Market Wrap: Stocks, Bonds, Commodities
Wall Street rallied on Monday, with the Dow completing its strongest session in over three months as investors piled back into energy and other sectors expected to outperform as the economy rebounds from the pandemic.
The Dow Jones Industrial Average rose 1.76% to end at 33,876.97 points, while the S&P 500 gained 1.40% to 4,224.79. The Nasdaq Composite climbed 0.79% to 14,141.48.
Global shares extended their recovery on Tuesday, with Asian markets bouncing from four-week lows as traders focus on economic growth partly offset worries about any near-term rise in U.S. interest rates.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.05% to 872.10 levels. Australian index jumped 1.48% to 7,342.20. Japanese Nikkei traded advanced 3.12% to 28,884.15.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index lost 0.22% to 4,102.50, Germany’s DAX fell 0.30% to 15,555.80, and France’s CAC gained 0.05% 6,604.60, and U.K.’s FTSE 100 rose 0.22% to 7,077.85.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields rose 0.25% to 1.489.
Oil prices soared on Monday, gaining on a pause in talks to end U.S. sanctions on Iranian crude, and as the dollar retreated from two-month highs.
Spot Brent crude oil lost 0.30% to $72.91 per barrel. US West Texas Intermediate crude fell 0.10% to $72.94 a barrel.
The yellow metal lower 0.15% to 1780.50 dollars per ounce.
Market Wrap: Forex
The dollar paused for breath on Tuesday as traders looked to testimony from Federal Reserve Chair Jerome Powell for further guidance on the central bank’s recent surprise shift in its policy outlook, while support crept back for cryptocurrencies.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.12% to 91.965.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell today. This left the pairing trading around $1.19080.
The Japanese yen fell against the U.S. dollar on Tuesday as the stock pushes higher. Today US/JPY up 0.13% to 110.430 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.30% to 0.75120, and NZD/USD fell 0.05% to 0.69800.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18822
Preferable Price Action: Take long positions above pivot level with targets at 1.19544 & 1.19874 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18251 & 1.17968.
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: Trend on the downside
Our pivot point is at 1.39240
Preferable Price Action: Sell positions below pivot with targets at 1.38470 & 1.38090in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.40115 & 1.40507.
Comment: Price 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
USD/JPY Intraday: Support at 110.259
Our pivot point is at 110.259
Preferable Price Action: Buy position above pivot with the target at 110.650 and 110.822 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.921 and 109.755.
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 0.75409
Preferable Price Action: Sell Positions below pivot with targets at 0.74841 & 0.74333 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76132 & 0.76561 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: Break resistance zone
Our pivot point is at 72.56
Preferable Price Action: Above pivots buy Oil with 74.00 & 74.97 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.04 and 69.96 in extension.
Comment: Crude is above its 55MA 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: Trend may change to the upside
Our pivot point is 1775.25
Preferable Price Action: Further upside to 1799.59 & 1813.21.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1753.29 and 1740.18.
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 upside
Our pivot point is 33,812.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,220.00 & 32,538.00.
Alternative Price Action: Below 33,812.00 looks for further downside to 33,406.00 & 33,073.00.
Comment: Price 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