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Forex News June 18, 2022

US stocks

  • US stocks end mixed. For the duration of the week,
  • The major US stock indices have posted mixed results for the day
  • The Dow Jones Industrial Average is down 38.31 points, or 0.13 percent, to 29888.79.
  • The S&P 500 is up 8.09 points, or 0.22 percent, to 3674.85.
  • The NASDAQ is up 152.26 points, or 1.42 percent, to 10798.36.
  • The Russell 2000 index is up 15.85 points, or 0.96 percent, to 1665.69.
  • Major indices are down for the third week in a row
  • The Dow was down -274 points at the session lows
  • The S&P was down -29.95 points at the session lows
  • The Nasdaq was only down -7.3 points from the session lows.
  • The NASDAQ index is -33.4 percent below its all-time high; the S&P is -23.7 percent below its all-time high.
  • The Dow is down -19.12 percent from its all-time high. The Dow industrial average was down -19.75 percent from its all-time high at the end of the week, just shy of entering bear market territory. The NASDAQ index closed at 10795.92, just above its 200-week moving average, avoiding the first close below that level since the week of March 16.

 NZDUSD

  • NZDUSD recovers after a failed dip below the 100-hour moving average.
  • Price recovery between the 100/200 hour moving averages
  • The move extended above the 100 and 200 hour moving averages, as well as briefly above the 50 percent retracement at 0.63857 for this pair.
  • However, as the market closed yesterday, the price rotated lower to the 200-hour moving average, closing near that MA barometer.
  • The price fell during the US session today. The pair bounced after initially finding support near a swing area near 0.6311, before rotating back down through the 0.6311 level toward the lower 100 hour MA at 0.6277.
  • The low broke through that MA, but rebounded and is now trading between the 100 hour MA below and the 200 hour MA above, near the 0.6311 swing level. The price is in a technical neutral zone, waiting for the next shove.
  • Traders will be looking for bias clues in the MAs next week. A move above the 200-hour moving average is more bullish. A move below the 100-hour moving average is more bearish.
  • Housing starts and building permits all fell sharply this week.
  • The Fed will also be a focus, with Fed Chair Powell testifying on Capitol Hill on Wednesday and Thursday.

Crude Oil

  • WTI crude oil settles at $107.99 per barrel for August delivery, down -$7.26 on the day That is for the contract for August.
  • The last trading day for the July contract is June 21. It finished the day at $109.56, down -$8.03 or -6.83 percent.
  • The decline has been aided by a stronger dollar, but it may also reflect a drop in global demand. Today’s industrial production was lower than expected.
  • The housing market is under pressure as interest rates and prices rise, reducing demand. People are beginning to feel the effects of stock market declines, inflation eroding purchasing power, and the possibility of a drop in housing prices.
  • In certain industries, the employment cycle is shifting from hiring to not hiring to job cuts. Employment is a lagging indicator, but it is beginning to slow.
  • Driving is a necessity for many, but if driving can be reduced to save a few days or a week for some and a week for others, it will be done.

Nasdaq

  • The Nasdaq has extended its gains to 2%, reaching a session high.
  • The dip purchasers are nibbling
  • The drop in oil prices and Treasury yields aided the stock market’s turnaround, with the Nasdaq leading the way.
  • The index is down 33% this year, and the bear market is unlikely to end despite a 75 basis point Fed hike, with Kashkari hinting at another in July.
  • However, bear market rallies can be intense, and they frequently begin when everyone is bearish. Yesterday’s price action had a distinct odour of puke. As even the safest stocks were dumped, the widows-and-orphans stocks were being tossed out with everything else.
  • Such capitulation tends to flush out all the weak hands, leaving only buyers. Today, those buyers have been nibbling.
  • We’ll see more of that after the long weekend, but the last three-day weekend in the United States was Memorial Day, which was followed by two days of selling.

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