Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended the week at a record high on Friday, lifted by Nike and several banks, while weaker-than-expected inflation data eased worries about a sudden tapering in stimulus by the Federal Reserve.
The Dow Jones Industrial Average rose 0.69% to end at 34,433.84 points, while the S&P 500 gained 0.33% to 4,280.69. The Nasdaq Composite dropped 0.06%, to 14,360.39.
Asian shares got the week off to a cautious start on Monday as a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.06% to 891.26 levels. Australian index rose 0.05% to 7,309.60. Japanese Nikkei traded lower 0.10% to 29,039.50.
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.50% to 4,100.50, Germany’s DAX fell 0.15% to 15,584.60, and France’s CAC lost 0.42% to 6,595.38, and U.K.’s FTSE 100 down 0.48% to 7,102.50.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields fell 0.69% to 1.526.
Oil prices hit and then recoiled from highs last seen in October 2018 on Monday as investors eyed the outcome of this week’s OPEC+ as the United States and Iran wrangle over the revival of a nuclear deal, delaying a surge in Iranian oil exports.
Spot Brent crude oil lost 0.15% to $75.27 per barrel. US West Texas Intermediate crude flat to $74.05 a barrel.
The yellow metal higher 0.35% to 1783.50 dollars per ounce.
Market Wrap: Forex
The dollar held firm on Monday as investor focus shifted to the U.S. labor market, following softer-than-expected inflation data last week that has done little to soothe concerns about the Federal Reserve dialing down its monetary stimulus.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, flat to 91.838.
The Euro US Dollar (EUR/USD) is a widely traded pair that slipped 0.05% today. This left the pairing trading around $1.19250.
The Japanese yen gained against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY lost 0.05% to 110.710 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.103% to 0.75870, and NZD/USD lost 0.04% to 0.70680.
EUR/USD Intraday: In a consolidation zone
Our pivot point is at 1.19250
Preferable Price Action: Take long positions above pivot level with targets at 1.19670 & 1.19930 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.18810 & 1.18500.
Comment: Pair above its 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 1.39080
Our pivot point is at 1.39080
Preferable Price Action: Buy positions above pivot with targets at 1.39720 & 1.40100 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38510 & 1.38150.
Comment: Price above its 55MA & 20MA and 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
USD/JPY Intraday: Resistance at 110.800
Our pivot point is at 110.800
Preferable Price Action: Sell position below pivot with the target at 110.520 and 110.370 in extension.
Alternative Price Action: The upside breakout of pivot would call for 110.050 and 111.200.
Comment: price below its 55MA & 20MA 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: Trend on the upside
Our pivot point is at 0.75780
Preferable Price Action: Buy Positions above pivot with targets at 0.76300 & 0.76530 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.75270 & 0.75030 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 73.16
Preferable Price Action: Above pivots buy Oil with 74.50 & 75.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 71.72 and 70.82 in extension.
Comment: Crude is above its 55MA & 20MA 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 a consolidation zone
Our pivot point is 1780.50
Preferable Price Action: Further upside to 1790.90 & 1796.80.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1769.30 and 1763.50.
Comment: MACD in positive territory and price above its 20MA & 50MA.
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 34,377.00
Preferable Price Action: Take Buy positions above pivot with targets at 34,551.00 & 34,652.00.
Alternative Price Action: Below 34,377.00 looks for further downside to 34,200.00 & 34,097.00.
Comment: Price above its 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