Market Wrap: Stocks, Bonds, Commodities
The S&P 500 surged on Thursday to its first-ever close above the 4,000 mark, lifted by gains in Microsoft, Amazon and Alphabet, as well as optimism about a recovering U.S. economy.
The Dow Jones Industrial Average rose 0.52% to end at 33,153.21 points, while the S&P 500 gained 1.18% to 4,019.87. The Nasdaq Composite climbed 1.76% to 13,480.11.
Global stock prices rose to a one an half month high on Monday after data showing a surge in U.S. employment while short-dated U.S. bonds came under pressure on worries the Federal Reserve may bump up interest rates sooner than it has indicated.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 879.20 levels. Australian index closes today. Japanese Nikkei traded 0.79% higher to 30,089.25.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield flat to 1.718.
Oil prices slipped on Monday, paring strong gains made in the previous session that was driven by the decision by OPEC+ to gradually ease some of its production cuts between May and July.
Spot Brent crude Oil fell 1.90% to $63.63 per barrel. US West Texas Intermediate crude plunge 1.81% to $60.34 a barrel.
The yellow metal traded down 0.17% to 1725.11 dollar per ounce.
Market Wrap: Forex
The dollar was largely steady on Monday as investors soaked up last week’s strong U.S. employment report and looked ahead to data on the U.S. services sector for affirmation of a solid economic rebound from the coronavirus shock.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.05% to 93.085.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.17% today. This left the pairing trading around $1.17410.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes lower. Today US/JPY fell 0.10% to 110.610 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.20% to 0.76200 and NZD/USD advance 0.16% to 0.70380.
EUR/USD Intraday: Resistance at 1.17710
Our pivot point is at 1.17710
Preferable Price Action: Take short positions below pivot level with targets at 1.17350 & 1.17200 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.18070 & 1.18220.
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: Support at 1.38110
Our pivot point is at 1.38110
Preferable Price Action: Buy positions above pivot with targets at 1.38530 & 1.38750 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37670 & 1.37450.
Comment: Price above at 20MA & 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: In consolidation zone
Our pivot point is at 111.500
Preferable Price Action: Buy position above with the target at 110.790 and 110.930 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.220 and 110.070.
Comment: price above 20MA & 50MA 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: Trend on the downside
Our pivot point is at 0.76250
Preferable Price Action: Sell Positions below pivot with targets at 0.75850 & 0.75650 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76650 & 0.76850 as targets.
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
CRUDEOIL Intraday: In the consolidation zone
Our pivot point is at 60.25
Preferable Price Action: Above pivots buy Oil with 61.10 & 61.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.40 and 58.80 in extension.
Comment: Crude above its 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
XAU/USD Intraday: Trend on the upside
Our pivot point is at 1720.80
Preferable Price Action: Further upside to 1734.00 & 1740.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1707.00 and 1701.00.
Comment: MACD in positive territory and price above 20MA & 55MA.
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 33,230.00
Our pivot point is 33,230.00
Preferable Price Action: Take buy positions above pivot with targets at 33,400.00 & 33,500.00.
Alternative Price Action: Below 33,230.00 looks for further downside to 33,050.00 & 32,950.00.
Comment: Price above its 20MA and 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 produced7