Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq Composite indexes closed at record highs on Tuesday, with investors betting a COVID-19 vaccine will be available soon, and more confident about a speedy economic recovery following upbeat Chinese factory data.
The Dow Jones Industrial Average rose 0.63% to end at 29,823.92 points, while the S&P 500 gained 1.13% to 3,662.44. The Nasdaq Composite climbed 1.28% to 12,355.11.
Asian markets were set to climb on Wednesday after Wall Street indexes closed at record highs as investors grow increasingly hopeful about a vaccine to combat rising COVID-19 cases and an economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan jumped 0.20% to 802.40 levels. Australian index flat to 6,590.20. Japanese Nikkei advance 0.05% to 26,800.98.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index fell 0.48% to 3,508.20, Germany’s DAX down 0.59% to 13,303.30 and France’s CAC lose 0.42% to 5,558.34 and U.K.’s FTSE 100 flat to 6,381.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.55% to 0.920.
Oil prices extended losses on Wednesday, hit by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January.
Spot Brent crude Oil lose 0.13% to $47.44 per barrel. US West Texas Intermediate crude slightly to $44.49 a barrel.
The yellow metal traded 0.07% higher to 1817.00 dollar per ounce.
Market Wrap: Forex
The dollar stayed near a 2-year low on Wednesday as investors cautiously eyed developments in talks about further fiscal stimulus from the United States, while risk currencies held onto gains on improving risk appetite.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.06% to 91.352.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.16% today. This left the pairing trading around $1.20050.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.26% to 104.580 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.12% to 0.73780 and NZD/USD flat to 0.70640.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.20570
Preferable Price Action: Take Long positions above pivot level with targets at 1.20980 & 1.21180 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20080 & 1.19850.
Comment: Pair above its20MA 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 upside
Our pivot point is at 1.34230
Preferable Price Action: Buy positions above pivot with targets at 1.34600 & 1.34825 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33730 & 1.33520.
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: Support at 104.380
Our pivot point is at 104.380
Preferable Price Action: Buy position above pivot with the target at 104.590 and 104.700 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.170 and 103.035.
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: Resistance at 0.73870
Our pivot point is at 0.73870
Preferable Price Action: Sell positions below pivot with targets at 0.73650 & 0.73570 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.74065 & 0.74140 as targets.
Comment: Pair above 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
CRUDEOIL Intraday: Resistance at 44.80
Our pivot point is at 44.80
Preferable Price Action: Below pivots sell Oil with 44.10 & 43.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 45.40 and 45.80 in extension.
Comment: Crude below 55MA & 20MA 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: Trend on the downside
Our pivot point is at 1805.00
Preferable Price Action: Further upside to 1821.00 & 1831.50 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1787.50 and 1774.70.
Comment: MACD in positive territory and price above 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: Resistance at 29,847.00
Our pivot point is at 29,847.00
Preferable Price Action: Take sell positions below pivot with targets at 29,646.25 & 29,577.00 in extension.
Alternative Price Action: above 29,829.05 looks for further upside to 30,030.00 & 30,085.00
Comment: Price 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 produced7