Market Wrap: Stocks, Bonds, Commodities
Global stocks prices closed flat and bond yields edged lower on Wednesday after U.S. Federal Reserve Chair Jerome Powell soothed investor angst by saying a recent inflation spike will fade, helping lift the S&P 500 to a fresh intraday record.
The Dow Jones Industrial Average rose 44 points (0.13%) to 34,933.23, the S&P 500 added 0.12% to 4,374.38 and the Nasdaq Composite slipped 32 points (0.22%) to 14,645.00.
Asian shares held firm on Thursday after Federal Reserve Chair Jerome Powell said the U.S. economy was “still a ways off” from levels the central bank wanted to see before tapering its monetary support.
MSCI’s index of Asia-Pacific stocks outside Japan advance 1.05% to 873.57 levels. Australian index lost 0.26% to 7,335.90. Japanese Nikkei traded lower 1.15% to 28,289.10.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index lost 0.43% to 4,082.30, Germany’s DAX fell 0.33% to 15,738.50, and France’s CAC down 0.33% to 6,536.64, and U.K.’s FTSE 100 slipped 0.14% to 7,080.95.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields plunged 2.12% to 1.327.
Oil prices dropped on Wednesday after sources told Reuters Saudi Arabia and the United Arab Emirates had reached a compromise that should unlock an OPEC+ deal to boost global oil supplies as the world recovers from the coronavirus pandemic.
Spot Brent crude oil fell 1.15% to $73.90 per barrel. US West Texas Intermediate crude lost 1.35% to $72.14 a barrel.
The yellow metal higher 0.38% to 1832.10 dollars per ounce.
Market Wrap: Forex
The dollar pared recent gains on Wednesday after Federal Reserve Chair Jerome Powell told Congress the U.S. economy was “still a ways off” from levels the central bank wanted to see before tapering its monetary support.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, lost 0.05% to 92.282.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.18330.
The Japanese yen rose against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY lost 0.13% to 110.840 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.05% to 0.74750, and NZD/USD lost 0.16% to 0.70200.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18200
Preferable Price Action: Take long positions above pivot level with targets at 1.18579 & 1.18801 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.17826 & 1.17612.
Comment: Pair 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
GBP/USD Intraday: Support at 1.38244
Our pivot point is at 1.38244
Preferable Price Action: Buy positions above pivot with targets at 1.38292 & 1.38095 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37762 & 1.37506.
Comment: Price above 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
USD/JPY Intraday: Resistance at 110.049
Our pivot point is at 110.049
Preferable Price Action: Buy position above pivot with the target at 110.445 and 110.706 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.632 and 109.381.
Comment: price below its 55MA & 20MA 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: In a consolidation area
Our pivot point is at 0.74637
Preferable Price Action: Buy Positions above pivot with targets at 0.74970 & 0.75163 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.74277 & 0.74084 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 downside
Our pivot point is at 72.53
Preferable Price Action: Below pivots sell Oil with 70.65 & 69.47 as targets.
Alternative Price Action: Buy crude above pivot with targets at 74.33 and 75.44 in extension.
Comment: Crude is below 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: Trend on the upside
Our pivot point is 1823.00
Preferable Price Action: Further upside to 1837.52 & 1845.66.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1807.84 and 1797.62.
Comment: MACD in positive territory and price above it’s 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: Index traded in a range
Our pivot point is 34,755.00
Preferable Price Action: Take buy positions pivot with targets at 35,050.00 & 35,210.00.
Alternative Price Action: Below 34,755.00 looks for further downside to 34,487.00 & 34,323.00.
Comment: Price below its 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