Market Wrap: Stocks, Bonds, Commodities
The S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic sent energy stocks lower but rising U.S. Treasury yields lifted financials stocks, keeping Wall Street’s benchmark index near record levels.
The Dow Jones Industrial Average fell 107.91 points (0.31%) to 35,100.60, the S&P 500 lost 4.11 points (0.09%) to 4,432.41 and the Nasdaq Composite added 24.42 points (0.16%) to 14,860.18.
Asian stocks started off on a weak footing on Tuesday after a largely soft performance on Wall Street and as persistent concerns over the spread of the Delta variant of the coronavirus dented sentiment and triggered falls in metals and oil prices.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.36% to 836.43 levels. Australian index gained 0.32% to 7,562.60. Japanese Nikkei traded 0.24% higher to 27,888.15.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index gained 0.31% to 4,190.10, Germany’s DAX rose 0.21% to 15,778.50, and France’s CAC up 0.16% to 6,817.82, and U.K.’s FTSE 100 flat to 7,134.65.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields flat to 1.317.
Oil prices rose on Tuesday, edging up from a three-week low in the previous session, but gains are likely to be limited on worries that rising COVID-19 cases and restrictions in China will dent fuel demand.
Spot Brent crude oil advance 1.58% to $70.14 per barrel. US West Texas Intermediate crude gained 2.00% to $67.81 a barrel.
The yellow metal traded 0.53% higher to 1735.65 dollars per ounce.
Market Wrap: Forex
The dollar was buoyant on Tuesday, pushing the euro to a four-month low, as a run of strong U.S. job figures solidified expectations the U.S. Federal Reserve could soon start tapering its massive coronavirus-driven stimulus.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 92.808.
The Euro US Dollar (EUR/USD) is a widely traded pair that lost 0.05% today. This left the pairing trading around $1.17570
The Japanese yen rose against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY lost 0.07% to 110.170 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD flat to 0.73520, and NZD/USD advanced 0.10% to 0.70120.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.17600
Preferable Price Action: Take short positions below pivot level with targets at 1.17010 & 1.16680 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18210 & 1.18550.
Comment: Pair 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
GBP/USD Intraday: Break support level
Our pivot point is at 1.38460
Preferable Price Action: Buy positions above pivot with targets at 1.38920 & 1.39250 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38010 & 1.37670.
Comment: Price above its 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
USD/JPY Intraday: Trend on the upside
Our pivot point is at 109.660
Preferable Price Action: Buy position above pivot with the target at 110.760 and 110.070 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.660 and 109.310.
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: Resistance at 0.73550
Our pivot point is at 0.73550
Preferable Price Action: Sell Positions below pivot with targets at 0.73200 & 0.73010 in extension.
Alternative Price Action: above pivot looks for a further upside with 0.73920 & 0.74080 as targets.
Comment: Pair below 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
CRUDEOIL Intraday: Trend may reverse to upside
Our pivot point is at 66.89
Preferable Price Action: Above pivots buy Oil with 68.33 & 69.04 as targets.
Alternative Price Action: Sell crude below pivot with targets at 65.55 and 64.82 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: Trend may reverse to upside
Our pivot point is 1727.20
Preferable Price Action: Further upside to 1762.00 & 1781.30.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1693.50 and 1675.10.
Comment: MACD in negative territory and price above it’s 20MA.
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: Support at 35,034.00
Our pivot point is 35,034.00
Preferable Price Action: Take long positions above pivot with targets at 35,186.00 & 35,252.00.
Alternative Price Action: below 35,032.00 looks for further downside to 34,891.00 & 34,824.00.
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