Market Wrap: Stocks, Bonds, Commodities
The Dow and S&P 500 ended modestly lower on Monday, dragged down by losses in blue-chip technology stalwarts Intel and IBM following their quarterly results, as hopes for a full economic reopening in the coming months waned.
The Dow Jones Industrial Average fell 179.03 points (0.57%) to 30,996.98, the S&P 500 lost 11.6 points (0.30%) to 3,841.47 and the Nasdaq Composite added 12.15 points (0.09%) to 13,543.06.
Asian stocks dipped on Tuesday, retreating from record highs as lingering concerns about potential roadblocks to the Biden administration’s $1.9 trillion stimulus weighed on sentiment, dragging U.S. Treasury yields to three-weeks lows.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.93% to 917.20 levels. Australian index advance 0.36% to 6,824.70. Japanese Nikkei traded 0.96% lower to 28,546.18.
European stocks were advance on Tuesday, with the Stoxx Europe 50 Index gained 1.12% to 3,592.89, Germany’s DAX rose 1.40% to 13,835.50 and France’s CAC higher 1.05% to 5,530.80 and U.K.’s FTSE 100 jumped 0.74% to 6,688.48.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield higher 0.79% to 1.048.
Oil prices fell on Tuesday as fading hopes for a rapid approval of new U.S. economic stimulus and mounting new coronavirus cases raised questions over the pace of any recovery in demand.
Spot Brent crude Oil rose 0.10% to $55.73 per barrel. US West Texas Intermediate crude above 0.15% to $52.84 a barrel.
The yellow metal traded 0.16% lower to 1853.10 dollar per ounce.
Market Wrap: Forex
The U.S. dollar steadied on Tuesday as rising coronavirus cases and doubts over the speed and size of U.S. stimulus tempered financial markets’ upbeat mood, while investors were also cautious ahead of the Federal Reserve’s review later in the week.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 90.422.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.07% today. This left the pairing trading around $1.21130.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY rose 0.05% to 103.780 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.10% to 0.77000 and NZD/USD flat to 0.71970.
EUR/USD Intraday: Bias on the upside
Our pivot point is at 1.21160
Preferable Price Action: Take Long positions above pivot level with targets at 1.21530 & 1.21780 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20810 & 1.20570.
Comment: Pair below its 55MA & 20MA and RSI near 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 downside
Our pivot point is at 1.36540
Preferable Price Action: Sell positions below pivot with targets at 1.36000 & 1.35650 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37100 & 1.37450.
Comment: Price below its 55MA & 20MA and RSI at oversold 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 103.710
Our pivot point is at 103.710
Preferable Price Action: Buy position above with the target at 103.920 and 104.050 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.510 and 103.380.
Comment: price 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
AUD/USD Intraday: Break suppor level
Our pivot point is at 0.77110
Preferable Price Action: Sell Positions below pivot with targets at 0.76700 & 0.76500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77530 & 0.77740 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 52.40
Preferable Price Action: Above pivots buy Oil with 53.20 & 53.80 as targets.
Alternative Price Action: Sell crude below pivot with targets at 51.60 and 51.00 in extension.
Comment: Crude 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
XAU/USD Intraday: Support at 1851.60
Our pivot point is at 1851.60
Preferable Price Action: Further upside to 1862.00 & 1870.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1841.00 and 1833.00.
Comment: MACD in positive territory and price below 55MA & 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: Bias on the upside
Our pivot point is 30,850.00
Preferable Price Action: Take buy positions above pivot with targets at 31,040.00 & 31,140.00 extension.
Alternative Price Action: Below 30,850.00 looks for further downside to 30,670.00 & 30,570.00.
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