960
Our pivot point is at 1.38960
Preferable Price Action: Buy positions above pivot with targets at 1.39470 & 1.39670 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38470 & 1.38270.
Comment: Price 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
USD/JPY Intraday: Trend on the downside
Our pivot point is at 107.870
Preferable Price Action: Sell position below with the target at 107.530 and 107.350 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.220 and 108.400.
Comment: price below 20MA & 50MA 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
AUD/USD Intraday: Break resistance level at 0.77630
Our pivot point is at 0.77630
Preferable Price Action: Buy Positions above pivot with targets at 0.77950 & 0.78150 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77310 & 0.77110 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: In consolidation zone
Our pivot point is at 61.85
Preferable Price Action: Below pivots sell Oil with 60.90 & 60.50 as targets.
Alternative Price Action: Buy crude above pivot with targets at 62.80 and 63.20 in extension.
Comment: Crude below 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: Resistance at 1783.70
Our pivot point is at 1783.70
Preferable Price Action: Further downside to 1776.70 & 1772.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1790.70 and 1794.50.
Comment: MACD in positive territory and price at 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: Trend on the upside
Our pivot point is 34,020.00
Preferable Price Action: Take buy positions above pivot with targets at 34,110.00 & 34,180.00.
Alternative Price Action: Below 34,020.00 looks for further downside to 33,930.00 & 33,860.00.
Comment: Price above 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