Market Wrap: Stocks, Bonds, Commodities
US stocks finished sharply higher for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a US pandemic relief package.
Amazon CEO Jeff Bezos will leave his post later this year, turning the helm over to the company’s top cloud executive Andy Jassy.
The Dow Jones Industrial Average rose 475.57 points (1.57%) to 30,687.48, the S&P 500 gained 52.45 points (1.39%) to 3,826.31 and the Nasdaq Composite added 209.38 points (1.56%) to 13,612.78.
Asian markets moved higher during early trading as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programs accelerated.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.59% to 918.20 levels. Australian index advances 0.84% to 6,663.00. Japanese Nikkei traded 1.55% higher to 28,091.10.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 1.02% to 3,5165.95, Germany’s DAX rose 0.98% to 13,565.35 and France’s CAC higher 0.61% to 5,439.65 and U.K.’s FTSE 100 advance 1.05% to 6,444.51.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.90% to 1.084.
Oil rose in early trade on Wednesday on expectations global oil stocks will fall back to more normal levels this year and as U.S. lawmakers moved closer to approving President Joe Biden’s $1.9 trillion COVID-19 aid bill without Republican support.
Spot Brent crude Oil up 0.82% to $55.45 per barrel. US West Texas Intermediate crude advance 0.54% to $52.48 a barrel.
The yellow metal traded 0.77% higher to 1861.30 dollar per ounce.
Market Wrap: Forex
The dollar was slightly up on Wednesday morning in Asia, trading near a two-month high against the euro as the disparity between the strength of the U.S. and Europe’s pandemic recoveries widened.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.23% to 90.740.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.33% today. This left the pairing trading around $1.20960.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.17% to 104.870 level.
Other commodity related currency lower against U.S dollar, AUD/USD lost 0.05% to 0.76390 and NZD/USD fell 0.14% to 0.71800.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.20530
Preferable Price Action: Take Short positions below pivot level with targets at 1.20150 & 1.19900 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.20930 & 1.21200.
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: Break support level
Our pivot point is at 1.36730
Preferable Price Action: Sell positions below pivot with targets at 1.36300 & 1.36080 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37160 & 1.37370.
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: Support at 104.950
Our pivot point is at 104.950
Preferable Price Action: Buy position above with the target at 105.200 and 105.340 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.700 and 104.560.
Comment: price above 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: In a consolidation zone
Our pivot point is at 0.76015
Preferable Price Action: Buy Positions above pivot with targets at 0.76350 & 0.76550 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.75700 & 0.75500 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Trend on the upside
Our pivot point is at 54.65
Preferable Price Action: Above pivots buy Oil with 55.30 & 55.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 54.00 and 53.60 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: Resistance at 1844.40
Our pivot point is at 1844.40
Preferable Price Action: Further downside to 1833.00 & 1827.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1856.10 and 1862.40.
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 upside
Our pivot point is 30,640.00
Preferable Price Action: Take buy positions above pivot with targets at 30,500.00 & 30,700.00 extension.
Alternative Price Action: Below 30,200.00 looks for further downside to 29,910.00 & 29,710.00.
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