Market Wrap: Stocks, Bonds, Commodities
Shares on Wall Street ended higher on Wednesday, as a selloff in technology-related stocks eased and a rotation into cyclical shares continued after Federal Reserve Chair Jerome Powell’s comments calmed inflation worries.
The Dow Jones Industrial Average closed up 424.51 points (1.35%) to 31,961.86, the S&P 500 gained 44.06 points (1.14%) to 3,925.43 and the Nasdaq Composite added 132.77 points (0.99%) to 13,597.97.
Asian stocks perked up on Thursday after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.
MSCI’s index of Asia-Pacific stocks outside Japan advance 1.50% to 928.20 levels. Australian index higher 0.83% to 6,834.00. Japanese Nikkei rose 1.67% to 30,168.30.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index rose 0.22% to 3,713.98, Germany’s DAX fell 0.07% to 13,966.70 and France’s CAC advance 0.51% to 5,827.67 and U.K.’s FTSE 100 gained 0.60% to 6,698.16.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 3.35% to 1.436.
Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week.
Spot Brent crude Oil up 0.51% to $66.52 per barrel. US West Texas Intermediate crude higher 0.41% to $63.48 a barrel.
The yellow metal traded 0.28% lower to 1794.30 dollars per ounce.
Market Wrap: Forex
The safe-haven U.S. dollar languished near three-year lows versus riskier currencies on Thursday as continued dovish signals from the Federal Reserve stoked reflation bets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, declined 0.45% to 89.763.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.47% today. This left the pairing trading around $1.22220.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.17% to 106.050 level.
Other commodity-related currency higher against U.S dollar, AUD/USD rose 0.43% to 0.80010 and NZD/USD gained 0.36% to 0.74600.
EUR/USD Intraday: Break resistance levels
Our pivot point is at 1.21700
Preferable Price Action: Take Long positions above pivot level with targets at 1.22040 & 1.22270 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21360 & 1.21120.
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: Support at 1.41300
Our pivot point is at 1.41300
Preferable Price Action: Buy positions above pivot with targets at 1.41860 & 1.42160 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40760 & 1.40460.
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: Support at 105.880
Our pivot point is at 105.880
Preferable Price Action: Buy position above with the target at 106.250 and 106.450 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.500 and 105.300.
Comment: price above 20MA & 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
AUD/USD Intraday: Trend on the upside
Our pivot point is at 0.79700
Preferable Price Action: Buy Positions above pivot with targets at 0.80130 & 0.80350 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.79270 & 0.79030 as targets.
Comment: Pair above it’s 20MA & 55MA an 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
CRUDEOIL Intraday: Support at 63.10
Our pivot point is at 63.10
Preferable Price Action: Above pivots buy Oil with 64.10 & 64.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 62.10 and 61.50 in extension.
Comment: Crude above its 20MA & 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: Trend downside
Our pivot point is at 1796.00
Preferable Price Action: Further downside to 1782.80 & 1775.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1809.00 and 1816.80.
Comment: MACD in negative territory and price below 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: Break major resistance levels
Our pivot point is 31,910.00
Preferable Price Action: Take buy positions above pivot with targets at 32,160.00 & 32,300.00.
Alternative Price Action: Below 31,910.00 looks for further downside to 31,660.00 & 31,520.00.
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 produced7