Market Wrap: Stocks, Bonds, Commodities
American major indices gained on Thursday, bouncing back from losses in the previous session, thanks to a broad rally as earnings season got off to a strong start and fears lessened around hedge funds selling long positions to cover shorts.
The U.S. economy downshifted in the final three months of 2020 after record third-quarter growth, as the pandemic battered the labour market and limited Americans’ ability and willingness to spend.
The Dow Jones Industrial Average rose 300.19 points (0.99%) to 30,603.36, the S&P 500 gained 36.61 points (0.98%) to 3,787.38 and the Nasdaq Composite added 66.56 points (0.50%) to 13,337.16.
Asian stocks were set to rise on Friday after U.S. shares rallied and the dollar eased overnight, as fears of social-media driven hedge fund selling abated and the U.S. earnings season got off to a strong start.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.19% to 879.10 levels. Australian index fell 0.64% to 6,607.40. Japanese Nikkei traded 1.89% lower to 27,663.39.
European stocks were declined on Friday, with the Stoxx Europe 50 Index down 1.10% to 3,517.95, Germany’s DAX slumped 1.06% to 13,525.55 and France’s CAC fell 0.99% to 5,454.97 and U.K.’s FTSE 100 down 0.91% to 6,467.51.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield higher 1.48% to 1.071.
Oil prices were mixed on Friday as a pending supply cut by Saudi Arabia and lower U.S. oil stocks helped counter risks of slowing fuel demand due to stalled vaccine rollouts and contagious new coronavirus strains.
Spot Brent crude Oil rose 0.51% to $55.38 per barrel. US West Texas Intermediate crude advance 0.15% to $52.43 a barrel.
The yellow metal traded 0.59% higher to 1849.90 dollar per ounce.
Market Wrap: Forex
The dollar index gained attraction on Friday as an improvement in risk appetite rose demand for the safest assets, with traders taking cheer from U.S. economic data wasn’t as bad as feared.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.34% to 90.735.
The Euro US Dollar (EUR/USD) widely traded pair down 0.10% today. This left the pairing trading around $1.21110.
The Japanese yen down against the U.S. dollar on Friday as stock pushes lower. Today US/JPY rose 0.60% to 104.840 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.51% to 0.76410 and NZD/USD lost 0.13% to 0.71600.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.21150
Preferable Price Action: Take Short positions below pivot level with targets at 1.20850 & 1.20650 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21450 & 1.21650.
Comment: Pair below its 55MA & 20MA an 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: Trend downside
Our pivot point is at 1.37200
Preferable Price Action: Sell positions below pivot with targets at 1.36700 & 1.36400 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37700 & 1.38000.
Comment: Price 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
USD/JPY Intraday: Major trend on the upside
Our pivot point is at 104.430
Preferable Price Action: Buy position above with the target at 104.750 and 104.950 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.100 and 103.900.
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: Trend downside
Our pivot point is at 0.76720
Preferable Price Action: Sell Positions below pivot with targets at 0.76200 & 0.75950 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77200 & 0.77450 as targets.
Comment: Pair below its 20MA & 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
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 52.35
Preferable Price Action: Below pivots sell Oil with 51.75 & 51.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 52.95 and 53.30 in extension.
Comment: Crude 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
XAU/USD Intraday: Resistance at 1850.30
Our pivot point is at 1850.30
Preferable Price Action: Further downside to 1838.00 & 1832.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1862.00 and 1868.00.
Comment: MACD in negative 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: Trend on the downside
Our pivot point is 30,460.00
Preferable Price Action: Take sell positions below pivot with targets at 30,100.00 & 29,900.00 extension.
Alternative Price Action: Above 30,460.00 looks for further upside to 30,830.00 & 31,030.00.
Comment: Price below its 20MA & 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 produced7