Market Wrap: Stocks, Bonds, Commodities
U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve’s message earlier this week that it is in no hurry to taper stimulus pinned the dollar at a one-month low.
The volley of positive news boosted the Dow Jones Industrial Average to a record high of 35,171.52 points after closing up 0.44%. The S&P 500 also jumped 0.42% to an all-time high of 4,419.97 points, while the Nasdaq Composite added 0.11% to 14,778.30.
Asian shares slipped on Friday, with a gauge of regional equities set for its biggest monthly drop since the height of global pandemic lockdowns last March, while the dollar lagged near one-month lows on expectations of continued Fed stimulus.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.31% to 819.11 levels. Australian index fell 0.33% to 7,392.60. Japanese Nikkei plunged 1.80% to 27,283.59.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gained 0.27% to 4,114.16, Germany’s DAX rose 0.10% to 15,584.50, and France’s CAC up 0.72% to 6,656.23, and U.K.’s FTSE 100 up 0.51% to 7,052.55.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields fell 2.10% to 1.242.
Oil was poised for a second weekly gain as investors bet the demand recovery will remain intact despite the latest Covid-19 comeback.
Spot Brent crude oil slipped 0.65% to $74.59 per barrel. US West Texas Intermediate crude lost 0.58% to $73.19 a barrel.
The yellow metal is lower 0.25% to 1826.70 dollars per ounce.
Market Wrap: Forex
The dollar fell to a one-month low on Thursday, a day after the U.S. Federal Reserve said the job market still had “some ground to cover” before it would be time to ease monetary stimulus, taking the steam out of a monthlong rally by the greenback.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, gained 0.10% to 91.948.
The Euro US Dollar (EUR/USD) is a widely traded pair that flat today. This left the pairing trading around $1.18840.
The Japanese yen lost against the U.S. dollar on Friday as the stock pushes lower. Today US/JPY rose 0.15% to 109.600 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD down 0.18% to 0.73800, and NZD/USD fell 0.11% to 0.70000.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18620
Preferable Price Action: Take long positions above pivot level with targets at 1.19100 & 1.19380 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18110 & 1.17830.
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: Trend on the upside
Our pivot point is at 1.39170
Preferable Price Action: Buy positions above pivot with targets at 1.39970 & 1.40450 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38340 & 1.37820.
Comment: Price 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
USD/JPY Intraday: Trend on the downside
Our pivot point is at 109.820
Preferable Price Action: Sell position below pivot with the target at 109.350 and 109.120 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.290 and 110.530.
Comment: price below its 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: In a consolidation zone
Our pivot point is at 0.73990
Preferable Price Action: Sell Positions below pivot with targets at 0.73630 & 0.73460 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.74350 & 0.74510 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: Break resistance level
Our pivot point is at 72.24
Preferable Price Action: Above pivots buy Oil with 73.42 & 74.02 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.01 and 70.33 in extension.
Comment: Crude is above its 55MA 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: Strong Trend on the upside
Our pivot point is 1822.80
Preferable Price Action: Further upside to 1835.00 & 1841.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1810.40 and 1803.10.
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: In a consolidation zone
Our pivot point is 35,018.00
Preferable Price Action: Take short positions below pivot with targets at 34,846.00 & 34,759.00.
Alternative Price Action: Above 35,018.00 looks for further upside to 35,173.00 & 35,258.00.
Comment: Price 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