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.
Asian shares stayed stuck at seven-month lows on Wednesday, as markets continued to digest a storm in Chinese equity markets, while currency markets were quiet with traders wary of placing large bets prior to the outcome of a Federal Reserve meeting.
MSCI’s index of Asia-Pacific stocks outside Japan decline 0.05% to 802.00 levels. Australian index lost 0.70% to 7,394.30. Japanese Nikkei traded lower 1.40% to 27,580.00.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 0.05% 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 gained 0.83% to 1.144.
Oil prices held steady on Tuesday ahead of the release of U.S. inventory data as investors worried that global demand could be dented by surging COVID-19 cases, even though supplies are tightening and vaccination rates rising.
Spot Brent crude oil rose 0.57% to $73.94 per barrel. US West Texas Intermediate crude higher 0.66% to $72.12 a barrel.
The yellow metal is higher 0.27% to 1804.50 dollars per ounce.
Market Wrap: Forex
The dollar was up, but remained below its recent highs, on Wednesday morning in Asia. Ripple effects from a crackdown in China and caution ahead of the U.S. Federal Reserve’s latest policy decision gave the safe-haven U.S. currency a boost, however.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, up 0.11% to 92.535.
The Euro US Dollar (EUR/USD) is a widely traded pair that slipped 0.05% today. This left the pairing trading around $1.18090.
The Japanese yen lost against the U.S. dollar on Wednesday as the stock pushes lower. Today US/JPY higher 0.10% to 109.860 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD flat to 0.73590, and NZD/USD rose 0.12% to 0.69620.
EUR/USD Intraday: Trend may reverse to the downside
Our pivot point is at 1.18240
Preferable Price Action: Take short positions below pivot level with targets at 1.17940 & 1.17770 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: Trend on the upside
Our pivot point is at 1.38500
Preferable Price Action: Buy positions above pivot with targets at 1.39160 & 1.39530 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37780 & 1.37410.
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
USD/JPY Intraday: Trend may reverse to upside
Our pivot point is at 109.680
Preferable Price Action: Buy position above pivot with the target at 110.110 and 110.320 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.270 and 109.050.
Comment: price above its 20MA & 55MA and MACD in 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
AUD/USD Intraday: Major resistance at 0.73780
Our pivot point is at 0.73780
Preferable Price Action: Sell Positions below pivot with targets at 0.73320 & 0.73150 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.74260 & 0.74440 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: In a consolidation zone
Our pivot point is at 71.52
Preferable Price Action: Above pivots buy Oil with 72.97 & 73.83 as targets.
Alternative Price Action: Sell crude below pivot with targets at 70.02 and 69.11 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: In a consolidation zone
Our pivot point is 1801.90
Preferable Price Action: Further upside to 1812.40 & 1816.60.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1791.90 and 1787.30.
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: Resistance at 35,065.00
Our pivot point is 35,065.00
Preferable Price Action: Take short positions below pivot with targets at 34,865.00 & 34,734.00.
Alternative Price Action: Above 35,065.00 looks for further upside to 35,288.00 & 35,414.00.
Comment: Price below its 55MA & 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