Market Wrap: Stocks, Bonds, Commodities
US stocks extended their recent rally on Friday and the S&P 500 and Nasdaq indexes scored their biggest weekly percentage gains since the US elections in early November, boosted by optimism over earnings, stimulus talks, and progress on vaccine rollouts.
The Dow Jones Industrial Average rose 92.38 points (0.3%) to 31,148.24, the S&P 500 gained 15.09 points (0.39%) at 3,886.83 and the Nasdaq Composite added 78.55 points (0.57%) at 13,856.30.
Asian shares hovered near record highs on Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.35% to 923.50 levels. Australian index advance 0.59% to 6,880.70. Japanese Nikkei traded 2.10% higher to 29,388.50.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 0.41% to 3,670.45, Germany’s DAX rose 0.25% to 14,091.60 and France’s CAC higher 0.65% to 5,695.73 and U.K.’s FTSE 100 advance 0.49% to 6,521.42.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield soared 2.25% to 1.196.
Oil prices rose on Monday, with Brent futures nearing $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures to boost demand.
Spot Brent crude Oil up 1.10% to $60.16 per barrel. US West Texas Intermediate crude advance 1.25% to $57.55 a barrel.
The yellow metal traded 0.20% lower to 1809.90 dollars per ounce.
Market Wrap: Forex
The dollar nursed losses against most currencies in subdued trade on Monday as disappointing U.S. jobs data caused some investors to scale back bets on a rebound in the greenback.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.21% to 91.157.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.12% today. This left the pairing trading around $1.20260.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.23% to 105.600 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD fell 0.20% to 0.76610 and NZD/USD lost 0.11% to 0.71890.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.20170
Preferable Price Action: Take Long positions above pivot level with targets at 1.20430 & 1.20600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.19910 & 1.19740.
Comment: Pair above its 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: Resistance at 1.37400
Our pivot point is at 1.37400
Preferable Price Action: Sell positions below pivot with targets at 1.36800 & 1.36500 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.38000 & 1.38300.
Comment: Price 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
USD/JPY Intraday: Upside strong trend
Our pivot point is at 105.500
Preferable Price Action: Buy position above with the target at 105.800 and 106.000 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.200 and 105.000.
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: Suport at 0.76520
Our pivot point is at 0.76520
Preferable Price Action: Buy Positions above pivot with targets at 0.76880 & 0.77180 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76160 & 0.75860 as targets.
Comment: Pair above its 55MA an 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: Trend upside
Our pivot point is at 57.15
Preferable Price Action: Above pivots buy Oil with 57.90 & 58.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 56.40 and 55.90 in extension.
Comment: Crude 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
XAU/USD Intraday: Trend on the upside
Our pivot point is at 1803.80
Preferable Price Action: Further upside to 1818.30 & 1826.90.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1789.40 and 1780.10.
Comment: MACD in positive territory and price above 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: Trend upside
Our pivot point is 31,150.00
Preferable Price Action: Take buy positions above pivot with targets at 31,380.00 & 31,530.00 extension.
Alternative Price Action: Below 31,150.00 looks for further downside to 30,910.00 & 30,740.00.
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