Daily Market Outlook, 01 December, 2021

Market Wrap: Stocks, Bonds, Commodities

Global stock benchmarks and oil prices fell sharply on Tuesday after drugmaker Moderna warned that the existing vaccines are unlikely to be as effective against the new coronavirus variant, spurring investors to pile into safe-haven assets such as government bonds and the yen.

The Dow Jones Industrial Average fell 652.22 points (1.86%) to 34,483.72, the S&P 500 lost 88.26 points (1.90%) to 4,567.01, and the Nasdaq Composite dropped 245.14 points (1.55%) to 15,537.69.

MSCI’s index of Asia-Pacific stocks outside Japan rose 1.19% to 789.19 levels. Australian index fell 0.28% to 7,235.90. Japanese Nikkei Index rose 0.41% to 27,935.62.

European stocks were higher on Wednesday, with the Stoxx Europe 50 Index jumping 1.52% to 4,151.75, Germany’s DAX rose 1.10% to 15,425.40, and France’s CAC advance 1.40% to 6,833.98, and U.K.’s FTSE 100 rose 1.40% to 7,121.61.

Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields advance 3.30% to 1.489.

Oil prices climbed on Tuesday, extending a rebound from last week’s plunge on growing expectations major producers would pause plans to add crude supply in January amid uncertainty over the severity of the Omicron coronavirus variant.

Spot Brent crude oil gained 4.58% to $72.38 per barrel. US West Texas Intermediate crude rose 4.41% to $69.09 a barrel.

The yellow metal gold gained 0.18% to 1779.65 dollars per ounce.

Market Wrap: Forex 

The dollar was down on Wednesday morning in Asia. The safe-haven yen held steady, while the risk-sensitive Australian dollar remained near a one-year low after U.S. Federal Reserve Chairman Jerome Powell signaled quicker asset tapering even as risks from the omicron COVID-19 variant remain.

Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which advanced 0.10% to 96.0880.

The Euro US Dollar (EUR/USD) is a widely traded pair that is fell 0.10% today. This left the pairing trading around $1.13240.

The Japanese yen rose against the U.S. dollar on Wednesday as the stock pushes lower. Today US/JPY is rose 0.30% to 113.470 level.

Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.42% to 0.71520, and NZD/USD rose 0.41% to 0.68490 level.


EUR/USD Intraday: Trend on the upside

Our pivot point is at 1.12790

Preferable Price Action: Take Long positions Above pivot level with targets at 1.13360 & 1.13630 in extension.

Alternative Price Action: Below pivot looks for a further Downside to 1.12290 & 1.12030.

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


GBP/USD Intraday: Resistance at 1.33330

Our pivot point is at 1.33330

Preferable Price Action: Sell positions below pivot with targets at 1.32960 & 1.32830 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.33630 & 1.33790.

Comment: Pair below its 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 produced


USD/JPY Intraday: Trend on the downside

Our pivot point is at 113.760

Preferable Price Action: Sell position Below pivot with the target at 112.730 and 112.300 in extension.

Alternative Price Action: The Upside breakout of the pivot would call for 114.760 and 115.190.

Comment: Price below its 55MA & 20MA 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: Trend on the downside

Our pivot point is at 0.71290

Preferable Price Action:  Sell Positions below pivot with targets at 0.70790 & 0.70560 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.71830 & 0.72030 as targets.

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


CRUDEOIL Intraday: Trend on the downside

Our pivot point is at 70.30

Preferable Price Action: Below pivots Sell Oil with 66.60 & 64.60 as targets.

Alternative Price Action: Buy crude Above pivot with targets at 74.30 and 75.90 in extension.

Comment: Crude is below its 55MA 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: Support at 1786.90

Our pivot point is 1786.90

Preferable Price Action: Further upside to 1806.30 and 1816.90.

Alternative Price Action: If the price gives an downside breakout of a pivot, then the price extends to 1766.30 and 1756.30.

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

Our pivot point is 34,930.00

Preferable Price Action: Take Short positions below pivot with targets at 34,310.00 & 34,060.00.

Alternative Price Action: Above 35,490.00 looks for further Upside to 35,500.00 & 35,760.00.

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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