Market Wrap: Stocks, Bonds, Commodities
The Dow and the S&P 500 indexes closed at record highs on Friday following a stronger-than-expected jobs report, while investors shrugged off concerns over the Delta variant impacting a nascent economic recovery.
The Dow Jones Industrial Average rose 144.26 points (0.41%) to 35,208.51, the S&P 500 gained 7.42 points (0.17%) to 4,436.52 and the Nasdaq Composite fell 59.4 points (0.40%) to 14,835.80.
Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar reached four-month highs on the euro after an upbeat U.S. jobs report lifted bond yields.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.07% to 831.92 levels. Australian index flat to 7,538.40. Japanese Nikkei closed today.
European stocks were mixed on Monday, with the Stoxx Europe 50 Index gained 0.06% to 4,176.10, Germany’s DAX lost 0.10% to 15,745.65, and France’s CAC flat to 6,817.82, and U.K.’s FTSE 100 lost 0.29% to 7,102.55.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields rose 1.34% to 1.305.
Oil prices dropped 2% on Monday, extending last week’s steep losses on the back of a rising U.S. dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand.
Spot Brent crude oil down 2.18% to $69.16 per barrel. US West Texas Intermediate crude fell 2.36% to $66.67 a barrel.
Gold recovered from a flash crash that saw prices drop $60 in minutes on bets the Federal Reserve may soon start paring back its massive monetary stimulus.
The yellow metal traded 0.92% lower to 1746.70 dollars per ounce.
Market Wrap: Forex
The dollar climbed against major peers on Monday, reaching a four-month high versus the euro, as traders positioned for an earlier tapering of Federal Reserve 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 1.17860
Preferable Price Action: Take short positions below pivot level with targets at 1.17320 & 1.17000 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.18410 & 1.18720.
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: In a consolidation zone
Our pivot point is at 1.38750
Preferable Price Action: Buy positions above pivot with targets at 1.39080 & 1.39280 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38420 & 1.38220.
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 109.960
Preferable Price Action: Buy position above pivot with the target at 110.330 and 110.540 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.600 and 109.370.
Comment: price 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
AUD/USD Intraday: Resistance at 0.73700
Our pivot point is at 0.73700
Preferable Price Action: Sell Positions below pivot with targets at 0.73410 & 0.73290 in extension.
Alternative Price Action: above pivot looks for a further upside with 0.73990 & 0.74120 as targets.
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
CRUDEOIL Intraday: Trend on the downside
Our pivot point is at 67.37
Preferable Price Action: Below pivots sell Oil with 65.93 & 65.05 as targets.
Alternative Price Action: Buy crude above pivot with targets at 68.88 and 69.79 in extension.
Comment: Crude is below its 55MA & 20MA and MACD in the 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
XAU/USD Intraday: Trend may reverse to upside
Our pivot point is 1732.50
Preferable Price Action: Further upside to 1764.80 & 1787.70.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1702.50 and 1682.00.
Comment: MACD in negative territory and price below 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: Break resistance area
Our pivot point is 35,032.00
Preferable Price Action: Take long positions above pivot with targets at 35,196.00 & 35,261.00.
Alternative Price Action: below 35,032.00 looks for further downside to 34,878.00 & 34,809.00.
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