Daily Market Outlook, 23 November, 2022

Market Wrap: Stocks, Bonds, Commodities

US stocks rallied on Tuesday, with the S&P 500 closing at its highest level in 2-1/2 months, as a sales forecast by Best Buy dampened concerns high inflation would lead to a dismal holiday shopping season while a bounce in oil prices helped lift the energy shares.

The Dow Jones Industrial Average rose 397.82 points to 34,098.10, the S&P 500 gained 1.36% to 4,003.58 and the Nasdaq Composite added 149.90 points to 11,174.41.

MSCI’s index of Asia-Pacific stocks outside Japan is rose 0.40% to 592.54 levels. The Australian index was higher by 0.70% to 7,231.80. Japanese Nikkei Index closed today.

European stocks were positive on Wednesday, with the Stoxx Europe 50 Index rose 0.19% to 3,937.45, Germany’s DAX gaining 0.05% to 14,429.60, and France’s CAC advance 0.13% to 6,666.10, and U.K.’s FTSE 100 added 0.57% to 7,495.42.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields flat to 3.758.

Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market.

Spot Brent crude oil rose 0.60% to $88.85 per barrel. US West Texas Intermediate crude is up 0.58% to $81.44 a barrel.

The yellow metal gold is down 0.18% to 1,736.75 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar held firm on Wednesday, with investors on tenterhooks before the release of minutes of the Federal Reserve’s latest policy meeting which could offer clues on the outlook for inflation and the pace of interest rate hikes.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which slumped 0.05% to 107.060.

The Euro US Dollar (EUR/USD) is a widely traded pair that is gained 0.05% today. This left the pair trading around $1.03020.

The Japanese yen was negative against the U.S. dollar on Wednesday. Today USD/JPY is advanced 0.25% to the 141.590 level.

Another commodity-related currency negative against the U.S dollar, AUD/USD plunged 0.05% to 0.66440, and NZD/USD rose 0.57% to 0.61740 level.


EUR/USD Intraday: Support at 1.02440

Our pivot point is at 1.03060

Preferable Price Action: Take long positions above pivot level with targets at 1.03490 & 1.03820 in extension.

Alternative Price Action: below pivot looks for a further downside to 1.02640 & 1.02340.

Comment: RSI above 50 levels and Pairs above its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


GBP/USD Intraday: Trend on the upside

Our pivot point is at 1.18950

Preferable Price Action: Buy positions above pivot with targets at 1.19290 & 1.19540 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.18610 & 1.18380.

Comment:  RSI above 50 levels and Pairs above its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


USD/JPY Intraday: Major trend on the upside

Our pivot point is at 141.290

Preferable Price Action: Buy position above pivot with the target at 141.900 and 142.400 in extension.

Alternative Price Action: The downside breakout of the pivot would call for 140.700 and 140.220.

Comment: MACD is positive territory and Pairs above its 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


AUD/USD Intraday: Support level at 0.66090

Our pivot point is at 0.66380

Preferable Price Action: Buy Positions above pivot with targets at 0.66790 & 0.67090 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.66000 & 0.65720 as targets.

Comment: RSI above 50 levels and Pairs above its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


CRUDEOIL Intraday: Support level at 81.38

Our pivot point is at 81.38

Preferable Price Action: Above pivots buy oil with 82.95 & 84.23 as targets.

Alternative Price Action: Sell crude below pivot with targets at 80.02 and 78.96 in extension.

Comment: MACD is in the positive territory and Pairs above 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


XAU/USD Intraday: Resistance at 1742.40

Our pivot point is 1742.40

Preferable Price Action: Further downside to 1728.90 and 1719.40

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1753.32 and 1763.17.

Comment: MACD is positive territory and Pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


Dow Jones Intraday: Trend on the upside

Our pivot point is 34,108.00

Preferable Price Action: Take buy positions above the pivot with targets at 34,277.00 & 34,422.00.

Alternative Price Action: Below 34,108.00 looks for further downside to 33,950.00 & 33,830.00.

Comment: RSI above 50 levels and Pairs above 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced

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