Market Wrap: Stocks, Bonds, Commodities
Wall Street closed higher in a broad rally, an upbeat conclusion to a whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters.
Elon Musk continued to lower the price of Bitcoin, briefly sending it to the lowest since February after implying in a Twitter exchange that Tesla may sell cryptocurrency holdings.
The Dow Jones Industrial Average rose 360.68 points (1.06%) to 34,382.13, the S&P 500 gained 61.35 points (1.49%) to 4,173.85 and the Nasdaq Composite added 304.99 points (2.32%) to 13,429.98.
Asian share markets turned mixed on Monday as Chinese retail sales missed expectations and Singapore moved to close schools to fight a coronavirus outbreak, while more evidence of global inflation pressures helped gold to a three-month peak.
MSCI’s index of Asia-Pacific stocks outside Japan advance 0.10% to 848.20 levels. Australian index rose 0.13% to 7,023.60. Japanese Nikkei traded 0.92% lower to 27,824.32.
European stocks were lower on Monday, with the Stoxx Europe 50 Index declined 0.13% to 4,012.40, Germany’s DAX flat to 15,417.25, and France’s CAC lower 0.14% to 6,376.49, and U.K.’s FTSE 100 down 0.32% to 7,020.85.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields lost 1.13% to 1.617.
Oil prices drifted lower on Monday after the recovery of a major U.S. pipeline network eased concerns about oversupply, though fresh restrictions in Asia sparked by surging COVID-19 cases weighed on sentiment.
Spot Brent crude oil gained 0.13% to $68.80 per barrel. US West Texas Intermediate crude higher 0.12% to $65.44 a barrel.
The yellow metal traded higher 0.84% to 1852.80 dollars per ounce.
Market Wrap: Forex
The U.S. dollar was supported on Monday amid renewed worries about coronavirus restrictions in Asia, but investors are heavily positioned for it to fall while the U.S. Federal Reserve keeps rates low.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.05% to 90.273.
The Euro US Dollar (EUR/USD) is a widely traded pair flat today. This left the pairing trading around $1.21410.
The Japanese yen fell against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY down 0.10% to 109.230 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.19% to 0.77550 and NZD/USD slipped 0.55% to 0.72140.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.21270
Preferable Price Action: Take long positions above pivot level with targets at 1.21500 & 1.21650 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.21050 & 1.20900.
Comment: Pair 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 produced
GBP/USD Intraday: Suport at 1.40770
Our pivot point is at 1.40770
Preferable Price Action: Buy positions above pivot with targets at 1.41150 & 1.41400 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40400 & 1.40150.
Comment: Price above 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: Resistance at 109.450
Our pivot point is at 109.450
Preferable Price Action: Sell position below with the target at 109.200 and 109.050 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.700 and 109.850.
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: Trend on the downside
Our pivot point is at 0.77760
Preferable Price Action: Sell Positions below pivot with targets at 0.77400 & 0.77210 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78100 & 0.78290 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 65.10
Our pivot point is at 65.10
Preferable Price Action: Above pivots buy Oil with 65.80 & 66.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.40 and 64.00 in extension.
Comment: Crude above its 55MA 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 upside
Our pivot point is at 1846.80
Preferable Price Action: Further upside to 1858.00 & 1863.80.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1835.20 and 1829.00.
Comment: MACD in positive territory and price above 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: Trend upside
Our pivot point is 34,210.00
Preferable Price Action: Take buy positions above pivot with targets at 34,460.00 & 34,600.00.
Alternative Price Action: Below 33,970.00 looks for further downside to 33,970.00 & 33,830.00.
Comment: Price above 20MA & 55MA and RSI at 50 level.
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