Daily Market Outlook, 01 December, 2022

Market Wrap: Stocks, Bonds, Commodities

Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell said the central bank might scale back the pace of its interest rate hikes as soon as December.

The Dow Jones Industrial Average rose 737.24 points to 34,589.77, the S&P 500 gain 122.48% to 4,080.11 and the Nasdaq Composite add 484.22 points to 11,468.00.

MSCI’s index of Asia-Pacific stocks outside Japan is rose 1.06% to 628.22 levels. The Australian index was higher by 0.96% to 7,354.40. Japanese Nikkei Index lose 0.92% today.

European stocks were positive on Thursday, with the Stoxx Europe 50 Index rose 0.54% to 3,985.65, Germany’s DAX gain 0.59% to 14,482.65, and France’s CAC advance 0.17% to 6,749.87, and U.K.’s FTSE 100 add 0.20% to 7,588.67.

Benchmark 10-year U.S. Treasury fell as demand for safe assets ascend again, today 10-year bond yields are negative 1.79% to 3.635.

Oil prices dipped in Asia trade on Thursday as uncertainty lingered ahead of Sunday’s OPEC+ meeting, though easing COVID curbs at the world’s top crude importer China capped price declines.

Spot Brent crude oil rose 0.36% to $87.28 per barrel. US West Texas Intermediate crude is up 0.45% to $80.91 a barrel.

The yellow metal gold is advance 1.82% to 1,791.90 dollars per ounce.

Market Wrap: Forex 

The U.S. dollar slumped in early European trade Thursday after Federal Reserve chair Jerome Powell pointed to smaller rate hikes ahead, boosting risk appetite to the detriment of this safe haven.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which slipped 0.42% to 105.440.

The Euro US Dollar (EUR/USD) is a widely traded pair that is up 0.38% today. This left the pair trading around $1.04440.

The Japanese yen was negative against the U.S. dollar on Thursday. Today USD/JPY is drop 1.26% to the 136.300 level.

Another commodity-related currency positive against the U.S dollar, AUD/USD rose 0.43% to 0.68150, and NZD/USD gain 0.76% to 0.63410 level.


EUR/USD Intraday: Trend on the upside

Our pivot point is at 1.04400

Preferable Price Action: Take long positions above pivot level with targets at 1.04870 & 1.05190 in extension.

Alternative Price Action: Below pivot looks for a further downside to 1.04020 & 1.03760.

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 1.20980

Preferable Price Action: Buy positions above pivot with targets at 1.21390 & 1.21760 in extension.

Alternative Price Action: The price below pivot would call for further downside to 1.20600 & 1.20320.

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: Trend on the downside

Our pivot point is at 136.800

Preferable Price Action: Sell position below pivot with the target at 135.660 and 134.960 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 137.730 and 138.560.

Comment: MACD is negative 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


AUD/USD Intraday: Major trend on the upside

Our pivot point is at 0.68150

Preferable Price Action: Buy Positions above pivot with targets at 0.68620 & 0.68940 in extension.

Alternative Price Action: Below pivot looks for a further downside with 0.67760 & 0.67450 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: In a consolidation zone

Our pivot point is at 80.90

Preferable Price Action: Below pivots sell oil with 79.64 & 78.62 as targets.

Alternative Price Action: Buy crude above pivot with targets at 82.12 and 83.13 in extension.

Comment: MACD is in the flat territory and Pairs below 20MA.

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: Trend on the upside

Our pivot point is 1777.20

Preferable Price Action: Further upside to 1788.30 and 1795.90

Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1768.50 and 1761.90.

Comment: MACD is positive territory 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


Dow Jones Intraday: Major trend on the upside

Our pivot point is 34,477.00

Preferable Price Action: Take buy positions above the pivot with targets at 34,691.00 & 34,843.00.

Alternative Price Action: Below 34,477.00 looks for further downside to 34,292.00 & 34,149.00.

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

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