Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed lower on Monday, slipping from last week’s record levels, as investors awaited guidance from first-quarter earnings to justify high valuations, while Tesla Inc shares fell after a fatal car crash.
The Dow Jones Industrial Average fell 123.04 points (0.36%) to 34,077.63. The S&P 500 lost 22.21 points (0.53%) at 4,163.26; while the Nasdaq Composite dropped 137.58 points (0.98%) to 13,914.77.
Asian shares rose on Tuesday, led by a stronger Chinese opening and shaking off the initial drag from tech-driven Wall Street losses, while the dollar stayed at multiweek lows against other major currencies.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.39% to 886.89 levels. Australian index down 0.68% to 7,017.80. Japanese Nikkei traded 1.97% lower to 29,100.38.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index slipped 0.58% to 3,996.71, Germany’s DAX fell 0.20% to 15,336.95 and France’s CAC lower 0.85% to 6,243.30 and U.K.’s FTSE 100 lost 0.54% to 6,962.50.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 1.58% to 1.624.
Oil advanced toward $64 a barrel as traders monitored a patchwork recovery in demand from the coronavirus pandemic a year to the day since futures for the U.S. benchmark plunged below zero.
Spot Brent crude Oil up 1.22% to $67.87 per barrel. US West Texas Intermediate crude advance 1.10% to $64.13 a barrel.
The yellow metal traded down 0.30% to 1780.30 dollars per ounce.
Market Wrap: Forex
The dollar was down on Tuesday morning in Asia, remaining near a six-week low as the euro climbed on the back of a rallying COVID-19 vaccine rollout.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.13% to 90.930.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.30% today. This left the pairing trading around $1.20680.
The Japanese yen fell against the U.S. dollar on Tuesday as the stock pushes lower. Today US/JPY gained 0.29% to 108.440 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.52% to 0.77960 and NZD/USD rose 0.52% to 0.72160.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.20450
Preferable Price Action: Take long positions above pivot level with targets at 1.20850 & 1.21050 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20030 & 1.19830.
Comment: Pair above 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
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.39490
Preferable Price Action: Buy positions above pivot with targets at 1.40250 & 1.40550 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38730 & 1.38400.
Comment: Price above its 20MA & 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
USD/JPY Intraday: Break resistance area
Our pivot point is at 108.200
Preferable Price Action: Buy position above with the target at 108.600 and 108.800 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.800 and 107.600.
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: Support at 0.77810
Our pivot point is at 0.77810
Preferable Price Action: Buy Positions above pivot with targets at 0.78140 & 0.78340 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77480 & 0.77280 as targets.
Comment: Pair above 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
CRUDEOIL Intraday: Support at 63.50
Our pivot point is at 63.50
Preferable Price Action: Above pivots buy Oil with 64.60 & 65.10 as targets.
Alternative Price Action: Sell crude below pivot with targets at 62.50 and 62.00 in extension.
Comment: Crude 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
XAU/USD Intraday: Resistance at 1776.80
Our pivot point is at 1776.80
Preferable Price Action: Further downside to 1763.00 & 1756.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1790.00 and 1797.00.
Comment: MACD in negative territory and price below 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 on the upside
Our pivot point is 33,990.00
Preferable Price Action: Take buy positions above pivot with targets at 34,120.00 & 34,190.00.
Alternative Price Action: Below 33,990.00 looks for further downside to 33,860.00 & 33,790.00.
Comment: Price above 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 produced7