Market Wrap: Stocks, Bonds, Commodities
Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple, and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.
The Dow Jones Industrial Average fell 0.86% to end at 34,687.85 points, while the S&P 500 lost 0.75% to 4,327.16. The Nasdaq Composite dropped 0.8% to 14,427.24.
Asian shares slipped again on Monday while perceived safe-haven assets, including the yen and gold, edged higher as investor risk appetite was soured by fears of rising inflation and a relentless surge in coronavirus cases.
MSCI’s index of Asia-Pacific stocks outside Japan decline 1.30% to 856.71 levels. Australian index slipped 0.85% to 7,285.50. Japanese Nikkei traded lower 1.25% to 27,652.70.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 2.21% to 3,946.70, Germany’s DAX down 2.19% to 15,203.40, and France’s CAC lost 2.16% to 6,320.50, and U.K.’s FTSE 100 slipped 1.96% to 6,870.95.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields lost 0.93% to 1.287.
Oil prices slipped after OPEC+ agreed to boost production into 2022, resolving an internal dispute after UAE and Saudi Arabia reach a compromise deal.
Spot Brent crude oil fell 0.95% to $72.88 per barrel. US West Texas Intermediate crude lost 1.10% to $70.80 a barrel.
The yellow metal is lower 0.52% to 1805.70 dollars per ounce.
Market Wrap: Forex
The dollar sat near its highest levels in months on Monday as the spread of the Delta coronavirus variant made investors nervous about the global recovery and sent money into safety.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, rose 0.10% to 92.752.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.18000.
The Japanese yen rose against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY declined 0.11% to 109.950 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.20% to 0.74390, and NZD/USD slipped 0.21% to 0.69910.
EUR/USD Intraday: Resistance at 1.18200
Our pivot point is at 1.18200
Preferable Price Action: Take short positions below pivot level with targets at 1.17880 & 1.17690 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18480 & 1.18650.
Comment: Pair 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
GBP/USD Intraday: Trend on the downside
Our pivot point is at 1.37930
Preferable Price Action: Sell positions below pivot with targets at 1.37280 & 1.36950 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.38490 & 1.38870.
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
USD/JPY Intraday: Support at 109.860
Our pivot point is at 109.860
Preferable Price Action: Buy position above pivot with the target at 110.220 and 110.480 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.520 and 109.290.
Comment: price above its 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: Trend on the downside
Our pivot point is at 0.74090
Preferable Price Action: Sell Positions below pivot with targets at 0.73620 & 0.73350 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.73620 & 0.73350 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: Resistance at 719.91
Our pivot point is at 71.91
Preferable Price Action: Below pivots sell Oil with 69.77 & 68.91 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: Break suport level
Our pivot point is 1812.60
Preferable Price Action: Further downside to 1800.50 & 1793.80.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1824.70 and 1831.20.
Comment: MACD in negative territory and price below 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: Trend on the downside
Our pivot point is 34,691.00
Preferable Price Action: Take sell positions pivot with targets at 34,407.00 & 34,250.00.
Alternative Price Action: Below 34,691.00 looks for further downside to 34,973.00 & 35,125.00.
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