Market Wrap: Stocks, Bonds, Commodities
American major stock indices ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted traders’ optimism.
The Dow Jones Industrial Average advance 327.70 points (1.19%) to 27,993.40, the S&P 500 rose 42.57 points (1.27%) to 3,383.54 and the Nasdaq Composite gained 203.11 points (1.87%) to 11,056.65.
Asian major indices are higher on Tuesday as traders shifted focus to better than expected economic data and central bank meetings although positive developments around potential COVID-19 vaccines.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.21% to 721.30 levels. Australian index slipped 0.10% to 5,894.40. Japanese Nikkei fell 0.50% to 23,441.20.
European stocks were mixed on Monday, with the Stoxx Europe 50 Index rose 0.05% to 3,316.80, Germany’s DAX lost 0.07% to 13,193.96 and France’s CAC gained 0.35% to 5,021.88 and U.K.’s FTSE 100 up 0.48% to 6,032.10.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 0.25% to 0.671.
Oil prices inched lower on Tuesday as a bleaker outlook for global fuel demand prompted fresh selling, but short-covering ahead of a meeting later this week of OPEC and its allies, known as OPEC+, limited losses.
Spot Brent crude oil down 0.05% to $39.60 per barrel. US West Texas Intermediate crude up 0.10% to $37.29 a barrel.
The yellow metal traded 0.68% higher to 1967.20 dollars per ounce.
Market Wrap: Forex
The dollar dipped against riskier currencies on Tuesday as hopes for a COVID-19 vaccine and big corporate deals improved investor appetite for assets such as the yuan and the euro.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.25% to 92.847.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.25% today. This left the pairing trading around $1.18980.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY down 0.06% to 105.660 level.
Other commodity-related currency higher against U.S dollar, AUD/USD rose 0.58% to 0.73300 and NZD/USD up 0.41% to 0.67250.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.18700
Preferable Price Action: Take Long positions above level with targets at 1.19135 & 1.19382 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18248 & 1.17987.
Comment: Pair above its 20MA & 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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.28340
Preferable Price Action: Long positions above pivot with targets at 1.28908 & 1.29203 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27796 & 1.27522.
Comment: Price above 20MA & 55MA 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: Minor trend downside
Our pivot point is at 105.840
Preferable Price Action: Short position below pivot with the target at 105.546 and 105.345 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.130 and 106.322.
Comment: price below 55MA 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
AUD/USD Intraday: Break resistance level
Our pivot point is at 0.73060
Preferable Price Action: Long positions above pivot with targets at 0.73474 & 0.73730 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72658 & .0.72381 as targets.
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
CRUDEOIL Intraday: Support at 37.30
Our pivot point is at 37.30
Preferable Price Action: Buy crude above pivot with targets at 37.95 and 38.30 in extension.
Alternative Price Action: Below pivots sell Oil with 36.67 & 36.30 as targets..
Comment: Crude above Its 55MA 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
XAU/USD Intraday: Trend on the upside
Our pivot point is at 1958.55
Preferable Price Action: Further upside to 1970.70 & 1977.05 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1946.75 and 1939.77.
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: Support at 27960.00
Our pivot point is at 27960.00
Preferable Price Action: Take buy positions above pivot with targets at 28220.00 & 28350.00 in extension.
Alternative Price Action: Below 27960.00 looks for further downside to 27700.00 & 27560.00.
Comment: Price 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 produced7