Market Wrap: Stocks, Bonds, Commodities
US stocks hovered near unchanged on Friday to close out with a big weekly gain as Democratic challenger Joe Biden edged closer to victory in the presidential election, while the monthly jobs report underscored the hurdles still facing the economy.
The Dow Jones Industrial Average fell 96.68 points (0.34%) to 28,293.5, the S&P 500 lost 4.05 points (0.12%) to 3,506.4 and the Nasdaq Composite dropped 4.43 points (0.04%), to 11,886.50.
A gauge of Asian shares was set to cling to a near three-year peak while the dollar stayed sluggish on Friday as the prospect of a divided U.S. legislature dimmed the chance of major policy changes, lifting risk appetite.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.08% to 784.40 levels. Australian index gained 1.75% to 6,298.80. Japanese market soared 2.12% to 24,839.84.
European stocks were higher on Monday, with the Stoxx Europe 50 Index advance 1.50% to 3,252.15, Germany’s DAX rose 1.63% to 12,684.90 and France’s CAC gained 1.40% to 5,030.86 and U.K.’s FTSE 100 up 1.45% to 5,995.36.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.40% to 0.817.
Oil prices gained more than 2% on Monday, with Brent rising above $40 a barrel after Joe Biden clinched the U.S. presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus pandemic.
Spot Brent crude Oil soared 2.33% to $40.37 per barrel. US West Texas Intermediate crude rose 2.37% to $38.00 a barrel.
The yellow metal traded 0.44% higher to 1959.70 dollars per ounce.
Market Wrap: Forex
The dollar hit a 10-week low on Monday as traders heralded Joe Biden’s election as U.S. president by buying trade-exposed currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.05% to 92.180.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.15% today. This left the pairing trading around $1.18900.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.16% to 103.500 level.
Other commodity related currency mixed against U.S dollar, AUD/USD gained 0.20% to 0.72870 and NZD/USD advance 0.53% to 0.68080.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18760
Preferable Price Action: Take Long positions above level with targets at 1.19200 & 1.9500 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18340 & 1.18040.
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: Break resistance levels
Our pivot point is at 1.31650
Preferable Price Action: Long positions above pivot with targets at 1.32250 & 1.32550 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.31050 & 1.30750.
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: Support at 103.300
Our pivot point is at 103.300
Preferable Price Action: Long position above pivot with the target at 103.730 and 104.030 in extension.
Alternative Price Action: The downside breakout of pivot would call for 102.890 and 102.600.
Comment: price above its 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.72670
Preferable Price Action: Long positions above pivot with targets at 0.73303 & 0.73600 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72020 & 0.71720 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: Bias on the upside
Our pivot point is at 38.15
Preferable Price Action: Buy crude above pivot with targets at 38.75 and 39.21 in extension.
Alternative Price Action: Below pivots sell Oil with 37.55 & 37.10 as targets.
Comment: Crude above Its 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: Trend on upside
Our pivot point is at 1950.90
Preferable Price Action: Further upside to 1965.00 & 1973.70 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1936.30 and 1927.50.
Comment: MACD in positive territory and price above its 55MA & 20MA.
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 levels
Our pivot point is at 28,500.00
Preferable Price Action: Take buy positions above pivot with targets at 28,830.00 & 29,000.00 in extension.
Alternative Price Action: Below 28,500.00 looks for further downside to 28,140.00 & 27,970.00.
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 produced7