Market Wrap: Stocks, Bonds, Commodities
American major stock indices closed higher on Wednesday as government leaders continued talks for a new pandemic relief package and positive economic data helped the major indexes end the third quarter in positive territory.
The Dow Jones Industrial Average advance 329.04 points (1.20%) to 27,781.7, the S&P 500 rose 27.53 points (0.83%) to 3,363 and the Nasdaq Composite gained 82.26 points (0.74%) to 11,167.51.
Asian equities were poised for a bouncy session on Thursday after U.S. stocks posted a second consecutive quarter of gains and safe-haven assets, including the dollar, were mixed.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.45% to 715.70 levels. Australian index surged 0.98% to 5,872.90. Japanese Nikkei flat to 23,184.93.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index down 0.64% to 3,193.61, Germany’s DAX fell 0.51% to 12,760.73 and France’s CAC lost 0.59% to 4,802.44 and U.K.’s FTSE 100 slipped 0.53% to 5,866.10.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield up 3.22% to 0.699.
Oil prices were little changed in early trade on Thursday after U.S. lawmakers postponed a vote on a $2.2 trillion coronavirus relief package in hopes of reaching a bipartisan deal, while rising infections fueled demand fears.
Spot Brent crude oil rose 0.12% to $42.35 per barrel. US West Texas Intermediate crude down 0.15% to $40.16 a barrel.
The yellow metal traded 0.45% higher to 1898.80 dollars per ounce.
Market Wrap: Forex
The dollar was on the defensive at a one-week low on Thursday, as robust U.S. data and fresh hopes for U.S. fiscal stimulus had investors confident enough about economic recovery prospects to seek out riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.16% to 93.770.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.26% today. This left the pairing trading around $1.17490. GBP/USD up 0.24% to 1.29470.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY rose 0.05% to 105.500 level.
Other commodity related currency higher against U.S dollar, AUD/USD advance 0.47% to 0.71950 and NZD/USD surged 0.51% to 0.66450.
EUR/USD Intraday: Support at 1.17020
Our pivot point is at 1.17020
Preferable Price Action: Take Long positions above level with targets at 1.17600 & 1.17850 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16460 & 1.16200.
Comment: Pair above its 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: Support at 1.28400
Our pivot point is at 1.28400
Preferable Price Action: Long positions above pivot with targets at 1.29050 & 1.29300 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27750 & 1.27490.
Comment: Price above 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
USD/JPY Intraday: Trend downside
Our pivot point is at 105.300
Preferable Price Action: Short position below pivot with the target at 104.800 and 104.550 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.830 and 106.080.
Comment: price below 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: Support level at 0.71350
Our pivot point is at 0.71350
Preferable Price Action: Long positions above pivot with targets at 0.71830 & 0.72080 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70870 & 0.70600 as targets.
Comment: Pair below its 55MA & 20MA and RSI near 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: Break support level
Our pivot point is at 38.55
Preferable Price Action: Sell crude below pivot with targets at 37.20 and 36.50 in extension.
Alternative Price Action: Above pivots buy Oil with 39.85 & 40.55 as targets.
Comment: Crude below Its 20MA & 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 upside
Our pivot point is at 1907.40
Preferable Price Action: Further upside to 1921.20 & 1928.50 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1893.30 and 1885.75.
Comment: MACD in positive territory and price above it’s 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: Bias on the downside
Our pivot point is at 27,690.00
Preferable Price Action: Take sell positions below pivot with targets at 27,270.00 & 27,000.00 in extension.
Alternative Price Action: Above 27,690.00 looks for further upside to 28,100.00 & 28,360.00.
Comment: Price below its 20MA & 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 produced7