Market Wrap: Stocks, Bonds, Commodities
The Dow Jones Industrial Average closed at a record high on Thursday, bolstered by an upbeat weekly jobless claims report, while vaccine makers dipped after U.S. President Joe Biden backed plans to waive patents on COVID-19 shots.
The Dow Jones Industrial Average rose 0.93% to end at 34,548.53 points, while the S&P 500 gained 0.82% to 4,201.62. The Nasdaq Composite climbed 0.37% to 13,632.84.
Asia Pacific stocks were mostly up Friday morning after U.S. shares closed at a record high on the back of positive economic data.
MSCI’s index of Asia-Pacific stocks outside Japan advance 0.39% to 878.12 levels. Australian index gained 0.27% to 7,080.80. Japanese Nikkei rose 0.10% to 29,357.82.
European stocks were advanced Friday, with the Stoxx Europe 50 Index advance 0.36% to 4,014.81, Germany’s DAX rose 1.03% to 15,351.90, and France’s CAC higher 0.10% to 6,363.20, and U.K.’s FTSE 100 gained 0.53% to 7,113.83.
Benchmark 10-year U.S. Treasury rose as demand for risky assets grows again, today 10-year bond yields jumped 0.92% to 1.575.
Oil headed for a second straight weekly advance as investors bet on rising energy demand amid a broad rally in commodities, with robust trade data from China highlighting the strength of the global economy.
Spot Brent crude oil down 0.13 to $68.01 per barrel. US West Texas Intermediate crude slipped 0.22% to $64.58 a barrel.
The yellow metal traded higher 0.28% to 1820.40 dollars per ounce.
Market Wrap: Forex
The dollar stayed under modest pressure on Friday ahead of a key U.S. jobs report that could cement expectations of a strong economic recovery and increase investor appetite for stocks, higher-yielding currencies, and commodities.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.17% to 90.785.
The Euro US Dollar (EUR/USD) is a widely traded pair that gained 0.15% today. This left the pairing trading around $1.20800.
The Japanese yen fell against the U.S. dollar on Friday as the stock pushes lower. Today US/JPY rose 0.05% to 109.110 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD declined 0.10% to 0.77710 and NZD/USD lost 0.11% to 0.72230.
EUR/USD Intraday: Support at 1.20560
Our pivot point is at 1.20560
Preferable Price Action: Take long positions above pivot level with targets at 1.20950 & 1.21150 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.20160 & 1.19960.
Comment: Pair above its 55MA & 20MA and RSI near overbought 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: In consolidation zone
Our pivot point is at 1.39020
Preferable Price Action: Buy positions above pivot with targets at 1.39400 & 1.39600 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38650 & 1.38450.
Comment: Price 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: In consolidation zone
Our pivot point is at 109.020
Preferable Price Action: Buy position above with the target at 109.280 and 109.430 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.770 and 108.620.
Comment: price above 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: Trend on the upside
Our pivot point is at 0.77630
Preferable Price Action: Buy Positions above pivot with targets at 0.78000 & 0.78200 in extension.
Alternative Price Action: Below pivot looks for the further downside with 0.77260 & 0.77060 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: Resistance at 65.25
Our pivot point is at 65.25
Preferable Price Action: Below pivots sell Oil with 64.10 & 63.60 as targets.
Alternative Price Action: Buy crude above pivot with targets at 66.40 and 66.90 in extension.
Comment: Crude below its 20MA & 55MA and MACD in the 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: Support at 1814.00
Our pivot point is at 1814.00
Preferable Price Action: Further upside to 1830.00 & 1838.00
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1797.60 and 1788.90.
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: Break resistance level
Our pivot point is 34,470.00
Preferable Price Action: Take buy positions above pivot with targets at 34,650.00 & 34,760.00.
Alternative Price Action: Below 34,470.00 looks for further downside to 34,290.00 & 34,180.00
Comment: Price above 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