Market Wrap: Stocks, Bonds, Commodities
Tepid results from Tesla and 3M weighed on Wall Street on Tuesday, with the S&P 500 and Dow ending near flat as investors focused on the wave of earnings reports from Microsoft, Alphabet, and other corporate heavyweights.
The Dow Jones Industrial Average rose 0.01% to end at 33,984.93 points, while the S&P 500 lost 0.02% to 4,186.72. The Nasdaq Composite dropped 0.34%, to 14,090.22.
Asian shares were mixed on Wednesday as already high valuations discouraged investors from buying equities ahead of a closely-watched U.S. Federal Reserve meeting.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.11% to 892.50 levels. Australian index gained 0.44% to 7,064.70. Japanese Nikkei traded 0.21% higher to 29,053.97.
European stocks were advanced Wednesday, with the Stoxx Europe 50 Index fell 0.10% to 4,009.05, Germany’s DAX rose 0.29% to 15,290.60, and France’s CAC higher 0.18% to 6,284.98, and U.K.’s FTSE 100 gained 0.22% to 6,960.30.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yield rose 1.20% to 1.641.
Oil was steady after OPEC said it would proceed with plans to produce more barrels to the market, despite a virus resurgence in some areas including India pressuring the demand outlook.
Spot Brent crude oil fell 0.15% to $65.78 per barrel. US West Texas Intermediate crude lost 0.10% to $62.85 a barrel.
The yellow metal traded lower 0.61% to 1788.80 dollars per ounce.
Market Wrap: Forex
The dollar index is ready to take its direction from the FOMC policy statement and a speech by American President Joe Biden on Wednesday, as it seeks to extend recovery from an eight-week low touched earlier in the week against a basket of currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.12% to 90.995.
The Euro US Dollar (EUR/USD) is a widely traded pair down 0.12% today. This left the pairing trading around $1.20730.
The Japanese yen fell against the U.S. dollar on Wednesday as the stock pushes lower. Today US/JPY rose 0.21% to 108.880 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD lost by 0.28% to 0.77410 and NZD/USD flat to 0.72040.
EUR/USD Intraday: Resistance at 1.20930
Our pivot point is at 1.20930
Preferable Price Action: Take short positions below pivot level with targets at 1.20630 & 1.20480 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.21200 & 1.21340.
Comment: Pair below its 55MA & 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
GBP/USD Intraday: Trend on the downside
Our pivot point is at 1.38940
Preferable Price Action: Sell positions below pivot with targets at 1.38590 & 1.38390 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39290 & 1.39490.
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 produced
USD/JPY Intraday: Trend on the upside
Our pivot point is at 108.820
Preferable Price Action: Buy position above with the target at 109.150 and 109.350 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.480 and 108.280.
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 0.77600
Preferable Price Action: Sell Positions below pivot with targets at 0.77300 & 0.77160 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77900 & 0.78040 as targets.
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
CRUDEOIL Intraday: Support at 62.25
Our pivot point is at 62.25
Preferable Price Action: Above pivots buy Oil with 63.20 & 63.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 61.30 and 60.80 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: Resistance at 1774.30
Our pivot point is at 1774.30
Preferable Price Action: Further downside to 1766.90 & 1762.20.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1781.70 and 1786.30
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: In consolidation zone
Our pivot point is 33,980.00
Preferable Price Action: Take sell positions below pivot with targets at 33,890.00 & 33,840.00.
Alternative Price Action: Above 33,980.00 looks for further upside to 34,070.00 & 34,120.00.
Comment: Price below 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 produced7