Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rallied on Tuesday and the Dow breached the 30,000 level for the first time, as investors anticipated a 2021 economic recovery on coronavirus vaccine progress and the formal clearance for President-elect Joe Biden’s transition to the White House.
The Dow Jones Industrial Average rose 454.97 points (1.54%) to 30,046.24, the S&P 500 gained 57.82 points (1.62%) to 3,635.41 and the Nasdaq Composite added 156.15 points (1.31%) to 12,036.79.
Asian stocks made early gains on Wednesday, following a world rally overnight that saw the Dow Jones benchmark crack 30,000 for the first time as investors cheered a dramatically improved global outlook.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.58% to 801.200 levels. Australian index advances 0.59% to 6,683.30. Japanese Nikkei climbed 0.50% to 26,296.86.
European stocks were lower on Monday, with the Stoxx Europe 50 Index rose 0.10% to 3,510.20, Germany’s DAX advance 0.08% to 13,302.30 and France’s CAC gained 0.22% to 5,570.88 and U.K.’s FTSE 100 up 0.10% to 6,439.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.05% to 0.886.
U.S. oil edged lower on Wednesday after an industry report showed crude stockpiles in the United States rose against expectations, tempering a rally driven by news that another vaccine against COVID-19 had proved effective in trials.
Spot Brent crude Oil advance 1.42% to $48.46 per barrel. US West Texas Intermediate crude gained 1.31% to $45.50 a barrel.
The yellow metal traded 0.35% higher to 1812.20 dollar per ounce.
Market Wrap: Forex
The dollar nursed losses on Wednesday as progress in developing a novel coronavirus vaccine and expectations for a fiscal boost from a new U.S. government triggered a shift of funds from the greenback to riskier assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.24% to 91.963.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.25% today. This left the pairing trading around $1.19250.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY down 0.05% to 104.370 level.
Other commodity related currency flat against U.S dollar, AUD/USD flat to 0.73580 and NZD/USD flat to 0.69770.
EUR/USD Intraday: Support at 1.19060
Our pivot point is at 1.19060
Preferable Price Action: Take Long positions above pivot level with targets at 1.19430 & 1.19655 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18680 & 1.18490.
Comment: Pair above its 55MA & 20MA and RSI at overbought 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 on the upside
Our pivot point is at 1.33480
Preferable Price Action: Long positions above pivot with targets at 1.34040& 1.34350 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33055 & 1.32774.
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: Resistance at 104.560
Our pivot point is at 104.560
Preferable Price Action: Short position above pivot with the target at 104.250 and 104.050 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.790 and 104.950.
Comment: price below its 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 at 0.73370
Our pivot point is at 0.73370
Preferable Price Action: Long positions above pivot with targets at 0.73770 & 0.74000 in extension.
Alternative Price Action: Belove pivot looks for further downside with 0.73085 & 0.72860 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: Trend Upside
Our pivot point is at 44.80
Preferable Price Action: Above pivots buy Oil with 45.96 & 46.59 as targets.
Alternative Price Action: Sell crude below pivot with targets at 43.74 and 43.97 in extension.
Comment: Crude above 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: Support at 1805.70
Our pivot point is at 1805.70
Preferable Price Action: Further downside to 1788.20 & 1774.40 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1823.00 and 1835.90.
Comment: MACD in negative 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: Trend on the upside
Our pivot point is at 29,988.00
Preferable Price Action: Take buy positions above pivot with targets at 30,230.60 & 30,362.00 in extension.
Alternative Price Action: Below 29,988.00 looks for further downside to 29,697.00 & 29,528.00.
Comment: Price 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 produced7