Market Wrap: Stocks, Bonds, Commodities
Wall Street rallied on Monday, and the Nasdaq reached an all-time closing high as sentiment was boosted by full FDA approval of a COVID-19 vaccine and market participants looked ahead to the Jackson Hole Symposium expected to convene later this week.
The Dow Jones Industrial Average rose 215.63 points (0.61%) to 35,335.71, the S&P 500 gained 37.86 points (0.85%) to 4,479.53 and the Nasdaq Composite added 227.99 points (1.55%) to 14,942.65.
Asian stocks rose on Tuesday on an extended bounce on Wall Street as investors drew comfort from full approval granted to the Pfizer/BioNTech vaccine and on easing worries of an imminent tapering of stimulus by the Federal Reserve.
MSCI’s index of Asia-Pacific stocks outside Japan gained 1.58% to 806.50 levels. Australian index rose 0.22% to 7,506.60. Japanese Nikkei traded 0.91% higher to 27,740.50.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index advance 0.18% to 4,184.01, Germany’s DAX rose 0.26% to 15,893.75, and France’s CAC fell 0.10% to 6,677.42, and U.K.’s FTSE 100 flat to 6,676.15.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields up 1.33% to 1.272.
Oil prices rose on Tuesday after the U.S. drug regulator granted full approval to the Pfizer/BioNTech COVID-19 vaccine, stoking investor hopes that higher fuel demand will follow a potential step-up in U.S. coronavirus vaccination rates.
Spot Brent crude oil gained 0.42% to $68.66 per barrel. US West Texas Intermediate crude advance 0.43% to $65.92 a barrel.
The yellow metal traded flat to 1805.65 dollars per ounce.
Market Wrap: Forex
The dollar was smarting on Tuesday following its sharpest one-day fall since May, though traders were wary of chasing the mood-driven move lower ahead of a Federal Reserve symposium that could map out an end to stimulus and asset purchases.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, which gained 0.05% to 93.013.
The Euro US Dollar (EUR/USD) is a widely traded pair that advanced flat today. This left the pairing trading around $1.17400.
The Japanese yen lost against the U.S. dollar on Tuesday as the stock pushes higher. Today US/JPY gained 0.13% to 109.810 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.35% to 0.72310, and NZD/USD rose 0.38% to 0.69140 level.
EUR/USD Intraday: Support at 1.17310
Our pivot point is at 1.17310
Preferable Price Action: Take long positions above pivot level with targets at 1.17620 & 1.17830 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.17010 & 1.16810.
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 upside
Our pivot point is at 1.37130
Preferable Price Action: Buy positions above pivot with targets at 1.37650 & 1.37880 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36660 & 1.36420.
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
USD/JPY Intraday: Support at 109.700
Our pivot point is at 109.700
Preferable Price Action: Buy position above pivot with the target at 110.010 and 110.180 in extension.
Alternative Price Action: The downside breakout of the pivot would call for 109.420 and 109.260.
Comment: Price above its 20MA and MACD in flat 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 on the upside
Our pivot point is at 0.72000
Preferable Price Action: Buy Positions above pivot with targets at 0.72560 & 0.72810 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.71490 & 0.71240 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: Support at 62.51
Our pivot point is at 65.20
Preferable Price Action: Above pivots buy Oil with 66.89 & 67.80 as targets.
Alternative Price Action: Sell crude below pivot with targets at 63.44 and 62.50 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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: Break resistance area
Our pivot point is 1796.80
Preferable Price Action: Further upside to 1810.10 & 1816.80.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1783.40 and 1776.60.
Comment: MACD in positive territory and price above its 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 upside
Our pivot point is 35,247.00
Preferable Price Action: Take long positions above pivot with targets at 35,539.00 & 35,722.00.
Alternative Price Action: below 35,247.00 looks for further downside to 34,928.00 & 34,742.00.
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 produced