Market Wrap: Stocks, Bonds, Commodities
All three major US stock indexes eked out record closing highs for a second straight session on Monday as investors were optimistic heading into a slew of earnings from heavyweight technology and internet names this week, while caution ahead of a Federal Reserve policy meeting kept the market in check.
The Dow Jones Industrial Average rose 82.76 points (0.24%) to 35,144.31, the S&P 500 gained 10.51 points (0.24%) to 4,422.3 and the Nasdaq Composite almost flat to 14,840.71.
Shares in Asia-Pacific edged higher in Tuesday morning trade as several major Chinese tech stocks in Hong Kong remained under pressure following a Monday tumble.
MSCI’s index of Asia-Pacific stocks outside Japan decline 1.44% to 811.76 levels. Australian index advance to 7,394.30. Japanese Nikkei traded higher 1.04% to 27,833.30.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 0.70% to 4,080.99, Germany’s DAX down 0.64% to 15,568.30, and France’s CAC lost 0.62% to 6,528.20, and U.K.’s FTSE 100 slipped 0.45% to 6,996.25.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields plunged 3.67% to 1.128.
Oil resumed gains as investors bet the global demand recovery will remain intact despite a resurgence in Covid-19 leading to tighter restrictions on movement in many regions.
Spot Brent crude oil fell 1.31% to $72.53 per barrel. US West Texas Intermediate crude lost 1.44% to $71.05 a barrel.
The yellow metal is higher 0.36% to 1808.35 dollars per ounce.
Market Wrap: Forex
The U.S. dollar hovered below recent peaks on Tuesday, as investors turned to this week’s Federal Reserve meeting for clues on the policy outlook, while cryptocurrencies pulled back sharply from an attempt to break out of a month-long range.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, fell 0.15% to 92.810.
The Euro US Dollar (EUR/USD) is a widely traded pair that advance 0.10% today. This left the pairing trading around $1.17800.
The Japanese yen lost against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY slipped 0.27% to 110.230 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.27% to 0.73430, and NZD/USD slipped 0.15% to 0.69590.
EUR/USD Intraday: In a consolidation zone
Our pivot point is at 1.18080
Preferable Price Action: Take short positions below pivot level with targets at 1.17870 & 1.17780 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18290 & 1.18380.
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: Break consolidation zone
Our pivot point is at 1.37950
Preferable Price Action: Buy positions above pivot with targets at 1.38630 & 1.39000 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37210 & 1.36810.
Comment: Price below its 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: In a consolidation zone
Our pivot point is at 110.320
Preferable Price Action: Sell position below pivot with the target at 110.000 and 109.830 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.640 and 110.790.
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: Major resistance at 0.73870
Our pivot point is at 0.73870
Preferable Price Action: Sell Positions below pivot with targets at 0.73440 & 0.73210 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.74300 & 0.74520 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: Support at 71.36
Our pivot point is at 71.36
Preferable Price Action: Above pivots buy Oil with 73.43 & 74.61 as targets.
Alternative Price Action: Sell crude below pivot with targets at 69.17 and 68.02 in extension.
Comment: Crude is above its 55MA & 20MA 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: Resistance at 1799.80
Our pivot point is 1799.80
Preferable Price Action: Further downside to 1791.20 & 1786.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1808.50 and 1813.90.
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 upside
Our pivot point is 35,004.00
Preferable Price Action: Take long positions above pivot with targets at 35,233.00 & 35,365.00.
Alternative Price Action: Below 35,004.00 looks for further downside to 34,757.00 & 34,622.00.
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