Daily Market Outlook, 05 Dec, 2023

Market Wrap: Stocks, Bonds, Commodities

US stocks ended lower on Monday, interrupting last week’s rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.

The Dow Jones Industrial Average fell 41.06 points to 36,204.44, the S&P 500 lose 0.54% to 4,569.78 and the Nasdaq Composite subtract 119.54 points to 14,185.49.

MSCI’s index of Asia-Pacific stocks outside Japan is decline 1.10% to 608.78 levels. The Australian index was lower by 0.89% to 7,061.60. Japanese Nikkei Index drop 1.33% today.

European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index rose 0.11% to 4,419.75, Germany’s DAX ascend 0.08% to 16,416.55, and France’s CAC advance 0.16% to 7,344.00 and U.K.’s FTSE 100 subtract 0.44% to 7,479.54.

Benchmark 10-year U.S. Treasury fell as deman for safe assets ascend again, today 10-year bond yields negative 0.87% to 4.2520.

Oil prices fell on Tuesday on concern about a drop in demand and on continued uncertainty about the depth and duration of OPEC+ supply cuts.

Spot Brent crude oil ascend 1.28% to $79.00 per barrel. US West Texas Intermediate crude is up 1.31% to $73.95 a barrel.

The yellow metal gold is advance 0.51% to 2,052.55 dollars per ounce.

Market Wrap: Forex

The dollar fell on Friday, after two days of gains, as Federal Reserve Chair Jerome Powell struck a cautious tone on further interest rate moves, saying that the risk of under- or over-tightening is now more balanced.

Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which slipped 0.05% to 103.597.

The Euro US Dollar (EUR/USD) is a widely traded pair that is down 0.01% today. This left the pair trading around $1.08360.

The Japanese yen was negative against the U.S. dollar on Tuesday. Today USD/JPY is slipped 0.12% to the 147.030 level.

Another commodity-related currency negative against the U.S dollar, AUD/USD fell 0.61% to 0.65790, and NZD/USD slipped 0.06% to 0.61590 level.


EUR/USD Intraday: Trend on the downside

Our pivot point is at 1.08420

Preferable Price Action: Take sell positions below pivot level with targets at 1.07930 & 1.07640 in extension.

Alternative Price Action: Above pivot looks for a further upside to 1.08860 & 1.09130.

Comment: RSI is below 50 levels and Pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


GBP/USD Intraday: Resistance level at 1.26360

Our pivot point is at 1.26360

Preferable Price Action: Sell positions below pivot with targets at 1.26030 & 1.25840 in extension.

Alternative Price Action: The price above pivot would call for further upside to 1.26670 & 1.26880.

Comment:  RSI is below 50 levels and Pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 147.060

Preferable Price Action: Sell position below pivot with the target at 146.640 and 146.390 in extension.

Alternative Price Action: The upside breakout of the pivot would call for 147.390 and 147.650.

Comment: MACD is below 50 level and Pairs below 20MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


AUD/USD Intraday: Major trend on the downside

Our pivot point is at 0.65890

Preferable Price Action: Sell positions below pivot with targets at 0.65580 & 0.65430 in extension.

Alternative Price Action: Above pivot looks for a further upside with 0.66140 & 0.66330 as targets.

Comment: RSI is below 50 levels and Pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced


CRUDEOIL Intraday: Resistance level at 73.71

Our pivot point is at 73.71

Preferable Price Action: Below pivot sell oil with 72.53 & 71.77 as targets.

Alternative Price Action: Buy crude above pivot with targets at 74.73 and 75.57 in extension.

Comment: MACD is negative territory and Pairs below 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 2043.40

Preferable Price Action: Further downside to 2015.50 and 2000.00.

Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 2066.30 and 2086.50.

Comment: MACD is below 50 level and Pairs below 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate 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 36,161.00

Preferable Price Action: Take sell positions below the pivot with targets at 36,046.00 & 35,976.00.

Alternative Price Action: Above 36,161.00 looks for further upside to 36,272.00 & 36,347.00.

Comment: RSI is below 50 levels and Pairs below its 20MA & 55MA.

Green Lines Indicate Resistance Levels  – Red Lines Indicate Support Levels 
Light Blue is a Pivot Point   – Black represents the price when the report was produced