Market Wrap: Stocks, Bonds, Commodities
The S&P 500 slipped on Tuesday but stayed near closing record highs posted in consecutive sessions, as investors weighed more strong U.S. economic data against nervousness about upcoming quarterly earnings reports.
The Dow Jones Industrial Average fell 96.95 points (0.29%) to 33,430.24, the S&P 500 lost 3.97 points (0.10%) to 4,073.94 and the Nasdaq Composite dropped 7.21 points (0.05%) to 13,698.38.
Asia equities are set for a sluggish open on Wednesday after Wall Street pulled back from record highs reached in previous sessions, as investors eye the upcoming earnings season for more signs of recovery following a series of strong U.S. economic data.
Asian equities are poised to rise on Tuesday after the S&P 500 and Dow indexes set records as a streak of strong U.S. economic data fueled optimism even as a smaller-than-expected climb in 10-year Treasury notes eased inflation concerns.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.31% to 881.75 levels. Australian index advances 0.61% to 6,928.00. Japanese Nikkei traded 0.12% higher to 29,730.80.
European stocks were advance on Wednesday, with the Stoxx Europe 50 Index flat to 3,964.05, Germany’s DAX rose 0.05% to 15,217.60 and France’s CAC higher 0.18% to 6,142.71 and U.K.’s FTSE 100 advance 0.71% to 6,875.70.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.63% to 1.464.
Oil prices edged higher on Wednesday on the prospects for stronger global economic growth amid increased COVID-19 vaccinations and a report that crude inventories in the United States, the world’s biggest fuel consumer, fell.
Spot Brent crude oil lost 0.78% to $62.25 per barrel. US West Texas Intermediate crude slipped 0.88% to $58.83 a barrel.
The yellow metal traded fell 0.32% to 1736.20 dollars per ounce.
Market Wrap: Forex
The dollar softened to a two-week low against a basket of currencies on Wednesday after U.S. bond yields declined as traders rolled back aggressive expectations that the Federal Reserve will tighten its policy earlier than pledged.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 92.305.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.06% today. This left the pairing trading around $1.18820.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.12% to 109.870 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.45% to 0.76270 and NZD/USD lost 0.30% to 0.70350.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18600
Preferable Price Action: Take long positions above pivot level with targets at 1.18930 & 1.19150 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.18260 & 1.18040.
Comment: Pair above its 20MA & 55MA an RSI near 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: Bias on the downside
Our pivot point is at 1.38190
Preferable Price Action: Sell positions below pivot with targets at 1.37650 & 1.37400 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.38730 & 1.38980.
Comment: Price below at 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
USD/JPY Intraday: Bias on the downside
Our pivot point is at 110.000
Preferable Price Action: Sell position below with the target at 109.680 and 109.500 in extension.
Alternative Price Action: The upside breakout of pivot would call for 110.320 and 110.500.
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 0.76600
Preferable Price Action: Sell Positions below pivot with targets at 0.76200 & 0.76000 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77000 & 0.77200 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 58.90
Preferable Price Action: Above pivots buy Oil with 60.10 & 60.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 57.70 and 57.10 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: Bias on the upside
Our pivot point is at 1732.00
Preferable Price Action: Further upside to 1746.20 & 1752.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1717.60 and 1711.70.
Comment: MACD in positive territory and price below 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: Trend on the upside
Our pivot point is 33,370.00
Preferable Price Action: Take buy positions above pivot with targets at 33,530.00 & 33,610.00.
Alternative Price Action: Below 33,390.00 looks for further downside to 33.240.00 & 33,160.00.
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 produced7