Market Wrap: Stocks, Bonds, Commodities
Wall Street’s major indexes closed lower on Friday, with the Nasdaq leading the declines as investors bet that a strong jobs report would not slow the Federal Reserve’s withdrawal of support while they grappled with uncertainty around the Omicron coronavirus variant.
The Dow Jones Industrial Average fell 59.71 points (0.17%) to 34,580.08, the S&P 500 lost 38.67 points (0.84%) to 4,538.43 and the Nasdaq Composite dropped 295.85 points (1.92%) to 15,085.47.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.00% to 779.00 levels. Australian index rose 0.05% to 7,245.10. Japanese Nikkei Index lost 0.36% to 27,927.37.
European stocks were higher on Monday, with the Stoxx Europe 50 Index jumping 0.75% to 4,111.05, Germany’s DAX rose 0.92% to 15,308.50, and France’s CAC advance 0.80% to 6,819.77, and U.K.’s FTSE 100 rose 0.95% to 7,189.30.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields advance 3.42% to 1.387.
Oil prices rose by more than $1 a barrel on Monday after top exporter Saudi Arabia raised prices for its crude sold to Asia and the United States, and as indirect U.S.-Iran talks on reviving a nuclear deal appeared to hit an impasse.
Spot Brent crude oil gained 2.23% to $71.43 per barrel. US West Texas Intermediate crude rose 2.41% to $67.86 a barrel.
The yellow metal gold is higher flat to 1784.25 dollars per ounce.
Market Wrap: Forex
The dollar was up on Monday, with uncertainty surrounding the omicron COVID-19 variant and expectations of more hot U.S. inflation data increasing the pressure on interest rates.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which advanced 0.25% to 96.355.
The Euro US Dollar (EUR/USD) is a widely traded pair that is slipped 0.29% today. This left the pairing trading around $1.12800.
The Japanese yen fell against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY is rose 0.25% to 113.080 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD rose 0.14% to 0.70100, and NZD/USD gained 0.06% to 0.67430 level.
EUR/USD Intraday: Resistance at 1.13060
Our pivot point is at 1.13060
Preferable Price Action: Take Short positions Below pivot level with targets at 1.12660 & 1.12490 in extension.
Alternative Price Action: Above pivot looks for a further Upside to 1.13490 & 1.13660.
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
GBP/USD Intraday: Resistance at 1.32530
Our pivot point is at 1.32530
Preferable Price Action: Sell positions below pivot with targets at 1.31860 & 1.31560 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.33290 & 1.33630.
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
USD/JPY Intraday: In a consolidation zone
Our pivot point is at 112.900
Preferable Price Action: Buy position Above pivot with the target at 113.430 and 113.700 in extension.
Alternative Price Action: The Downside breakout of the pivot would call for 112.360 and 112.100.
Comment: Price above its 55MA & 20MA 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 0.70530
Preferable Price Action: Sell Positions below pivot with targets at 0.69860 & 0.69600 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.71260 & 0.71630 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 65.60
Preferable Price Action: Above pivots Buy Oil with 70.30 & 72.60 as targets.
Alternative Price Action: Sell crude Below pivot with targets at 61.60 and 59.60 in extension.
Comment: Crude is above its 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: Support at 1775.20
Our pivot point is 1775.20
Preferable Price Action: Further upside to 1798.60 and 1809.00.
Alternative Price Action: If the price gives an downside breakout of a pivot, then the price extends to 1752.60 and 1740.60.
Comment: MACD in positive territory and price above its 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: Trend on the upside
Our pivot point is 34,560.00
Preferable Price Action: Take Long positions above pivot with targets at 35,100.00 & 35,360.00.
Alternative Price Action: Below 34,560.00 looks for further Downside to 34,030.00 & 33,830.00.
Comment: Price above its 55MA & 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