Market Wrap: Stocks, Bonds, Commodities
Asian share markets hit pause on Monday as reports of a possible tightening in coronavirus emergency rules for Tokyo pulled Japanese stocks off 30-year highs, while also lifting the safe-haven yen.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.24% to 853.75 levels. Australian index lost 0.45% to 6,682.40. Japanese Nikkei advance down 0.45% to 27,444.17.
European stocks were advanced on Monday, with the Stoxx Europe 50 Index rose 0.69% to 3,596.65, Germany’s DAX gained 0.99% to 13,854.30 and France’s CAC up 1.49% to 5,633.17 and U.K.’s FTSE 100 jumped 2.60% to 6,625.63.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 1.40% to 0.925.
Oil prices edged lower on Monday, the first day of 2021 trading, ahead of a meeting of OPEC and allied producers to discuss output levels for February with fears for first-half demand seeping into the market as the coronavirus pandemic lingers.
Spot Brent crude Oil higher 2.30% to $52.98 per barrel. US West Texas Intermediate crude gained 1.96% to $49.48 a barrel.
The yellow metal traded 2.15% higher to 1930.70 dollar per ounce.
Market Wrap: Forex
The dollar started the new year by slipping broadly on Monday as investors sold it for just about everything else in the Asia session, wagering the world’s pandemic recovery will drive other currencies higher.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.49% to 89.457.
The Euro US Dollar (EUR/USD) widely traded pair rose 1.26% today. This left the pairing trading around $1.22900.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY fell 0.44% to 102.740 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.43% to 0.77380 and NZD/USD rose 0.42% to 0.72270.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.22430
Preferable Price Action: Take Long positions above pivot level with targets at 1.22840 & 1.23050 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.22020 & 1.21820.
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 1.36700
Preferable Price Action: Buy positions above pivot with targets at 1.37300 & 1.37600 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.36100 & 1.35800.
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: Trend on the downside
Our pivot point is at 103.130
Preferable Price Action: Sell position below pivot with the target at 102.830 and 102.640 in extension.
Alternative Price Action: The upside breakout of pivot would call for 103.440 and 103.630.
Comment: price 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
AUD/USD Intraday: Major trend upside
Our pivot point is at 0.76970
Preferable Price Action: Buy Positions above pivot with targets at 0.77500 & 0.77760 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76400 & 0.76130 as targets.
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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 49.30
Preferable Price Action: Above pivots buy Oil with 49.90 & 50.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 48.70 and 48.30 in extension.
Comment: Crude above 55MA & 20MA 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: Strong trend on the upside
Our pivot point is at 1917.00
Preferable Price Action: Further upside to 1930.70 & 1938.60 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1904.10 and 1895.50.
Comment: MACD in positive territory and price below 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: Support at 30,600.00
Our pivot point is at 30,600.00
Preferable Price Action: Take buy positions above pivot with targets at 30,820.00 & 30,930.00 in extension.
Alternative Price Action: Below 30,600.00 looks for further downside to 30,380.00 & 30,270.00.
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