Daily Market Outlook, 22 May, 2024

Market Wrap: Stocks, Bonds, Commodities

Most Asian currencies kept to a tight range on Wednesday as the dollar steadied in anticipation of more cues on U.S. interest rates from the minutes of the Federal Reserve’s recent meeting.

The Dow Jones Industrial Average rose 66.22 points to 39,872.99, the S&P 500 gain 0.25% to 5,321.41 and the Nasdaq Composite surged 37.75 points to 16,832.62.

MSCI’s index of Asia-Pacific stocks outside Japan is surged 0.38% to 698.74 levels. The Australian index was low by 0.05% to 7,848.10. Japanese Nikkei Index decrease 0.86% today.

European stocks were negative on Wednesday, with the Stoxx Europe 50 Index decrease 0.30% to 5,032.05, Germany’s DAX drop 0.29% to 18,671.25, and France’s CAC lower 0.53% to 8,098.44 and  U.K.’s FTSE 100 loss 0.26% to 8,394.25.

Benchmark 10-year U.S. Treasury rose as demand for safe assets slipped again, today 10-year bond yields increase 0.52% to 4.4380.

Oil prices fell over 1% on Wednesday, retreating for a third straight day on expectations the Federal Reserve might keep U.S. interest rates higher for longer due to sustained inflation, potentially impacting fuel use in the world’s largest consumer.

Spot Brent crude oil descend 1.45% to $81.68 per barrel. US West Texas Intermediate crude is down 1.47% to $77.50 a barrel.

The yellow metal gold is decrease 0.46% to 2,414.85 dollars per ounce.

Market Wrap: Forex

The New Zealand dollar was an exception, rising sharply after the Reserve Bank of New Zealand struck a somewhat hawkish tone in its May meeting

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which ascend 0.05% to 104.605.

The Euro US Dollar (EUR/USD) is a widely traded pair that is increase 0.05% today. This left the pair trading around $1.0849.

The Japanese yen was positive against the U.S. dollar on Wednesday. Today USD/JPY is higher 0.20% to the 156.450 level.

Another commodity-related currency mixed against the U.S dollar, AUD/USD drop 0.11% to 0.66570, and NZD/USD ascend 0.39% to 0.61140 level.


EUR/USD Intraday: Support level at 1.08570

Our pivot point is at 1.08570

Preferable Price Action: Take buy positions above pivot level with targets at 1.08700 & 1.08790 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.08440 & 1.08350.

Comment: RSI is above 50 levels and pairs are above its 20MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 1.27380

Preferable Price Action: Buy positions above pivot with targets at 1.27530 & 1.27630 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.27230 & 1.27130.

Comment: RSI is above 50 level and Pairs are above its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


USD/JPY Intraday: Trend on the upside

Our pivot point is at 156.360

Preferable Price Action: Buy position above pivot with the target at 156.590 and 156.780 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 156.130 and 155.940.

Comment: MACD is above 50 levels and pairs above its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 0.66660

Preferable Price Action: Sell positions below pivot with targets at 0.66460 & 0.66340 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.66860 & 0.66980 as targets.

Comment: RSI is below 50 levels and pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


CRUDEOIL Intraday: Major trend on the downside

Our pivot point is at 77.79

Preferable Price Action: Below pivot sell oil with 77.15 & 76.71 as targets.

Alternative Price Action: Buy crude above pivot with targets at 78.38 and 78.82 in extension.

Comment: MACD is negative territory and pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 2424.20

Preferable Price Action: Further downside to 2404.10 and 2389.30.

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 2444.00 and 2458.10.

Comment: MACD is below 50 levels and pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


Dow Jones Intraday: Trend on the downside 

Our pivot point is 39,892.80

Preferable Price Action: Take sell positions below the pivot with targets at 39,818.80 & 39,764.90.

Alternative Price Action: Above 39,892.80 looks for further upside to 39,962.40 & 40,011.10.

Comment: RSI is below 50 levels and pairs below its 20MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced