Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed lower on Wednesday, retreating from record levels as investors grew discouraged over the halting progress of economic stimulus talks, while a drop in Facebook shares provided an additional drag.
The Dow Jones Industrial Average fell 105.07 points (0.35%) to 30,068.81, the S&P 500 lost 29.43 points (0.79%) to 3,672.82 and the Nasdaq Composite dropped 243.82 points (1.94%) to 12,338.95.
Asian markets looked set to slide Thursday as investors tracked negotiations with significant economic implications in the U.S. and Europe.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.56% to 814.65 levels. Australian index lost 0.67% to 6,683.00. Japanese Nikkei advance down 0.23% to 26,756.24.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gained 0.16% to 3,534.25, Germany’s DAX up 0.11% to 13,354.15 and France’s CAC advance 0.25% to 5,560.59 and U.K.’s FTSE 100 rose 0.46% to 6,594.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.28% to 0.920.
Oil prices settled little changed on Wednesday as investors weighed an unexpected jump in U.S. crude stockpiles against optimism that a fast rollout of a coronavirus vaccine would fuel a recovery in global oil demand.
Spot Brent crude Oil rose 0.10% to $48.91 per barrel. US West Texas Intermediate crude up 0.20% to $45.61 a barrel.
The yellow metal traded 0.23% higher to 1838.90 dollar per ounce.
Market Wrap: Forex
The dollar weakened in early European trade Thursday, with growing confidence surrounding U.S. fiscal stimulus and the vaccine rollout prompting traders to seek out riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.05% to 91.050.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.12% today. This left the pairing trading around $1.20970.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.25% to 104.470 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.30% to 0.74670 and NZD/USD rose 0.20% to 0.70330.
EUR/USD Intraday: Break support level
Our pivot point is at 1.21090
Preferable Price Action: Take Short positions below pivot level with targets at 1.20700 & 1.20460 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21490 & 1.21740.
Comment: Pair below its 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
GBP/USD Intraday: Resistance at 1.33930
Our pivot point is at 1.33930
Preferable Price Action: Sell positions below pivot with targets at 1.33250 & 1.32950 in extension.
Alternative Price Action: Price Above pivot would call for further upside to 1.34560 & 1.34850.
Comment: Price below 55MA & 20MA 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
USD/JPY Intraday: Trend upside
Our pivot point is at 104.370
Preferable Price Action: Buy position above pivot with the target at 104.600 and 104.750 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.150 and 104.000.
Comment: price above its 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
AUD/USD Intraday: Support at 0.74490
Our pivot point is at 0.74490
Preferable Price Action: Buy Positions above pivot with targets at 0.74730 & 0.74900 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.74250 & 0.74070 as targets.
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
CRUDEOIL Intraday: Support at 45.50
Our pivot point is at 45.50
Preferable Price Action: Above pivots buy Oil with 46.00 & 46.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 45.00 and 44.70 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: Trend downside
Our pivot point is at 1844.70
Preferable Price Action: Further downside to 1831.60 & 1825.00 level.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1857.60 and 1864.00.
Comment: MACD in positive 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: Resistance at 30,110
Our pivot point is at 30,110.00
Preferable Price Action: Take sell positions below pivot with targets at 30,000.00 & 29,940.00 in extension.
Alternative Price Action: Above 30,110.00 looks for further upside to 30,220.00 & 30,280.00.
Comment: Price below its 20MA 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