Market Wrap: Stocks, Bonds, Commodities
Major averages closed on Thursday with a rebound from early lows as investors looked for signs of progress in fiscal stimulus talks to support the economy after labor market data showed a jump in jobless claims.
The Dow Jones Industrial Average fell 69.55 points (0.23%) to 29,999.26, the S&P 500 lost 4.72 points (0.13%) to 3,668.1 and the Nasdaq Composite added 66.86 points (0.54%) to 12,405.81.
Investors in Asia were set to push stocks lower on Friday as concerns about U.S. stimulus and climbing COVID-19 cases weighed globally on optimism.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.37% to 819.50 levels. Australian index lost 0.61% to 6,642.60. Japanese Nikkei advance down 0.39% to 26,652.52.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index down 0.19% to 3,522.31, Germany’s DAX fell 0.33% to 13,295.73 and France’s CAC advance 0.05% to 5,549.65 and U.K.’s FTSE 100 rose 0.54% to 6,599.76.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 0.20% to 0.910.
Oil surged above $50 a barrel on December 10 for the first time since early March as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in US crude inventories that showed there was still ample supply available.
Spot Brent crude Oil rose 0.62% to $50.58 per barrel. US West Texas Intermediate crude up 0.77% to $47.15 a barrel.
The yellow metal traded 0.06% higher to 1834.80 dollar per ounce.
Market Wrap: Forex
The dollar weakened in early European trade Thursday, with growing confidence surrounding U.S. fiscal stimulus and the vaccine rollout prompting traders to seek out riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.18% to 90.660.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.16% today. This left the pairing trading around $1.21550.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY slipped 0.16% to 104.030 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.46% to 0.7567 and NZD/USD rose 0.11% to 0.71030.
EUR/USD Intraday: Support at 1.21420
Our pivot point is at 1.21240
Preferable Price Action: Take Short positions below pivot level with targets at 1.21060 & 1.20800 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21800 & 1.22050.
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: Support level at 1.32960
Our pivot point is at 1.32960
Preferable Price Action: Buy positions above pivot with targets at 1.33450 & 1.33750 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.32500 & 1.32200.
Comment: Price at 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: Resistance at 104.200
Our pivot point is at 104.200
Preferable Price Action: Sell position below pivot with the target at 103.850 and 103.650 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.550 and 104.750.
Comment: price below 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: Major trend upside
Our pivot point is at 0.75410
Preferable Price Action: Buy Positions above pivot with targets at 0.75900 & 0.76250 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.74920 & 0.74550 as targets.
Comment: Pair above its 55MA & 20MA and RSI at 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
CRUDEOIL Intraday: Strong trend on the upside
Our pivot point is at 46.70
Preferable Price Action: Above pivots buy Oil with 47.80 & 48.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 45.60 and 45.10 in extension.
Comment: Crude above 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 downside
Our pivot point is at 1843.60
Preferable Price Action: Further downside to 1829.30 & 1821.90 level.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1857.50 and 1864.80.
Comment: MACD in positive territory and price below 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 29,980.00
Preferable Price Action: Take buy positions above pivot with targets at 30,140.00 & 30,240.00 in extension.
Alternative Price Action: Below 29,980.00 looks for further downside to 29,820.00 & 29,720.00.
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