Market Wrap: Stocks, Bonds, Commodities
The S&P and Nasdaq slipped on Tuesday from record closing levels as investors digested a batch of corporate earnings results, while an expected policy announcement from the Federal Reserve on Wednesday helped to limit moves.
The Dow Jones Industrial Average fell 22.96 points (0.07%) to 30,937.04, the S&P 500 lost 5.74 points (0.15%) to 3,849.62 and the Nasdaq Composite dropped 9.93 points (0.07%) to 13,626.07.
Asian equities looked set to rise on Wednesday, bouncing back from a steep sell-off on Tuesday, while Australian stocks were seen opening weaker in a catchup after a Tuesday holiday.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.66% to 911.30 levels. Australian index fell 0.65% to 6,780.60. Japanese Nikkei traded 0.31% higher to 28,635.20.
European stocks were declined on Wednesday, with the Stoxx Europe 50 Index down 0.55% to 3,573.05, Germany’s DAX slumped 0.47% to 13,806.40 and France’s CAC fell 0.26% to 5,509.02 and U.K.’s FTSE 100 down 0.33% to 6,632.27.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield higher 0.31% to 1.043.
Oil prices climbed on Wednesday after industry data showed crude stockpiles fell unexpectedly last week and China, the world’s second-biggest oil user, reported its lowest daily rise in COVID-19 cases, bolstering hopes of a pick-up in demand.
Spot Brent crude Oil rose 0.50% to $55.92 per barrel. US West Texas Intermediate crude above 0.49% to $52.87 a barrel.
The yellow metal traded 0.31% lower to 1846.90 dollar per ounce.
Market Wrap: Forex
The dollar was trapped on the back foot against major peers on Wednesday as markets wait on comments from Federal Reserve Chair Jerome Powell, who is likely to renew a commitment to ultra-easy policy.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.25% to 90.375.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.30% today. This left the pairing trading around $1.21240.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY rose 0.17% to 103.770 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.19% to 0.77270 and NZD/USD lost 0.10% to 0.71370.
EUR/USD Intraday: Support at 1.21520
Our pivot point is at 1.21520
Preferable Price Action: Take Long positions above pivot level with targets at 1.21760 & 1.21900 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21290 & 1.21150.
Comment: Pair above it’s 55MA & 20MA an 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 1.37210
Preferable Price Action: Buy positions above pivot with targets at 1.37680 & 1.37980 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36750 & 1.36450.
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: Bias on the downside
Our pivot point is at 103.790
Preferable Price Action: Sell position below with the target at 103.560 and 103.430 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.010 and 104.140.
Comment: price below 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 upside
Our pivot point is at 0.77250
Preferable Price Action: Buy Positions above pivot with targets at 0.77560 & 0.77760 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76930 & 0.76730 as targets.
Comment: Pair above its 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: In a consolidation zone
Our pivot point is at 52.60
Preferable Price Action: Above pivots buy Oil with 53.20 & 53.60 as targets.
Alternative Price Action: Sell crude below pivot with targets at 52.00 and 51.60 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: Support at 1845.60
Our pivot point is at 1845.60
Preferable Price Action: Further upside to 1855.80 & 1860.80.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1835.60 and 1830.60.
Comment: MACD in positive territory and price below 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: Bias on the downside
Our pivot point is 30,960.00
Preferable Price Action: Take sell positions below pivot with targets at 30,800.00 & 30,700.00 extension.
Alternative Price Action: Above 30,960.00 looks for further upside to 31,130.00 & 31,230.00.
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 produced7