Daily Market Outlook, 18 November, 2021

Market Wrap: Stocks, Bonds, Commodities

Wall Street benchmarks ended Wednesday lower on inflation fears and supply chain concerns stemming from retailers’ earnings, with investors betting the Federal Reserve will raise interest rates sooner than expected to tame rising prices.

The Dow Jones Industrial Average fell 211.17 points (0.58%) to 35,931.05, the S&P 500 lost 12.23 points (0.26%) to 4,688.67 and the Nasdaq Composite dropped 52.28 points (0.33%) to 15,921.57.

MSCI’s index of Asia-Pacific stocks outside Japan is fell 0.76% to 820.65 levels. Australian index rise 0.13% to 7,379.20. Japanese Nikkei Index lowers 0.30% to 29,598.66.

European stocks were higher on Thursday, with the Stoxx Europe 50 Index gaining 0.19% to 4,409.45, Germany’s DAX rose 0.19% to 16,282.85, and France’s CAC advances 0.19% to 7,170.50, and U.K.’s FTSE 100 slipped 0.15% to 7,280.50.

Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields down 0.84% to 1.591.

Oil prices slumped on Wednesday, driving major benchmarks to their lowest settlement levels since early October after OPEC and the International Energy Agency warned of impending oversupply while rising COVID-19 cases in Europe increased downside risks to demand recovery.

Spot Brent crude oil loss 0.59% to $79.81 per barrel. US West Texas Intermediate crude slipped 0.77% to $76.95 a barrel.

The yellow metal traded slipped 0.25% to 1865.50 dollars per ounce.

Market Wrap: Forex 

The dollar rose to a 16-month high on Tuesday after data showed U.S. consumers looked past rising prices and drove retail sales higher than expected last month, while the euro slumped amid growth concerns and a surge in COVID-19 cases in Europe.

Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which flat to 95.808.

The Euro US Dollar (EUR/USD) is a widely traded pair that is flat today. This left the pairing trading around $1.13180.

The Japanese yen fell against the U.S. dollar on Thursday as the stock pushes higher. Today US/JPY is gained 0.08% to 114.160 level.

Another commodity-related currency gained against the U.S dollar, AUD/USD advanced 0.19% to 0.72780, and NZD/USD gained 0.48% to 0.70028 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.13420

Preferable Price Action: Take Short positions Below pivot level with targets at 1.12990 & 1.12710 in extension.

Alternative Price Action: Above pivot looks for a further Upside to 1.13870 & 1.14120.

Comment: Pair below its 55MA & 20MA 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


GBP/USD Intraday: Support at 1.34100

Our pivot point is at 1.34570

Preferable Price Action: Buy positions above pivot with targets at 1.35240 & 1.35540 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.33990 & 1.33710.

Comment: Pair above its 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


USD/JPY Intraday: Downtrend may reverse from here

Our pivot point is at 114.100

Preferable Price Action: Buy position Above pivot with the target at 114.530 and 114.790 in extension.

Alternative Price Action: The Downside breakout of the pivot would call for 113.580 and 113.300.

Comment: Price above its 55MA & 20MA 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: Support at 0.72660

Our pivot point is at 0.72660

Preferable Price Action:  Buy Positions above pivot with targets at 0.73010 & 0.73200 in extension.

Alternative Price Action: Below pivot looks for a further Downside with 0.72340 & 0.72140 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 downside

Our pivot point is at 78.00

Preferable Price Action: Below pivots Sell Oil with 76.40 & 75.50 as targets.

Alternative Price Action: Buy crude Above pivot with targets at 79.60 and 80.30 in extension.

Comment: Crude is below its 55MA & 20MA and MACD in the 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


XAU/USD Intraday: In a consolidation zone

Our pivot point is 1861.90

Preferable Price Action: Further upside to 1876.30 and 1881.90.

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1848.30 and 1843.30.

Comment: MACD in positive territory and price above its 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: Trend on the downside

Our pivot point is 36,060.00

Preferable Price Action: Take Short positions below pivot with targets at 35,850.00 & 35,765.00.

Alternative Price Action: Above 36,060.00 looks for further upside to 36,282.00 & 36,369.00.

Comment: Price below its 55MA & 20MA 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

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