Market Wrap: Stocks, Bonds, Commodities
Wall Street stocks ended lower on Wednesday, reversing earlier gains as institutional investors awaited inflation data for clues as to when the U.S. Federal Reserve might tighten its dovish monetary policy.
The Dow Jones Industrial Average fell 152.15 points (0.44%) to 34,447.67, the S&P 500 lost 7.65 points (0.18%) to 4,219.61 and the Nasdaq Composite dropped 13.16 points (0.09%) to 13,911.75.
Asian shares edged higher but held their recent trading range on Thursday as investors focussed on U.S. inflation data and the risk of an upside surprise that could prompt the Federal Reserve to start tapering its massive stimulus.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.57% to 889.13 levels. Australian index rose 0.44% to 7,302.50. Japanese Nikkei traded 0.19% advance 0.34% to 28,958.56.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index fell 0.14% to 4,091.18, Germany’s DAX flat to 15,683.80, and France’s CAC gained 0.10% 6,549.30, and U.K.’s FTSE 100 advance 0.13% to 7,084.77.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields lost 0.56% to 1.481.
Oil prices were steady on Wednesday after U.S. inventory data showed a surge in gasoline inventories due to weak fuel demand following the U.S. Memorial Day weekend, traditionally the beginning of the peak summer driving season.
Spot Brent crude oil lost 0.53% to $71.84 per barrel. US West Texas Intermediate crude down 0.51% to $69.60 a barrel.
The yellow metal traded 0.39% fell to 1885.90 dollars per ounce.
Market Wrap: Forex
The dollar hovered near a five-month low versus major peers on Thursday as investors looked to U.S. inflation data and a European Central Bank meeting later in the day to provide a spur for lackluster currency markets.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 90.058.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.05% today. This left the pairing trading around $1.21720.
The Japanese yen gained against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY lost 0.13% to 109.460 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.17% to 0.77420, and NZD/USD gained 0.15% to 0.71890.
EUR/USD Intraday: Resistance at 1.21810
Our pivot point is at 1.21810
Preferable Price Action: Take short positions below pivot level with targets at 1.21528 & 1.21370 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22105 & 1.22295.
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: Break support level
Our pivot point is at 1.41427
Preferable Price Action: Sell positions below pivot with targets at 1.40941 & 1.40710 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.41898 & 1.42158.
Comment: Price 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
USD/JPY Intraday: In a consolidation zone
Our pivot point is at 109.570
Preferable Price Action: Sell position below pivot with the target at 109.344 and 109.176 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.800 and 109.934.
Comment: price below its 20MA & 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 produced
AUD/USD Intraday: Support at 0.77300
Our pivot point is at 0.77300
Preferable Price Action: Buy Positions above pivot with targets at 0.77600 & 0.77765 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.77004 & 0.76870 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Resistance at 69.85
Our pivot point is at 69.85
Preferable Price Action: Below pivots sell Oil with 68.04 & 68.59 as targets.
Alternative Price Action: Buy crude above pivot with targets at 70.57 and 70.98 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 on the downside
Our pivot point is 1890.69
Preferable Price Action: Further downside to 1878.43 & 1870.39.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1903.65 and 1912.40.
Comment: MACD in negative territory and price below its 55MA & 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: Break support level
Our pivot point is 34,544.00
Preferable Price Action: Take sell positions below pivot with targets at 34,406.00 & 34,330.00.
Alternative Price Action: Above 34,544.00 looks for further upside to 34,681.00 & 34,770.00.
Comment: Price 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