Market Wrap: Stocks, Bonds, Commodities
US stock indexes fell on Thursday as a rally in growth stocks ran out of steam, while economically-sensitive cyclical gained as a fall in weekly jobless claims last week strengthened views about a recovery in the labor market.
The Dow Jones Industrial Average was up 7.35 points at 34,940.58 and the S&P 500 was down 14.09 points (0.32%) at 4,360.21. The Nasdaq Composite dropped 102.25 points (0.70%) at 14,542.70.
Asian stock indices lower on Friday as profit-taking in Taiwanese chip giant TSMC, despite record quarterly profits, weighed on other tech firms, while a more dovish U.S. rates outlook kept bond yields near multi-month lows.
MSCI’s index of Asia-Pacific stocks outside Japan decline 0.38% to 870.10 levels. Australian index rose 0.17% to 7,348.10. Japanese Nikkei traded lower 0.98% to 28,003.10.
European stocks were higher on Friday, with the Stoxx Europe 50 Index gained 0.38% to 4,070.90, Germany’s DAX rose 0.29% to 15,975.90, and France’s CAC up 0.53% to 6,518.25, and U.K.’s FTSE 100 advance 0.55% to 7,048.75.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields rose 1.67% to 1.319.
Oil headed for the biggest weekly decline since mid-March as a resurgence of Covid-19 in some parts of the world and uncertainty around the prospect for an OPEC+ deal to boost supply clouded the short-term outlook.
Spot Brent crude oil fell 0.30% to $73.25 per barrel. US West Texas Intermediate crude lost 0.29% to $71.44 a barrel.
The yellow metal lower 0.22% to 1824.95 dollars per ounce.
Market Wrap: Forex
The dollar was headed for its best weekly gain in about a month on Friday, supported by investors’ drift toward safety as rising COVID-19 infections loomed over the pandemic recovery, while a hot inflation reading sharply lifted the New Zealand dollar.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, lost 0.06% to 92.573.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.18120.
The Japanese yen fell against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY jumped 0.25% to 110.090 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.18% to 0.74390, and NZD/USD up 0.64% to 0.70260.
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