Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq closed at record highs on Monday, fueled by Tesla Inc and other heavyweight growth stocks ahead of a deluge of earnings reports this week.
The Dow Jones Industrial Average fell 0.18% to end at 33,981.57 points, while the S&P 500 gained 0.18% to 4,187.62. The Nasdaq Composite climbed 0.87% to 14,138.78.
Asian shares fell and U.S. stock futures were steady on Tuesday as caution ahead of a U.S. Federal Reserve meeting and a slew of corporate earnings offset growing optimism about the global economic recovery from the COVID-19 blow.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 892.00 levels. Australian index lower 0.17% to 7,033.80. Japanese Nikkei traded 0.46% lower to 28,991.89.
European stocks were declined Tuesday, with the Stoxx Europe 50 Index fell 0.21% to 4,012.58, Germany’s DAX down 0.16% to 15,272.10, and France’s CAC flat to 6,276.70, and U.K.’s FTSE 100 flat to 6,961.50.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yield rose 0.92% to 1.584.
Oil prices bounced back early on Tuesday from drops in the previous session, but gains were seen likely capped by growing concern about fuel demand in India, the world’s third-biggest crude importer now slammed by spiraling new coronavirus cases.
Spot Brent crude oil rose 1.12% to $65.76 per barrel. US West Texas Intermediate crude gained 1.16% to $62.63 a barrel.
The yellow metal traded lower 0.12% to 1778.10 dollars per ounce.
Market Wrap: Forex
The dollar hovered near multi-week lows versus major peers on Tuesday, weighed by subdued Treasury yields, as investors consolidated positions ahead of the Federal Reserve’s policy decision this week.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.23% to 90.985.
The euro held at an eight-week high against the American dollar on Monday as expectations the U.S. Federal Reserve will maintain its dovish stance at a policy meeting weighed on the greenback.
The Euro US Dollar (EUR/USD) is a widely traded pair down 0.15% today. This left the pairing trading around $1.20650.
The Japanese yen fell against the U.S. dollar on Tuesday as the stock pushes lower. Today US/JPY rose 0.25% to 108.350 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD lost by 0.29% to 0.77760 and NZD/USD declined 0.37% to 0.72060.
EUR/USD Intraday: Break support level
Our pivot point is at 1.20800
Preferable Price Action: Take short positions below pivot level with targets at 1.20500 & 1.20350 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.21100 & 1.21250.
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
GBP/USD Intraday: Resistance at 1.39040
Our pivot point is at 1.39040
Preferable Price Action: Sell positions below pivot with targets at 1.38570 & 1.38370 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39500 & 1.39700.
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: Trend on the upside
Our pivot point is at 108.200
Preferable Price Action: Buy position above with the target at 108.450 and 108.600 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.950 and 107.800.
Comment: price above 20MA & 50MA 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 0.77950
Preferable Price Action: Sell Positions below pivot with targets at 0.77570 & 0.77400 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78310 & 0.78490 as targets.
Comment: Pair 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
CRUDEOIL Intraday: Break support area
Our pivot point is at 61.90
Preferable Price Action: Above pivots buy Oil with 62.70 & 63.15 as targets.
Alternative Price Action: Sell crude below pivot with targets at 61.10 and 60.65 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: Resistance at 1782.50
Our pivot point is at 1782.50
Preferable Price Action: Further downside to 1776.40 & 1772.40.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1788.60 and 1792.60
Comment: MACD in positive territory and price at 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: In consolidation zone
Our pivot point is 34,080.00
Preferable Price Action: Take sell positions below pivot with targets at 33,960.00 & 33,900.00.
Alternative Price Action: Above 34,080.00 looks for further upside to 34,200.00 & 34,260.00.
Comment: Price above 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 produced7