Market Wrap: Stocks, Bonds, Commodities
The Nasdaq closed 1.4% lower and the S&P dipped slightly on Tuesday as investors sold off technology stocks that benefited from virus lockdowns, favoring sectors that have suffered most during the pandemic instead on hopes a COVID-19 vaccine will turn the economy around.
The Dow Jones Industrial Average rose 262.95 points (0.90%) to 29,420.92, the S&P 500 lost 4.97 points (0.14%) to 3,545.53 and the Nasdaq Composite dropped 159.93 points to 11,553.86.
Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region’s heavily trade-dependent markets.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index advance 0.14% to 3,449.20, Germany’s DAX rose 0.38% to 13,211.35 and France’s CAC gained 0.35% to 5,438.62 and U.K.’s FTSE 100 up 0.28% to 6,313.60.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.29% to 0.960.
Oil ended nearly 3% higher on Tuesday as hopes that a COVID-19 vaccine is on the horizon outweighed worries about a drop in fuel demand from new lockdowns to contain the virus.
Spot Brent crude Oil advance 2.41% to $44.66 per barrel. US West Texas Intermediate crude rose 2.49% to $42.38 a barrel.
The yellow metal traded 0.10% lower to 1877.10 dollar per ounce.
Market Wrap: Forex
The dollar fell on Wednesday as optimism about a potential coronavirus vaccine was offset by worries about how the drug will be delivered and by a surge of new infections in the United States.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.14% to 92.870.
The Euro US Dollar (EUR/USD) widely traded pair down 0.18% today. This left the pairing trading around $1.17920.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY rose 0.17% to 105.440 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.10% to 0.72880 and NZD/USD advance 0.70% to 0.68760.
EUR/USD Intraday: Support level at 1.18100
Our pivot point is at 1.18100
Preferable Price Action: Take Long positions above pivot level with targets at 1.18440 & 1.18700 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17760 & 1.17510.
Comment: Pair above its 55MA & 20MA 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
GBP/USD Intraday: Strong trend upside
Our pivot point is at 1.32540
Preferable Price Action: Long positions above pivot with targets at 1.33060 & 1.33360 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.32000 & 1.
Comment: Price above 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
USD/JPY Intraday: Support at 105.100
Our pivot point is at 105.100
Preferable Price Action: Long position above pivot with the target at 105.650 and 105.950 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.550 and 104.250.
Comment: price above its 55MA & 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
AUD/USD Intraday: Major Support at 0.72740
Our pivot point is at 0.72740
Preferable Price Action: Long positions above pivot with targets at 0.73180 & 0.73470 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72280 & 0.71980 as targets.
Comment: Pair above its 55MA 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: Trend on the upside
Our pivot point is at 41.75
Preferable Price Action: Buy crude above pivot with targets at 43.20 and 44.00 in extension.
Alternative Price Action: Below pivots sell Oil with 40.30 & 39.50 as targets.
Comment: Crude above Its 55MA & 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
XAU/USD Intraday: Resistance at 1892.50
Our pivot point is at 1892.50
Preferable Price Action: Further downside to 1866.80 & 1854.80 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1917.00 and 1929.40.
Comment: MACD in negative territory and price below 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: Bias on the upside
Our pivot point is at 29,370.00
Preferable Price Action: Take buy positions above pivot with targets at 29,700.00 & 29,950.00 in extension.
Alternative Price Action: Below 29,370.00 looks for further downside to 29,040.00 & 28,780.00.
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