Market Wrap: Stocks, Bonds, Commodities
Shares on Wall Street closed sharply lower on Monday, sliding from all-time peaks on the first trading day of the year, as risk appetite ebbed amid upcoming runoff elections in Georgia and the persistent surge in coronavirus cases.
The Dow Jones Industrial Average fell 382.59 points (1.25%) to 30,223.89, the S&P 500 lost 55.42 points (1.48%) to 3,700.65 and the Nasdaq Composite dropped 189.84 points (1.47%) to 12,698.45.
Asian shares edged lower on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden’s economic policies.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.83% to 859.30 levels. Australian index flat to 6,681.90. Japanese Nikkei advance down 0.37% to 27,158.63.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index down 0.73% to 3,538.42, Germany’s DAX fell 0.66% to 13,638.65 and France’s CAC fell 0.64% to 5,554.13 and U.K.’s FTSE 100 rose 0.05% to 6,572.91.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 2.13% to 0.937.
Oil prices slipped from multi-month highs to end more than 1% lower on the first trading day of the year after OPEC+ failed to decide on Monday whether to increase output in February and agreed to meet again on Tuesday.
Spot Brent crude Oil higher 1.61% to $51.89 per barrel. US West Texas Intermediate crude gained 1.62% to $48.39 a barrel.
The yellow metal traded 0.25% higher to 1947.30 dollar per ounce.
Market Wrap: Forex
The dollar fell against major peers on Tuesday as China set the official yuan exchange rate at the strongest since abandoning its peg in 2005, which helped support demand for other units.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.18% to 89.685.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.20% today. This left the pairing trading around $1.22720.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.20% to 102.890 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.54% to 0.77060 and NZD/USD rose 0.46% to 0.72050.
EUR/USD Intraday: Support at 1.22600
Our pivot point is at 1.22600
Preferable Price Action: Take Long positions above pivot level with targets at 1.22880 & 1.23080 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.22320 & 1.22100.
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
GBP/USD Intraday: Trend on the downside
Our pivot point is at 1.35920
Preferable Price Action: Sell positions below pivot with targets at 1.35250 & 1.34850 in extension.
Alternative Price Action: Price Above pivot would call for further upside to 1.36570 & 1.36940.
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 on the downside
Our pivot point is at 103.070
Preferable Price Action: Sell position below pivot with the target at 102.800 and 102.640 in extension.
Alternative Price Action: The upside breakout of pivot would call for 103.350 and 103.500.
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: Support at 0.76900
Our pivot point is at 0.76900
Preferable Price Action: Buy Positions above pivot with targets at 0.77400 & 0.77710 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76400 & 0.76080 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: Resistance at 48.15
Our pivot point is at 48.15
Preferable Price Action: Below pivots sell Oil with 47.20 & 46.60 as targets.
Alternative Price Action: Buy crude above pivot with targets at 49.10 and 49.70 in extension.
Comment: Crude above 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: Strong trend on the upside
Our pivot point is at 1937.00
Preferable Price Action: Further upside to 1952.00 & 1961.80 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1922.10 and 1912.00.
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: Trend upside
Our pivot point is at 30,150.00
Preferable Price Action: Take buy positions above pivot with targets at 30,400.00 & 30,530.00 in extension.
Alternative Price Action: Below 30,150.00 looks for further downside to 29,900.00 & 29,770.00.
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