Market Wrap: Stocks, Bonds, Commodities
US stocks ended mostly lower on Friday, weighed down by technology and consumer discretionary shares, while the dollar edged higher after stronger-than-expected US manufacturing data.
The Dow Jones Industrial Average rose 123.69 points (0.36%) to 34,207.84, the S&P 500 lost 0.08% to 4,155.86 and the Nasdaq Composite dropped 64.75 points (0.48%) to 13,470.99.
Asian shares got off to a cautious start on Monday as investors anxiously awaited a key read on U.S. inflation this week for guidance on monetary policy, while Bitcoin took a hammering after China cracked down on mining and trading of the cryptocurrency.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.17% to 862.67 levels. Australian index rose 0.22% to 7,045.90. Japanese Nikkei traded 0.17% higher to 28,364.61.
European stocks were higher on Monday, with Germany’s DAX closed today and France’s CAC higher 0.11% to 6,393.86, and U.K.’s FTSE 100 gained 0.25% to 7,035.20.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields slumped 0.85% to 1.618.
Oil prices jumped 2% after three days of losses, driven higher as a storm formed in the Gulf of Mexico, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.
Spot Brent crude oil up 1.64% to $67.44 per barrel. US West Texas Intermediate crude advance 1.62% to $64.61 a barrel.
The yellow metal traded higher 0.31% to 1881.80 dollars per ounce.
Market Wrap: Forex
The dollar stood near its lowest level in three months against a resurgent euro, and traders pared earlier bets the Federal Reserve may move soon to taper its stimulus though markets were not fully convinced that higher U.S. inflation is transient.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, slipped 0.11% to 89.905.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.07% today. This left the pairing trading around $1.22160.
The Japanese yen rose against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY fell 0.14% to 108.780 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.05% to 0.77340, and NZD/USD jumped 0.17% to 0.71800.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.22010
Preferable Price Action: Take short positions below pivot level with targets at 1.21780 & 1.21630 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22250 & 1.22400.
Comment: Pair below 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 downside
Our pivot point is at 1.41560
Preferable Price Action: Sell positions below pivot with targets at 1.41220 & 1.41030 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.41900 & 1.42090.
Comment: Price 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
USD/JPY Intraday: Support at 108.720
Our pivot point is at 108.720
Preferable Price Action: Buy position above with the target at 109.100 and 109.280 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.340 and 108.160.
Comment: price above 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: Break support level
Our pivot point is at 0.77380
Preferable Price Action: Sell Positions below pivot with targets at 0.77050 & 0.76870 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77700 & 0.77880 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Break resistance level
Our pivot point is at 64.00
Preferable Price Action: Above pivots buy Oil with 65.10 & 65.60 as targets.
Alternative Price Action: Sell crude below pivot with targets at 63.00 and 62.50 in extension.
Comment: Crude is above its 20MA & 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 may reverse
Our pivot point is 1882.50
Preferable Price Action: Further downside to 1872.50 & 1866.50.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1892.50 and 1898.50.
Comment: MACD in negative territory and price below 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 34,240.00
Preferable Price Action: Take buy positions above pivot with targets at 34,460.00 & 34,560.00.
Alternative Price Action: Below 34,240.00 looks for further downside to 34,020.00 & 33,920.00.
Comment: Price above 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