Market Wrap: Stocks, Bonds, Commodities
Stocks on Wall Street hit record levels on Thursday as investors bet a Democrat-controlled Congress will deliver more stimulus spending to help the U.S. economy overcome a steep pandemic-induced downturn.
The Dow, S&P 500 and Nasdaq all set new highs amid growing calls for President Donald Trump’s removal, one day after Trump supporters stormed the U.S. Capitol in a harrowing assault on American democracy.
Asian shares rose to record highs on Friday, with Japanese Nikkei hitting a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.75% to 880.30 levels. Australian index jumped 0.68% to 6,757.90. Japanese Nikkei advance rose 2.36% to 28,139.10.
European stocks were advanced on Thursday, with the Stoxx Europe 50 Index advance 0.38% to 3,636.20, Germany’s DAX gained 0.71% to 14,061.30 and France’s CAC up 0.19% to 5,680.44 and U.K.’s FTSE 100 flat to 6,854.97.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 1.12% to 1.083.
Oil prices held near 11-month highs on Friday and were on track for a strong weekly gain as Saudi Arabia’s pledge to cut output continued to buoy market sentiment.
Spot Brent crude Oil gained 0.77% to $54.79 per barrel. US West Texas Intermediate crude advance 0.65% to $51.16 a barrel.
The yellow metal traded 1.31% higher to 1888.33 dollar per ounce.
Market Wrap: Forex
The dollar languished near its lowest level in nearly three years on Thursday after Democrats won control of the U.S. Senate, clearing the way for a larger fiscal stimulus under President-elect Joe Biden.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.35% to 89.817.
The Euro US Dollar (EUR/USD) widely traded pair down 0.51% today. This left the pairing trading around $1.22640.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.57% to 103.620 level.
Other commodity related currency declined against U.S dollar, AUD/USD lost 0.74% to 0.77430 and NZD/USD fell 0.54% to 0.72500.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.22780
Preferable Price Action: Take Short positions below pivot level with targets at 1.22390 & 1.22100 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.23160 & 1.23450.
Comment: Pair below 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.35520
Preferable Price Action: Buy positions above pivot with targets at 1.36000 & 1.36300 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.35050 & 1.34750.
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: Strong trend on the upside
Our pivot point is at 103.750
Preferable Price Action: Buy position above pivot with the target at 104.150 and 104.400 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.350 and 103.100.
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 0.77570
Our pivot point is at 0.77570
Preferable Price Action: Buy Positions above pivot with targets at 0.78100 & 0.78400 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77000 & 0.76700 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 50.70
Preferable Price Action: Above pivots buy Oil with 51.80 & 52.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 49.60 and 49.00 in extension.
Comment: Crude above 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
XAU/USD Intraday: Trend on the downside
Our pivot point is at 1917.00
Preferable Price Action: Further downside to 1900.00 & 1890.00 level.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1933.70 and 1943.70.
Comment: MACD in negative 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: Major trend upside
Our pivot point is at 31,100.00
Preferable Price Action: Take buy positions above pivot with targets at 31,430.00 & 31,630.00 in extension.
Alternative Price Action: Below 31,100.00 looks for further downside to 30,750.00 & 30,550.00.
Comment: Price above its 20MA & 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