Market Wrap: Stocks, Bonds, Commodities
The S&P 500 lost ground on Tuesday as concerns over a new variant of the coronavirus and disappointing economic data stole the thunder from Washington’s passage of a long-awaited pandemic relief bill.
The Dow Jones Industrial Average fell 200.94 points (0.67%) to 30,015.51, the S&P 500 lost 7.66 points (0.21%) to 3,687.26 and the Nasdaq Composite added 65.40 points (0.51%) to 12,807.92.
Asian shares were set for choppy trade on Wednesday as the investor focus swung between concerns about a new faster-spreading variant of the coronavirus and hopes that more U.S. fiscal aid would propel an economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.65% to 816.56 levels. Australian index gained 0.66% to 6,642.60. Japanese Nikkei advance up 0.33% to 26,524.79.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index rose 0.52% to 3,515.65, Germany’s DAX advance 0.54% to 13,491.05 and France’s CAC up 0.49% to 5,494.42 and U.K.’s FTSE 100 slipped 0.14% to 6,444.35.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 0.37% to 0.921.
Oil dropped towards $50 a barrel on Tuesday, adding to losses from the previous session, as a mutant variant of the coronavirus in Britain revived concerns over demand recovery.
Spot Brent crude Oil fell 0.34% to $49.91 per barrel. US West Texas Intermediate crude lost 0.28% to $46.89 a barrel.
The yellow metal traded 0.31% higher to 1871.60 dollar per ounce.
Market Wrap: Forex
The dollar held gains against major peers in holiday-thinned trading on Wednesday as caution about a fast-spreading coronavirus variant in the UK stoked demand for the safest assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.28% to 90.297.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.28% today. This left the pairing trading around $1.2194.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY slipped 0.20% to 103.410 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.60% to 0.75670 and NZD/USD rose 0.11% to 0.70840.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.22020
Preferable Price Action: Take Short positions below pivot level with targets at 1.21640 & 1.21440 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.22400 & 1.22600.
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: Bias on the upside
Our pivot point is at 1.33800
Preferable Price Action: Buy positions above pivot with targets at 1.34600 & 1.35000 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.33000 & 1.32600.
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 103.370
Our pivot point is at 103.370
Preferable Price Action: Buy position above pivot with the target at 103.650 and 103.850 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.100 and 102.900.
Comment: price 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.75310
Preferable Price Action: Buy Positions above pivot with targets at 0.75750 & 0.75950 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.74880 & 0.74680 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 46.25
Our pivot point is at 46.25
Preferable Price Action: Above pivots buy Oil with 47.00 & 47.60 as targets.
Alternative Price Action: Sell crude below pivot with targets at 45.55 and 44.94 in extension.
Comment: Crude above 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
XAU/USD Intraday: Support at 1862.50
Our pivot point is at 1862.50
Preferable Price Action: Further upside to 1873.00 & 1880.00 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1852.40 and 1845.20.
Comment: MACD in positive territory and price above its 20MA.
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: In consolidation zone
Our pivot point is at 29,900.00
Preferable Price Action: Take buy positions above pivot with targets at 30,150.00 & 30,300.00 in extension.
Alternative Price Action: Below 29,900.00 looks for further downside to 29,650.00 & 29,500.00.
Comment: Price 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 produced7