Market Wrap: Stocks, Bonds, Commodities
Investors retrenched and avoided major risks across multiple markets on Tuesday as markets awaited fresh guidance from the U.S. Federal Reserve on Wednesday.
Asian shares were subdued on Wednesday with investors wary of any hint of hawkishness from the U.S. Federal Reserve given lofty asset valuations rely so heavily on an endless supply of super-cheap money.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.62% to 883.74 levels. Australian index rose 0.10% to 7,386.20. Japanese Nikkei traded lower 0.51% to 29,291.10.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index gained 0.07% to 4,146.50, Germany’s DAX fell 0.10% to 15,714.50, and France’s CAC gained 0.15% 6,649.00, and U.K.’s FTSE 100 advance 0.32% to 7,196.15.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields down 0.11% to 1.487.
Oil prices rose on Wednesday, with Brent gaining for a fifth consecutive session, as falling stockpiles and a recovery in demand encouraged traders.
Spot Brent crude oil gained 0.39% to $74.28 per barrel. US West Texas Intermediate crude higher 0.40% to $72.41 a barrel.
The yellow metal traded 0.27% higher to 1860.12 dollars per ounce.
Market Wrap: Forex
The dollar held near a one-month high against a basket of currencies on Wednesday as investors tried to ascertain if the Federal Reserve might alter the language on its stimulus following a recent jump in U.S. inflation.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, down 0.07% to 90.435.
The Euro US Dollar (EUR/USD) is a widely traded pair that higher 0.22% today. This left the pairing trading around $1.21430.
The Japanese yen lost against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY flat to 110.040 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD down 0.10% to 0.77020, and NZD/USD gained 0.12% to 0.71460.
EUR/USD Intraday: Support at 1.21159
Our pivot point is at 1.21159
Preferable Price Action: Take long positions above pivot level with targets at 1.21485 & 1.21712 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.20809 & 1.20606.
Comment: Pair above its 55MA & 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
GBP/USD Intraday: Support at 1.40875
Our pivot point is at 1.40875
Preferable Price Action: Buy positions above pivot with targets at 1.41385 & 1.41733 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40402 & 1.40106.
Comment: Price above its 55MA & 20MA and RSI at oversold 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 109.930
Preferable Price Action: Buy position above pivot with the target at 110.200 and 110.345 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.660 and 109.496.
Comment: price below its 55MA & 20MA 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 may reverse to upside
Our pivot point is at 0.76840
Preferable Price Action: Buy Positions above pivot with targets at 0.77725 & 0.77454 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.76450 & 0.76240 as targets.
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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 71.95
Preferable Price Action: Above pivots buy Oil with 73.18 & 73.94 as targets.
Alternative Price Action: Sell crude below pivot with targets at 69.49 and 69.55 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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 1864.90
Our pivot point is 1864.90
Preferable Price Action: Further downside to 1848.80 & 1839.10
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1848.80 and 1839.10.
Comment: MACD in negative territory and price below its 20MA.
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 downside
Our pivot point is 34,347.00
Preferable Price Action: Take Sell positions below pivot with targets at 34,228.00 & 34,145.00.
Alternative Price Action: Above 34,347.00 looks for further upside to 34,470.00 & 34,457.00.
Comment: Price above its 20MA and RSI at50 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