Trading Central--MORNING MARKET UPDATE

Market Wrap: Stocks, Bonds, Commodities.

On Tuesday, major U.S. stock indexes were little changed. The Dow Jones Industrial Average rose 63 points (+0.17%) to 37,798, snapping a six-day losing streak. The S&P 500 declined 10 points (-0.21%) to 5,051, while the Nasdaq 100 added 6 points (+0.04%) to 17,713.

The U.S. 10-year Treasury yield advanced a further 4.1 basis points to 4.669%.U.S. Federal Reserve Chairman Jerome Powell pointed out that, considering hotter-than-expected inflation data, interest rates could be maintained at current levels for a longer-than-expected period.

Technology and healthcare stock sectors posted gains, while real estate, utilities and energy sectors lost the most.

Bank of America (BAC) fell 3.53%. The major U.S. bank reported lower first-quarter earnings.

Bank of New York Mellon (BK) dropped 1.98%.

UnitedHealth Group (UNH) gained 5.22%. The health-insurance provider reported better-than-expected quarterly results.

Johnson & Johnson (JNJ) closed 2.13% lower as quarterly sales missed expectations.

Regarding U.S. economic data, building permits slid 4.3% on month in March (vs -0.7% expected), housing starts plunged 14.7% (vs -0.8%).

U.S. industrial production grew 0.4% on month in March (vs +0.2%) expected.

European stocks closed lower, with the DAX 40 falling 1.44%, the CAC 40 down 1.40% and the FTSE 100 down 1.82%.

U.S. WTI crude-oil dipped $0.14 to $85.27 a barrel.

Gold price was little changed at $2,382 an ounce. 

Market Wrap: Forex

The U.S. dollar index dipped to 104.05.

EUR/USD gained 18 pips to 1.0772. Germany's industrial production declined 1.6% on month in December (vs -0.3% expected).

USD/JPY rose 21 pips to 148.15.

GBP/USD climbed 30 pips to 1.2627. In the U.K., the Halifax house price index added 1.3% on month in January (vs +0.5% expected).

AUD/USD eased 5 pips to 0.6518.

USD/CHF climbed 48 pips to 0.8743. 

USD/CAD dropped 32 pips to 1.3460. Canada recorded a trade deficit of C$310 million (vs a trade surplus of C$1.8 billion expected), the first trade deficit since September 2023.

Bitcoin eventually broke out its recent trading range, trading 2.5% higher to $44,200. Thanks to Powell's relatively hawkish comments, the U.S. dollar held its strength against other major currencies, with the dollar index charging higher to 106.37.

USD/JPY ran up to 154.79, the highest level since 1990.

EUR/USD once sank down to 1.0601, a five-month low. In Germany, the ZEW economic sentiment index climbed to 42.9 in April (vs 32.0 expected).

GBP/USD fell 20 pips to 1.2424. U.K. jobless rate rose to 4.2% in February (vs 4.0% expected).

AUD/USD dropped 41 pips to 0.6400.

NZD/USD slid a further 22 pips to 0.5881. This morning, New Zealand's data showed that the inflation rate slowed to 4.0% on year in the first quarter (vs 4.3% expected).

USD/CHF gained 14 pips to 0.9128.

USD/CAD rose 43 pips to 1.3829. Canada's inflation rate ticked higher to 2.9% on year in March (vs 2.7% expected).

Bitcoin failed to break above the $67,000 level and then pulled back to a low of $62,315. 

GBP/USD Intraday: key resistance at 1.2470.

Pivot:

1.2470

Our preference:

Short positions below 1.2470 with targets at 1.2400 & 1.2375 in extension.

Alternative scenario:

Above 1.2470 look for further upside with 1.2495 & 1.2520 as targets.

Comment:

As long as 1.2470 is resistance, look for choppy price action with a bearish bias.

USD/JPY Intraday: further advance. 

Pivot:

154.35

Our preference:

Long positions above 154.35 with targets at 154.90 & 155.15 in extension.Alternative scenario:

Below 154.35 look for further downside with 154.10 & 153.85 as targets.

Comment:

The RSI lacks downward momentum.

EUR/USD Intraday: under pressure. 

Pivot:

1.0650

Our preference:

Short positions below 1.0650 with targets at 1.0600 & 1.0585 in extension.

Alternative scenario:

Above 1.0650 look for further upside with 1.0665 & 1.0680 as targets.

Comment:

As long as the resistance at 1.0650 is not surpassed, the risk of the break below 1.0600 remains high.

Crude Oil (WTI)‎ (K4)‎ Intraday: bullish bias above 84.80. 

Pivot:

84.80

Our preference:

Long positions above 84.80 with targets at 86.10 & 86.60 in extension.

Alternative scenario:

Below 84.80 look for further downside with 84.20 & 83.60 as targets.

Comment:

The RSI calls for a rebound.

Gold Intraday: the bias remains bullish. 

Pivot:

2363.00

Our preference:

Long positions above 2363.00 with targets at 2398.00 & 2409.00 in extension.

Alternative scenario:

Below 2363.00 look for further downside with 2352.00 & 2340.00 as targets.

Comment:

The RSI calls for a bounce.

.

.

.

#WeTradeGlobal# #USDollar# #USD/JPY# #GBP/USD# #EUR/USD# #trading# #forextrading# #howtomasterforextrading##tradingskill# #mytradingstory#