Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed at a record high on Thursday, fueled by gains in Facebook following its strong earnings report, while investors awaited upcoming results from Amazon.
The Dow Jones Industrial Average rose 0.71% to end at 34,059.42 points, while the S&P 500 gained 0.64% to 4,210.02.
Asian shares slipped on Friday but world stocks held near a record high after strong U.S. economic data and the Federal Reserve’s commitment to continue supporting the economy fuelled investors’ appetite for risk.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.92% to 886.50 levels. Australian index fell 0.80% to 7,025.80. Japanese Nikkei traded 0.83% lower to 28,812.63.
European stocks were advance Friday, with the Stoxx Europe 50 Index rose 0.05% to 3,999.38, Germany’s DAX rose 0.54% to 15,236.40, and France’s CAC higher 0.06% to 6,306.30, and U.K.’s FTSE 100 gained 0.19% to 6,973.85.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yield rose 0.33% to 1.645.
Oil headed for a weekly gain — after topping $65 a barrel on Thursday — as signs of strengthening demand from the U.S. to China stoked optimism the demand recovery from the pandemic is accelerating.
Spot Brent crude oil fell 0.72% to $67.56 per barrel. US West Texas Intermediate crude lost 0.97% to $64.39 a barrel.
The yellow metal traded higher 0.05% to 1769.70 dollars per ounce.
Market Wrap: Forex
The U.S. dollar skidded toward a fourth straight weekly decline against a basket of major peers on Friday, as the Federal Reserve stuck to its message of ultra-low interest rates for longer.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.20% to 90.775.
The Euro US Dollar (EUR/USD) is a widely traded pair down 0.18% today. This left the pairing trading around $1.20950.
The Japanese yen fell against the U.S. dollar on Friday as the stock pushes lower. Today US/JPY flat to 108.910 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD flat to 0.77640 and NZD/USD down 0.15% to 0.72330.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.21200
Preferable Price Action: Take short positions below pivot level with targets at 1.20900 & 1.20770 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.21500 & 1.21630.
Comment: Pair below 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
GBP/USD Intraday: Break support level
Our pivot point is at 1.39350
Preferable Price Action: Sell positions below pivot with targets at 1.38970 & 1.38800 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39720 & 1.39900.
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 108.700
Preferable Price Action: Buy position above with the target at 109.000 and 109.150 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.400 and 108.250.
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 downside
Our pivot point is at 0.77860
Preferable Price Action: Sell Positions below pivot with targets at 0.77550 & 0.77430 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78140 & 0.78270 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: Strong trend on upside
Our pivot point is at 64.00
Preferable Price Action: Above pivots buy Oil with 64.80 & 65.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 63.20 and 62.70 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 1776.00
Our pivot point is at 1776.00
Preferable Price Action: Further downside to 1766.50 & 1762.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1784.50 and 1789.00.
Comment: MACD in negative territory and price below its 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 33,950.00
Preferable Price Action: Take buy positions above pivot with targets at 34,030.00 & 34,080.00.
Alternative Price Action: Below 33,950.00 looks for further downside to 33,870.00 & 33,820.00.
Comment: Price above 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 produced7