Market Wrap: Stocks, Bonds, Commodities
U.S. stocks and the dollar slipped on Wednesday in listless trade after the Federal Reserve gave no clue about when it might start reducing its purchases of government bonds, even as it said the economic recovery is on track.
The Dow Jones Industrial Average fell 0.36% to 34,930.93, the S&P 500 was flat to 4400.64, while the tech-focused Nasdaq Composite rebounded 0.70% to 14,762.60 after hitting its lowest in more than two months on Tuesday.
Asia Pacific stocks were up on Thursday morning, after China took action to calm recent market turbulence, while the U.S. Federal Reserve said more economic progress was needed before it begins asset tapering.
MSCI’s index of Asia-Pacific stocks outside Japan advance 2.19% to 829.74 levels. Australian index rose 0.52% to 7,417.40. Japanese Nikkei traded higher 0.73% to 27,782.42.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gained 0.27% to 4,114.16, Germany’s DAX rose 0.10% to 15,584.50, and France’s CAC up 0.72% to 6,656.23, and U.K.’s FTSE 100 up 0.51% to 7,052.55.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields fell 1.10% to 1.249.
Oil was up Thursday morning in Asia as the latest data showed a draw in U.S. crude oil supplies to their lowest level since January 2020.
Spot Brent crude oil rose 0.97% to $74.59 per barrel. US West Texas Intermediate crude higher 1.15% to $73.22 a barrel.
The yellow metal is higher 1.04% to 1818.40 dollars per ounce.
Market Wrap: Forex
The dollar hovered around a two-week low on Thursday, weighed down by the latest insistence from Federal Reserve chairman Jerome Powell that rate increases aren’t on the radar, while sterling has been riding higher with re-opening optimism.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, fell 0.31% to 92.032.
The Euro US Dollar (EUR/USD) is a widely traded pair that rose 0.25% today. This left the pairing trading around $1.18690.
The Japanese yen gined against the U.S. dollar on Thursday as the stock pushes lower. Today US/JPY lost 0.11% to 109.770 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD rose 0.33% to 0.73990, and NZD/USD rose 0.62% to 0.69890.
EUR/USD Intraday: Break resistance level
Our pivot point is at 1.18400
Preferable Price Action: Take long positions above pivot level with targets at 1.18800 & 1.19100 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.17930 & 1.17690.
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 on the upside
Our pivot point is at 1.38970
Preferable Price Action: Buy positions above pivot with targets at 1.39770 & 1.40170 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38150 & 1.37700.
Comment: Price above its 55MA & 20MA and RSI at overbought 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 109.980
Preferable Price Action: Sell position below pivot with the target at 109.550 and 109.370 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.370 and 110.550.
Comment: price below its 20MA & 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: In a consolidation zone
Our pivot point is at 0.73690
Preferable Price Action: Buy Positions above pivot with targets at 0.74100 & 0.74280 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.73300 & 0.73110 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: Break resistance level
Our pivot point is at 72.21
Preferable Price Action: Above pivots buy Oil with 73.33 & 74.03 as targets.
Alternative Price Action: Sell crude below pivot with targets at 70.98 and 70.22 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: Trend on the upside
Our pivot point is 1809.80
Preferable Price Action: Further upside to 1821.70 & 1827.50.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1798.00 and 1791.80.
Comment: MACD in positive territory and price above it’s 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: Major support at 34,914.00
Our pivot point is 34,914.00
Preferable Price Action: Take long positions above pivot with targets at 35,113.00 & 35,204.00.
Alternative Price Action: Below 34,914.00 looks for further downside to 34,720.00 & 34,629.00.
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 produced