Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Dow fell on Tuesday, pausing after recent strong gains as focus shifted to the Federal Reserve, while the Nasdaq ended at an all-time high for a second straight day after briefly rising above the 10,000 marks for the first time.
The Dow Jones Industrial Average fell 300.14 points (1.09%) to 27,272.3, the S&P 500 lost 25.21 points (0.78%) to 3,207.18 and the Nasdaq Composite added 29.01 points (0.29%) to 9,953.75.
Asian equities slipped on Wednesday after most US stocks pared gains made during their recent rally, although the Nasdaq benchmark reached its second straight day at a record high as oil prices rose.
MSCI’s index of Asia-Pacific stocks outside Japan surged 0.47% to 653.50 levels. Australian index gained 0.10% to 6,148.40. Japan’s Nikkei rose 0.15% to 22,124.95.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 0.86% to 3,350.30, Germany’s DAX gained 0.98% to 12,748.50 and France’s CAC climbed 0.97% to 5,144.45 and U.K.’s FTSE 100 advanced 0.60% to 6,369.80.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield lost 2.23% to 0.811.
Oil prices fell on Wednesday as an industry report showed a rise in crude and fuel inventories in the United States, renewing concerns about oversupply and slumping fuel demand in the world’s largest crude consumer.
Spot Brent crude Oil fell 1.36% to $40.63 per barrel. US West Texas Intermediate crude down 1.80% to $38.24 a barrel.
Market Wrap: Forex
The dollar was up on Wednesday morning in Asia on the back of eagerly-awaited details from U.S. Federal Reserve policy meeting scheduled for later in the day.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.10% to 96.227.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.15% today. This left the pairing trading around $1.13500. The pound traded 0.27% higher to 1.27640.
The Japanese yen rose against the U.S. dollar on Wednesday as demand for safe currency rose. Today US/JPY down 0.30% to 107.420.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.33% to 0.69850 and NZD/USD fell 0.48% to 0.65430.
EUR/USD Intraday: Support at 1.13330
Our pivot point is at 1.13330
Preferable Price Action: Take Long positions above pivot level with targets at 1.13782 & 1.13976 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12865 & 1.12663.
Comment: Pair 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
GBP/USD Intraday: Break resistance level
Our pivot point is at 1.27360
Preferable Price Action: Long positions above pivot with targets at 1.27903 & 1.28202 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.26841 & 1.26526.
Comment: Price above 20MA & 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 produced
JPY/USD Intraday: strong trend downside
Our pivot point is at 107.600
Preferable Price Action: Short position below pivot with the target at 107.109 and 106.805 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.095 and 108.405.
Comment: Pair below 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
AUD/USD Intraday: Support at 0.69600
Our pivot point is at 0.69600
Preferable Price Action: Long positions above pivot with targets at 0.70054 & 0.70301 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.69131 & 0.68887 as targets.
Comment: MACD in the positive zone 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
CRUDEOIL Intraday: Trend pause temporary
Our pivot point is at 37.90
Preferable Price Action: Buy crude above pivot with targets at 39.00 and 39.60 in extension.
Alternative Price Action: Below pivots sell Oil with 36.77 & 36.16 as targets.
Comment: MACD in the positive zone and price at 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1711.00
Preferable Price Action: Further upside to 1724.09 & 1730.33 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1697.90 and 1691.64.
Comment: RSI above 50 level mark 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
Dow Jones Intraday: Trend may reverse from here
Our pivot point is at 27600.00
Preferable Price Action: Take sell positions below pivot with targets at 27216.31 & 26990.85 in extension.
Alternative Price Action: Above 27600.00 looks for further upside to 27966.74 & 28161.91.
Comment: Price above 20MA and 55MA and MACD in 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 produced7