Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed modestly higher at the end of a torpid week marked with few market-moving catalysts and persistent concerns over whether current inflation spikes could linger and cause the U.S. Federal Reserve to tighten its dovish policy sooner than expected.
The Dow Jones Industrial Average rose 13.36 points (0.04%) to 34,479.6, the S&P 500 gained 8.26 points (0.19%) to 4,247.44 and the Nasdaq Composite added 49.09 points (0.35%) to 14,069.42.
Global shares held near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.20% to 890.15 levels. Australian index rose 0.13% to 7,312.30. Japanese Nikkei traded advance 0.74% to 29,161.80.
European stocks were higher on Monday, with the Stoxx Europe 50 Index gained 0.26% to 4,137.56, Germany’s DAX up 0.20% to 15,724.45, and France’s CAC gained 0.26% 6,617.57, and U.K.’s FTSE 100 advance 0.37% to 7,160.45.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields rose 0.23% to 1.465.
Oil prices rose on Monday, extending three weeks of gains that have been underpinned by an improved outlook for fuel demand as increased COVID-19 vaccinations help lift travel curbs, along with tightness in supply.
Spot Brent crude oil gained 0.94% to $73.37 per barrel. US West Texas Intermediate crude higher 0.80% to $71.48 a barrel.
The yellow metal traded 0.92% lower to 1860.60 dollars per ounce.
Market Wrap: Forex
The U.S. dollar edged up against major currencies on Monday, after posting its biggest weekly gain in more than a month, as traders closed short positions ahead of a much-anticipated Federal Reserve policy meeting.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 90.438.
The Euro US Dollar (EUR/USD) is a widely traded pair that higher 0.10% today. This left the pairing trading around $1.21170.
The Japanese yen lost against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY flat to 109.620 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.15% to 0.77170, and NZD/USD gained 0.33% to 0.71470.
EUR/USD Intraday: Resistance at 1.21160
Our pivot point is at 1.21160
Preferable Price Action: Take short positions below pivot level with targets at 1.20650 & 1.20350 in extension.
Alternative Price Action: Above pivot looks for a further upside to 1.21710 & 1.22040.
Comment: Pair below 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
GBP/USD Intraday: Resistance at 1.41240
Our pivot point is at 1.41240
Preferable Price Action: Sell positions below pivot with targets at 1.40820 & 1.40540 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.41680 & 1.41910.
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: Support at 109.570
Our pivot point is at 109.570
Preferable Price Action: Buy position above pivot with the target at 109.838 and 109.977 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.333 and 109.220.
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 0.77230
Our pivot point is at 0.77230
Preferable Price Action: Sell Positions below pivot with targets at 0.76883 & 0.76706 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.77595 & 0.77776 as targets.
Comment: Pair below its 55MA & 20MA 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 produced
CRUDEOIL Intraday: Major support at 70.46
Our pivot point is at 70.46
Preferable Price Action: Above pivots buy Oil with 71.29 & 71.75 as targets.
Alternative Price Action: Sell crude below pivot with targets at 69.45 and 68.79 in extension.
Comment: Crude is below its 55MA & 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: Trend on the downside
Our pivot point is 1872.40
Preferable Price Action: Further downside to 1851.80 & 1840.63
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1894.30 and 1906.00.
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: In consolidation zone
Our pivot point is 34,430.00
Preferable Price Action: Take sell positions below pivot with targets at 34,293.00 & 34,220.00.
Alternative Price Action: Above 34,430.00 looks for further upside to 34,576.00 & 34,664.00.
Comment: Price at its 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