Market Wrap: Stocks, Bonds, Commodities
The Nasdaq closed at a record high on Monday after investors moved into mega-cap growth stocks even as a new round of COVID-19 restrictions underscored the continuing economic impact of the pandemic on the United States.
The Dow Jones Industrial Average fell 149.59 points (0.50%) to 30,068.67, the S&P 500 lost 6.4 points (0.17%) to 3,692.72 and the Nasdaq Composite added 56.02 points (0.45%) to 12,520.25.
Asian stocks came under pressure in early trade on Tuesday as investors struggled to balance hopes for more economic stimulus and vaccines with anxiety over the growing number of COVID-19 cases.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.05% to 816.00 levels. Australian index advances 0.62% to 6,675.00. Japanese Nikkei advance down 0.76% to 26,547.44.
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.66% to 3,515.70, Germany’s DAX down 0.55% to 13,224.70 and France’s CAC down 0.82% to 5,563.10 and U.K.’s FTSE 100 flat to 6,547.22.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.37% to 0.946.
Oil prices fell on Tuesday, adding to losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.
Spot Brent crude Oil lost 1.28% to $48.63 per barrel. US West Texas Intermediate crude down 1.47% to $45.58 a barrel.
The yellow metal traded 0.12% lower to 1834.20 dollar per ounce.
Market Wrap: Forex
A stronger U.S. dollar will increasingly weigh on emerging- market economic prospects, since developing countries have taken on so much dollar-denominated debt in the past decade, the Bank of International Settlements said on Monday.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.41% to 91.062.
The Euro US Dollar (EUR/USD) widely traded pair fell 0.20% today. This left the pairing trading around $1.20970.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.08% to 104.220 level.
Other commodity related currency decline against U.S dollar, AUD/USD down 0.28% to 0.74000 and NZD/USD slipped 0.27% to 0.70260.
EUR/USD Intraday: Bias on the downside
Our pivot point is at 1.21280
Preferable Price Action: Take Short positions below pivot level with targets at 1.20850 & 1.20600 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21720 & 1.21980.
Comment: Pair below its 20MA & 55MA and RSI below 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 upside
Our pivot point is at 1.33170
Preferable Price Action: Buy positions above pivot with targets at 1.33750 & 1.34050 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.32620 & 1.32320.
Comment: Price above 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 produced
USD/JPY Intraday: Support at 103.980
Our pivot point is at 103.980
Preferable Price Action: Buy position above pivot with the target at 104.300and 104.500 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.660 and 103.450.
Comment: price above 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: Bias on the upside
Our pivot point is at 0.74000
Preferable Price Action: Buy Positions above pivot with targets at 0.74300 & 0.74500 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.73700 & 0.73500 as targets.
Comment: Pair below its 55MA & 20MA and RSI below 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 45.20
Our pivot point is at 45.20
Preferable Price Action: Above pivots buy Oil with 46.00 & 46.50 as targets.
Alternative Price Action: Sell crude below pivot with targets at 44.40 and 43.90 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: Strong Trend upside
Our pivot point is at 1856.30
Preferable Price Action: Further upside to 1867.30 & 1874.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1845.00 and 1837.90.
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: In consolidation zone
Our pivot point is at 29,930.00
Preferable Price Action: Take buy positions above pivot with targets at 30,100.00 & 30,200.00 in extension.
Alternative Price Action: Below 29,930.00 looks for further downside to 29,760.00 & 29,660.00
Comment: Price above its 20MA and RSI below 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