Market Wrap: Stocks, Bonds, Commodities
The blue-chip Dow powered to its fifth consecutive record high on Friday and the S&P 500 closed slightly higher as investors bought shares that should benefit from a strong reopening of the U.S. economy, an outlook signaled by rising yields in the bond market.
The Dow Jones Industrial Average rose 293.05 points (0.90%) to close at 32,778.64 and the S&P 500 gained 4 points (0.10%) to 3,943.34. The Nasdaq Composite dropped 78.81 points (0.59%) to end at 13,319.87.
Global stock prices were off to a solid start while U.S. bond yields hovered near a 13-month peak on Monday as investors bet U.S. economic growth will accelerate after the passing of a massive stimulus package.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.71% to 879.50 levels. Australian index rose 0.10% to 6,773.80. Japanese Nikkei traded 0.17% higher to 29,766.97.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 0.49% to 3,853.25, Germany’s DAX rose 0.38% to 14,557.75 and France’s CAC higher 0.59% to 6,082.24 and U.K.’s FTSE 100 advance 0.61% to 6,801.69.
Benchmark 10-year U.S. Treasury rose as demand for risky asset grow again, today 10-year bond yield fell 0.84% to 1.621.
Oil prices rose on Monday, with Brent heading toward $70 a barrel, as data showed China’s economic recovery accelerated at the start of 2021, boosting the energy demand outlook at the world’s largest oil importer.
Spot Brent crude oil gained 0.93% to $66.22 per barrel. US West Texas Intermediate crude rose 0.94% to $69.87 a barrel.
The yellow metal traded 0.15% higher to 1724.35 dollars per ounce.
Market Wrap: Forex
The U.S. dollar held firm on Monday after bouncing off a one-week low last week, supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to grow.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.15% to 91.800.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.23% today. This left the pairing trading around $1.19270.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.10% to 109.140 level.
Other commodity related currency mixed against U.S dollar, AUD/USD down 0.31% to 0.77380 and NZD/USD rose 0.25% to 0.71930.
EUR/USD Intraday: Trend on downside
Our pivot point is at 1.19520
Preferable Price Action: Take short positions below pivot level with targets at 1.19190 & 1.18990 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19840 & 1.20040.
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
GBP/USD Intraday: Resistance at 1.39440
Our pivot point is at 1.39440
Preferable Price Action: Sell positions below pivot with targets at 1.38980 & 1.38700 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39900 & 1.40180.
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: Trend upside
Our pivot point is at 109.160
Preferable Price Action: Buy position above with the target at 109.390 and 109.520 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.920 and 108.790.
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: Break support level
Our pivot point is at 0.77570
Preferable Price Action: Sell Positions below pivot with targets at 0.77150 & 0.76950 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77970 & 0.78170 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: Support at 65.60
Our pivot point is at 65.60
Preferable Price Action: Above pivots buy Oil with 66.40 & 66.90 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.80 and 64.30 in extension.
Comment: Crude above its 20MA 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
XAU/USD Intraday: Bias on the Upside
Our pivot point is at 1719.00
Preferable Price Action: Further upside to 1731.00 & 1739.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1707.00 and 1699.00.
Comment: MACD in positive territory and price above 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
Dow Jones Intraday: Trend on the upside
Our pivot point is 32,710.00
Preferable Price Action: Take buy positions above pivot with targets at 32,900.00 & 33,050.00.
Alternative Price Action: Below 32,710.00 looks for further downside to 32,520.00 & 32,360.00.
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