Market Wrap: Stocks, Bonds, Commodities
American major stock indices surged on Wednesday, pushing the S&P 500 and Nasdaq to its record closing high, as better than expected technology stock earning and hope of corona virus vaccine.
The Dow Jones Industrial Average rose 83.48 points (0.30%) to 28,331.92, the S&P 500 gained 35.11 points (1.02%) to 3,478.73 and the Nasdaq Composite advance 198.59 points (1.73%) to 11,665.06.
Asian index is on positive territory on Thursday after wall street records closing on upbeat economic data, while the dollar eased a day before the US Federal Reserve possibly sets a new course on inflation.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.12% to 734.20 levels. Australian index advances 0.16% to 6,126.20. Japanese Nikkei fell 0.35% to 23,208.86.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index rose 1.07% to 3,368.55, Germany’s DAX gained 1.08% to 13,210.00 and France’s CAC up 1.08% to 5,061.83 and U.K.’s FTSE 100 advance 0.82% to 6,155.70.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield surged 3.03% to 0.666.
Oil prices were mixed in early trade on Thursday even as oil rigs and refineries shut ahead of a massive storm in the Gulf of Mexico racing towards Texas and Louisiana, with slim worries about the impact on supply as oil stockpiles remain high.
Spot Brent crude oil fell 0.25% to $46.06 per barrel. US West Texas Intermediate crude down 0.40% to $43.24 a barrel.
The yellow metal traded 0.30% lower to 1940.20 dollars per ounce.
Market Wrap: Forex
The dollar hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation and today Jackson hall summit take place in that if Powell gives less dovish outlook than expected then fall in US dollar value are expected.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.12% to 92.875.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.10% today. This left the pairing trading around $1.18370.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY gained 0.05% to 106.000 level.
Other commodity-related currency gained against U.S dollar, AUD/USD rose 0.15% to 0.71380 and NZD/USD advancing 0.12% to 0.66270.
EUR/USD Intraday: Support at 1.18160
Our pivot point is at 1.18160
Preferable Price Action: Take Long positions above level with targets at 1.18651 & 1.18904 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17646 & 1.17393.
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: Trend upside
Our pivot point is at 1.31750
Preferable Price Action: Long positions above pivot with targets at 1.32357 & 1.32600 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.31133 & 1.30879.
Comment: Price above 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
USD/JPY Intraday: Trend on the downside
Our pivot point is at 106.180
Preferable Price Action: Short position above pivot with the target at 105.850 and 105.666 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.503 and 106.693.
Comment: price below 20MA & 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.72170
Preferable Price Action: Long positions above pivot with targets at 0.72580 & 0.72780 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71753 & 0.71547 as targets.
Comment: Pair above its 55MA 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 upside
Our pivot point is at 43.00
Preferable Price Action: Buy crude above pivot with targets at 43.60 and 43.90 in extension.
Alternative Price Action: Below pivots sell Oil with 42.38 & 42.09 as targets.
Comment: Crude above Its 55MA & 20MA and MACD in posistive 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 1932
Our pivot point is at 1932.35
Preferable Price Action: Further upside to 1948.39 & 1958.33 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1915.07 and 1904.54.
Comment: RSI above 50 levels 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: Major trend upside
Our pivot point is at 28160.80
Preferable Price Action: Take buy positions above pivot with targets at 28387.34 & 28513.20 in extension.
Alternative Price Action: Below 28160.80 looks for further downside to 27936.66 & 27801.90.
Comment: Price above its 20MA & 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 produced7