Market Wrap: Stocks, Bonds, Commodities
U.S. Treasuries prices maintained gains on Wednesday, holding down yields, and two stock indexes notched record highs after minutes from the Federal Reserve’s latest meeting largely confirmed market expectations. The dollar remained firm.
The Dow Jones Industrial Average rose 104.42 points (0.30%) to 34,681.79. The broad S&P 500 gained 14.59 points (0.34%) to 4,358.13. The Nasdaq Composite is flat to 14,665.06.
Asia Pacific stocks were mostly down Thursday morning. U.S. shares and Treasuries gained after the U.S. Federal Reserve said in its latest policy meeting minutes that more evidence of a robust economic recovery from COVID-19 would be needed to set an asset tapering timeline.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.50% to 854.99 levels. Australian index advance 0.23% to 7,343.90. Japanese Nikkei traded lower 0.81% to 28,137.00.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index up 0.59% to 4,076.56, Germany’s DAX gained 0.86% to 15,641.60, and France’s CAC rose 0.37% to 6,531.41, and U.K.’s FTSE 100 advance 0.50% to 7,136.35.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields slumped 1.25% to 1.305.
Oil was down Thursday morning in Asia, falling for a third consecutive session. Investors continue to keep an eye on the ongoing production dispute between Saudi Arabia and the United Arab Emirates (UAE) impacting global fuel supply.
Spot Brent crude oil slipped 0.27% to $73.23 per barrel. US West Texas Intermediate crude lost 0.39% to $71.93 a barrel.
The yellow metal lower 0.22% to 1798.10 dollars per ounce.
Market Wrap: Forex
The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserve’s June policy meeting confirmed the world’s biggest central bank is moving toward tapering its asset purchases as soon as this year.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 92.662.
The Euro US Dollar (EUR/USD) is a widely traded pair advance today. This left the pairing trading around $1.18020.
The Japanese yen gained against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY gained 0.10% to 110.670 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.51% to 0.74420, and NZD/USD slipped 0.63% to 0.69730.
EUR/USD Intraday: Resistance at 1.18270
Our pivot point is at 1.18270
Preferable Price Action: Take short positions below pivot level with targets at 1.17790 & 1.17560 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18700 & 1.18950.
Comment: Pair below its 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: Trend on the downside
Our pivot point is at 1.37990
Preferable Price Action: Sell positions below pivot with targets at 1.37540 & 1.37330 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.38420 & 1.38670.
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: Break support level
Our pivot point is at 110.400
Preferable Price Action: Sell position below pivot with the target at 110.050 and 109.880 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.740 and 110.920.
Comment: price below its 20MA & 55MA and MACD in 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
AUD/USD Intraday: Break support level
Our pivot point is at 0.74710
Preferable Price Action: Sell Positions below pivot with targets at 0.74090 & 0.73760 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.75340 & 0.75680 as targets.
Comment: Pair below its 20MA & 55MA 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
CRUDEOIL Intraday: Resistance at 72.43 level
Our pivot point is at 72.43
Preferable Price Action: Below pivots sell Oil with 69.95 & 68.80 as targets.
Alternative Price Action: Buy crude above pivot with targets at 74.74 and 75.93 in extension.
Comment: Crude is below its 20MA & 55MA 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: Support at 1792.10
Our pivot point is 1792.10
Preferable Price Action: Further upside to 1806.50 & 1814.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1778.80 and 1771.20.
Comment: MACD in negative territory and price below its 20MA & 50MA.
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 34,546.00
Preferable Price Action: Take Sell positions below pivot with targets at 34,300.00 & 34,204.00.
Alternative Price Action: Above 34,546.00 looks for further upside to 34,785.00 & 34,896.00.
Comment: Price above its 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