Daily Market Outlook, 02 December, 2021

Market Wrap: Stocks, Bonds, Commodities

Wall Street’s major averages fell more than 1% on Wednesday after a morning rally faded as investor angst about the latest coronavirus variant soared with the first U.S. case confirmation while the market also digested US Fed’s comments on inflation.

The Dow Jones Industrial Average fell 461.68 points (1.34%) to 34,022.04, the S&P 500 lost 53.96 points (1.18%) to 4,513.04 and the Nasdaq Composite dropped 283.64 points (1.83%) to 15,254.05.

MSCI’s index of Asia-Pacific stocks outside Japan rose 0.77% to 794.13 levels. Australian index fell 0.15% to 7,225.20. Japanese Nikkei Index down 0.65% to 27,753.27.

European stocks were lower on Thursday, with the Stoxx Europe 50 Index plunging 1.42% to 4,119.25, Germany’s DAX lost 1.08% to 15,306.50, and France’s CAC fell 1.08% to 6,809.20, and U.K.’s FTSE 100 slipped 0.66% to 7,121.30.

Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields advance 0.72% to 1.444.

A gauge of global equity markets retreated from early gains on Wednesday as concerns about the first U.S. case of the Omicron variant and sooner-than-expected interest rate hikes next year by the Federal Reserve turned investor sentiment bearish. U.S. crude oil futures retreated after an American official said the country was continuing to consider tools to lower energy prices, and as government data pointed to weaker gasoline demand.

Spot Brent crude oil gained 1.38% to $69.82 per barrel. US West Texas Intermediate crude rose 1.37% to $66.47 a barrel.

The yellow metal gold lowers 0.71% to 1771.70 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar recovered from a loss on Wednesday after reports the Omicron coronavirus variant is spreading and oil prices turned down, hurting commodity currencies.

Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which advanced 0.05% to 96.050.

The Euro US Dollar (EUR/USD) is a widely traded pair that is rose 0.05% today. This left the pairing trading around $1.13230.

The Japanese yen rose against the U.S. dollar on Thursday as the stock pushes lower. Today US/JPY is rose 0.40% to 113.190 level.

Another commodity-related currency higher against the U.S dollar, AUD/USD gained 0.11% to 0.71110, and NZD/USD rose 0.21% to 0.68180 level.


EUR/USD Intraday: Support at 1.13130

Our pivot point is at 1.13130

Preferable Price Action: Take Long positions Above pivot level with targets at 1.13590 & 1.13860 in extension.

Alternative Price Action: Below pivot looks for a further Downside to 1.12660 & 1.12390.

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 1.33030

Preferable Price Action: Sell positions below pivot with targets at 1.32630 & 1.32360 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.33560 & 1.33860.

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: In a consolidation zone

Our pivot point is at 113.430

Preferable Price Action: Sell position Below pivot with the target at 112.630 and 112.230 in extension.

Alternative Price Action: The Upside breakout of the pivot would call for 114.290 and 114.760.

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 0.71360

Preferable Price Action:  Sell Positions below pivot with targets at 0.70790 & 0.70530 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.71930 & 0.72230 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: Price may bounce back from here

Our pivot point is at 65.60

Preferable Price Action: Above pivots Buy Oil with 69.90 & 72.60 as targets.

Alternative Price Action: Sell crude Below pivot with targets at 61.60 and 59.30 in extension.

Comment: Crude is above its 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: Resistance at 1788.30

Our pivot point is 1788.30

Preferable Price Action: Further downside to 1767.30 and 1756.30.

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1808.30 and 1818.90.

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: Trend on the downside

Our pivot point is 34,830.00

Preferable Price Action: Take Short positions below pivot with targets at 34,060.00 & 33,690.00.

Alternative Price Action: Above 34,830.00 looks for further Upside to 35,630.00 & 35,960.00.

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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