Market Wrap: Stocks, Bonds, Commodities
U.S. technology shares jumped on Thursday on optimism around a speedy economic recovery, although the Federal Reserve’s unexpectedly hawkish message on monetary policy kept the S&P 500 subdued.
The Dow Jones Industrial Average was down 192.50 points (0.57%) at 33,841.17 and the S&P 500 was gained 0.06% at 4,226.05. The Nasdaq Composite was advanced 152.87 points (1.09%) at 14,192.55.
Asian shares inched higher on Friday but were set for a weekly loss, while the US dollar hovered near two-month highs as investors continued to digest comments from the US Federal Reserve projecting interest rate hikes in 2023.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.19% to 878.43 levels. Australian index gained 0.48% to 7,394.50. Japanese Nikkei traded flat to 29,017.00.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index lost 0.27% to 4,139.89, Germany’s DAX fell 0.14% to 15,687.40, and France’s CAC slipped 0.13% 6,643.66, and U.K.’s FTSE 100 down 0.34% to 7,160.65.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields down 0.57% to 1.560.
Crude oil prices fell nearly 2% from their highest level in years on Thursday as the dollar strengthened after the US Federal Reserve signaled it might raise interest rates as soon as 2023.
Spot Brent crude oil lost 0.36% to $74.12 per barrel. US West Texas Intermediate crude down 0.36% to $71.89 a barrel.
The yellow metal plunged 2.70% to 1810.26 dollars per ounce.
Market Wrap: Forex
The dollar jumped on Thursday and hit a two-month high against a basket of currencies, a day after U.S. Federal Reserve officials surprised markets by projecting a hike in interest rates and end to emergency bond-buying sooner than expected.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.39% to 91.565.
The Euro US Dollar (EUR/USD) is a widely traded pair that lower 0.29% today. This left the pairing trading around $1.19570.
The Japanese yen rose against the U.S. dollar on Thursday as the stock pushes lower. Today US/JPY fell 0.10% to 110.560 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD rose 0.14% to 0.76200, and NZD/USD gained 0.28% to 0.70670.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.20131
Preferable Price Action: Take short positions below pivot level with targets at 1.19600 & 1.19300 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.20711 & 1.20975.
Comment: Pair below 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
GBP/USD Intraday: Resistance at 1.40143
Our pivot point is at 1.40143
Preferable Price Action: Sell positions below pivot with targets at 1.39606 & 1.39336 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.40565 & 1.40867.
Comment: Price below 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 110.117
Preferable Price Action: Buy position above pivot with the target at 110.892 and 111.055 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.117 and 109.877.
Comment: price above 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 on the downside
Our pivot point is at 0.76494
Preferable Price Action: Sell Positions below pivot with targets at 0.76006 & 0.75779 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76949 & 0.77170 as targets.
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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 71.13
Preferable Price Action: Above pivots buy Oil with 72.34 & 73.06 as targets.
Alternative Price Action: Sell crude below pivot with targets at 69.86 and 69.13 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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
XAU/USD Intraday: Resistance at 1826.56
Our pivot point is 1826.56
Preferable Price Action: Further downside to 1805.50 & 1788.89.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1848.49 and 1864.07.
Comment: MACD in negative territory and price below its 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 downside
Our pivot point is 34,072.00
Preferable Price Action: Take Sell positions below pivot with targets at 33,734.00 & 34,554.00.
Alternative Price Action: Above 34,072.00 looks for further upside to 34,374.00 & 34,572.00.
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