Market Wrap: Stocks, Bonds, Commodities
Wall Street ended lower on Wednesday after the U.S. Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery.
The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support.
The Dow Jones Industrial Average fell 0.48% to end at 33,820.38 points, while the S&P 500 lost 0.08% to 4,183.18. The Nasdaq Composite dropped 0.28%, to 14,051.03.
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 advance Thursday, 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: Trend on the upside
Our pivot point is at 1.21010
Preferable Price Action: Take long positions above pivot level with targets at 1.21300 & 1.21500 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20700 & 1.20500.
Comment: Pair above its 55MA & 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
GBP/USD Intraday: Support at 1.39400
Our pivot point is at 1.39400
Preferable Price Action: Buy positions above pivot with targets at 1.39800 & 1.40000 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.39000 & 1.38800.
Comment: Price above it’s 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 upside
Our pivot point is at 108.650
Preferable Price Action: Buy position above with the target at 109.060 and 109.260 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.230 and 108.030.
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: Support at 0.77780
Our pivot point is at 0.77780
Preferable Price Action: Buy Positions above pivot with targets at 0.78060 & 0.78230 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77500 & 0.77330 as targets.
Comment: Pair above its 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 produced
CRUDEOIL Intraday: strong trend on upside
Our pivot point is at 63.65
Preferable Price Action: Above pivots buy Oil with 64.70 & 65.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 62.60 and 62.10 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: Break resistance level
Our pivot point is at 1773.70
Preferable Price Action: Further upside to 1784.70 & 1790.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1762.80 and 1756.90
Comment: MACD in positive territory and price above its 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 33,900.00
Our pivot point is 33,900.00
Preferable Price Action: Take buy positions above pivot with targets at 34,000.00 & 34,060.00.
Alternative Price Action: Below 33,900.00 looks for further downside to 33,800.00 & 33,740.00.
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