Market Wrap: Stocks, Bonds, Commodities
Wall Street rebounded Tuesday as Federal Reserve Chairman Jerome Powell vowed not to raise rates too quickly as the dollar and oil gave up earlier gains.
The Dow Jones Industrial Average rose 0.20% to end at 33,945.58 points, while the S&P 500 gained 0.51% to 4,246.43. The Nasdaq Composite climbed 0.79% to 14,253.30.
Asia Pacific stocks were mostly up Wednesday morning, with reassuring comments from U.S. Federal Reserve officials on inflation and monetary policy starting to calm investors’ frayed nerves.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.93% to 877.27 levels. Australian index fell 0.59% to 7,298.90. Japanese Nikkei traded flat to 28,893.00.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index rose 0.05% to 4,124.53, Germany’s DAX fell 0.10% to 15,621.90, and France’s CAC flat 6,609.70, and U.K.’s FTSE 100 rose 0.11% to 7,098.80.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields flat to 1.472.
Crude oil prices settled slightly lower on Tuesday after Brent rose above $75 a barrel for the first time in over two years, as OPEC+ discussed raising oil production from lower production levels.
Spot Brent crude oil gained 0.61% to $75.27 per barrel. US West Texas Intermediate crude rose 0.51% to $73.20 a barrel.
The yellow metal higher 0.10% to 1778.50 dollars per ounce.
Market Wrap: Forex
The dollar paused for breath on Tuesday as traders looked to testimony from Federal Reserve Chair Jerome Powell for further guidance on the central bank’s recent surprise shift in its policy outlook, while support crept back for cryptocurrencies.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, advanced 0.14% to 91.880.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.17% today. This left the pairing trading around $1.19170.
The Japanese yen fell against the U.S. dollar on Wednesday as the stock pushes higher. Today US/JPY up 0.17% to 110.820 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.15% to 0.75400, and NZD/USD fell 0.28% to 0.70000.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.19103
Preferable Price Action: Take long positions above pivot level with targets at 1.19604 & 1.19911 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18580 & 1.18261.
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: Trend on the upside
Our pivot point is at 1.39258
Preferable Price Action: Buy positions above pivot with targets at 1.39783 & 1.4002 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38846 & 1.38546.
Comment: Price above 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
USD/JPY Intraday: Trend on the upside
Our pivot point is at 110.601
Preferable Price Action: Buy position above pivot with the target at 110.119 and 110.412 in extension.
Alternative Price Action: The downside breakout of pivot would call for 110.115 and 109.745.
Comment: price above its 55MA & 20MA 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: In a consolidation zone
Our pivot point is at 0.75678
Preferable Price Action: Sell Positions below pivot with targets at 0.75152 & 0.74850 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.76163 & 0.76458 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Support at 72.35
Our pivot point is at 72.35
Preferable Price Action: Above pivots buy Oil with 73.59 & 74.21 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.13 and 70.29 in extension.
Comment: Crude is above 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: Support at 1775.10
Our pivot point is 1775.10
Preferable Price Action: Further upside to 1789.83 & 1792.09.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1766.76 and 1761.84.
Comment: MACD in positive territory and price above its 20MA & 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 33,902.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,208.00 & 34,377.00.
Alternative Price Action: Below 33,902.00 looks for further downside to 33,590.00 & 33,433.00.
Comment: Price above its 55MA and RSI at oversold 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