Market Wrap: Stocks, Bonds, Commodities
The S&P 500 climbed to a record high close on Wednesday and the Nasdaq Composite Index dipped as investors weighed upbeat vaccine developments and a potential coronavirus fiscal package against a bleak private jobs report.
The Dow Jones Industrial Average rose 0.20% to end at 29,883.79 points, while the S&P 500 gained 0.18% at 3,669.01. The Nasdaq Composite slipped 0.05% to 12,349.37, dragged by a 2.7% slide in Tesla Inc.
Asian shares were mixed on Thursday after a choppy day of Wall Street trade, thanks in part to a disappointing U.S. jobs report and speculation regarding stimulus in USA.
MSCI’s index of Asia-Pacific stocks outside Japan jumped 0.68% to 808.40 levels. Australian index advances 0.38% to 6,615.30. Japanese Nikkei advance flat to 26,809.37.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index fell 0.38% to 3,508.04, Germany’s DAX down 0.49% to 13,247.65 and France’s CAC slipped 0.46% to 5,557.24 and U.K.’s FTSE 100 lose 0.34% to 6,441.15.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.55% to 0.920.
Oil prices fell on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic.
Spot Brent crude Oil lose 0.91% to $47.81 per barrel. US West Texas Intermediate crude decline 1.04% to $44.79 a barrel.
The yellow metal traded 0.49% higher to 1836.80 dollar per ounce.
Market Wrap: Forex
The dollar licked wounds near a 2-year low against a basket of major currencies on Thursday as investors wagered that more economic stimulus from Washington and the expected start of COVID-19 vaccinations would support riskier assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 91.062.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.10% today. This left the pairing trading around $1.21030.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY fell 0.08% to 104.310 level.
Other commodity related currency advance against U.S dollar, AUD/USD flat to 0.74130 and NZD/USD slipped 0.22% to 0.70540.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.21000
Preferable Price Action: Take Long positions above pivot level with targets at 1.21560 & 1.21820 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20470 & 1.20190.
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: Break resistance level
Our pivot point is at 1.33700
Preferable Price Action: Buy positions above pivot with targets at 1.34160 & 1.34440 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33250& 1.33250.
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 104.380
Our pivot point is at 104.370
Preferable Price Action: Buy position above pivot with the target at 104.590 and 104.700 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.170 and 104.040.
Comment: price above its 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 0.74000
Our pivot point is at 0.74000
Preferable Price Action: Buy Positions above pivot with targets at 0.74245 & 0.74350 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.73740 & 0.73640 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 44.80
Our pivot point is at 44.80
Preferable Price Action: Below pivots sell Oil with 44.10 & 43.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 45.40 and 45.80 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: Strong on the upside
Our pivot point is at 1825.00
Preferable Price Action: Further upside to 1844.00 & 1854.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1804.00 and 1793.30.
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: Resistance at 29,927.00
Our pivot point is at 29,927.00
Preferable Price Action: Take sell positions below pivot with targets at 29,777.00 & 29,700.00 in extension.
Alternative Price Action: above 29,829.05 looks for further upside to 30,052.00 & 30,110.00
Comment: Price below its 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 produced7