Market Wrap: Stocks, Bonds, Commodities
U.S. stocks climbed on Monday, with both the S&P 500 and Nasdaq jumping more than 1% as a retreat in U.S. Treasury yields helped lift expensive stocks in sectors such as technology as investors attempt to gauge the path of inflation.
The Dow Jones Industrial Average rose 178.6 points (0.52%) to 34,386.44, the S&P 500 gained 40.37 points (0.97%) to 4,196.23 and the Nasdaq Composite added 185.44 points (1.38%) to 13,656.44.
On Tuesday, the Asia Pacific index was gained as comments from U.S. Federal Reserve officials eased investor concerns about runaway inflation. Chinese index advance more than 2% Led by Consumer Sector as inflation fears fade.
MSCI’s index of Asia-Pacific stocks outside Japan gained 1.54% to 874.88 levels. Australian index rose 0.98% to 7,115.20. Japanese Nikkei traded 0.67% higher to 28,553.98.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose from 0.55% to 4,048.21, Germany’s DAX gained 0.64% to 15,534.70, and France’s CAC flat 6,408.60, and U.K.’s FTSE 100 flat to 7,050.57.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields slumped 1.06% to 1.591.
Oil prices rose more than 3% on Monday as a demand bump fueled by COVID-19 vaccination drives gave traders optimism that the market can absorb any Iranian oil that would come on the market if Western talks with Tehran lead to the lifting of sanctions.
Spot Brent crude oil fell 0.37% to $68.12 per barrel. US West Texas Intermediate crude lost 0.38% to $65.80 a barrel.
The yellow metal traded flat to 1883.50 dollars per ounce.
Market Wrap: Forex
The dollar floated at the bottom of its recent range on Tuesday, as softer-than-expected U.S. data and fresh insistence from Federal Reserve officials that policy would stay on hold allayed investor fears about inflation forcing interest rates higher.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, slipped 0.28% to 89.590.
The Euro US Dollar (EUR/USD) is a widely traded pair that rose 0.32% today. This left the pairing trading around $1.22530.
The Japanese yen rose against the U.S. dollar on Tuesday as the stock pushes higher. Today US/JPY fell 0.05% to 108.690 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.18% to 0.77650, and NZD/USD up 0.15% to 0.72250.
EUR/USD Intraday: Break resistance level
Our pivot point is at 1.22410
Preferable Price Action: Take long positions above pivot level with targets at 1.22730 & 1.22900 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.22100 & 1.21900.
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 upside
Our pivot point is at 1.41650
Preferable Price Action: Buy positions above pivot with targets at 1.42000 & 1.42190 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.41300 & 1.41110.
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: Trend on the downside
Our pivot point is at 108.870
Preferable Price Action: Sell position below with the target at 108.650 and 108.550 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.080 and 109.180.
Comment: price below its 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: Support at 0.77520
Our pivot point is at 0.77520
Preferable Price Action: Buy Positions above pivot with targets at 0.77800 & 0.77960 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77250 & 0.77080 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 64.95
Preferable Price Action: Above pivots buy Oil with 66.35 & 67.05 as targets.
Alternative Price Action: Sell crude below pivot with targets at 63.55 and 62.85 in extension.
Comment: Crude is above its 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: In consolidation zone
Our pivot point is 1878.60
Preferable Price Action: Further upside to 1887.90 & 1893.10.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1869.30 and 1864.20.
Comment: MACD in positive territory and price above 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: Strong Trend on the upside
Our pivot point is 34,390.00
Preferable Price Action: Take buy positions above pivot with targets at 34,600.00 & 34,700.00.
Alternative Price Action: Below 34,390.00 looks for further downside to 34,170.00 & 34,070.00.
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