Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Dow rallied sharply but closed shy of their records on Monday as investors bet that a full economic reopening was finally in sight following the first positive data from a late-stage COVID-19 vaccine trial.
The Dow Jones Industrial Average gained 834 points (2.95%) to 29,157.90 in its biggest one-day percentage gain in last 4 month. The S&P 500 advance 41.10 points (1.17%) to 3,550.5 and the Nasdaq Composite slipped 181.45 points (1.53%) to 11,713.78.
Global stocks and oil jumped and Treasuries sold off on Monday as progress in the development of a coronavirus vaccine lifted investor confidence in a world economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan dropped 0.20% to 780.39 levels. Australian index gained 1.75% to 6,298.80. Japanese market soared 2.12% to 24,839.84.
European stocks were jumped on Monday, with the Stoxx Europe 50 Index soared 6.36% to 3,407.91, Germany’s DAX rose 4.94% to 13,095.97 and France’s CAC gained 7.57% to 5,336.32 and U.K.’s FTSE 100 up 4.67% to 6,186.29.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 2.52% to 0.934.
U.S. oil prices fell in early trade on Tuesday as concerns over demand in the near term in coronavirus-hit economies in Europe and the United States returned to haunt the market after an overnight surge on progress towards a COVID-19 vaccine.
Spot Brent crude Oil advance 0.66% to $42.67 per barrel. US West Texas Intermediate crude rose 0.32% to $40.42 a barrel.
The yellow metal traded 1.66% higher to 1885.20 dollar per ounce.
Market Wrap: Forex
The dollar was down on Tuesday morning in Asia over Monday’s news that a COVID-19 vaccine could become available relatively soon and raising optimism over the global economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.06% to 92.657.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.18% today. This left the pairing trading around $1.18370.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY fell 0.30% to 105.050 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.10% to 0.72930 and NZD/USD advance 0.29% to 0.68370.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.18560
Preferable Price Action: Take short positions above pivot level with targets at 1.19080 & 1.19340 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18020 & 1.17750.
Comment: Pair below its 55MA 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
GBP/USD Intraday: Break resistance levels
Our pivot point is at 1.31640
Preferable Price Action: Long positions above pivot with targets at 1.32100 & 1.32400 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.31170 & 1.30870.
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: Strong trend upside
Our pivot point is at 104.680
Preferable Price Action: Long position above pivot with the target at 105.390 and 105.690 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.000 and 103.690.
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: Support at 0.72650
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: Trend on the upside
Our pivot point is at 39.75
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: Bias on the upside
Our pivot point is at 1950.90
Preferable Price Action: Further upside to 1900.00 & 1913.00 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 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: Take support at 28,900
Our pivot point is at 28,900.00
Preferable Price Action: Take buy positions above pivot with targets at 29,500.00 & 29,800.00 in extension.
Alternative Price Action: Below 28,500.00 looks for further downside to 28,300.00 & 28,000.00.
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