Market Wrap: Stocks, Bonds, Commodities
Wall Street scaled new highs on Friday as hopes of more stimulus from Washington were shaken a bit by a senator’s comments but later bolstered after U.S. President-elect Joe Biden said his economic package will be in the trillions of dollars.
The Dow Jones Industrial Average rose 56.84 points (0.18%) to 31,097.97. The S&P 500 gained 20.89 points (0.55%) to 3,824.68 and the Nasdaq Composite added 134.50 points (1.03%) to 13,201.98.
Asian shares took a breather on Monday while Treasury yields were at 10-month highs as “trillions” in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.13% to 888.30 levels. Australian index fell 0.90% to 6,690.00. Japanese Nikkei closed today.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index down 0.39% to 3,630.76, Germany’s DAX fell 0.47% to 13,934.25 and France’s CAC lost 0.45% to 5,681.120 and U.K.’s FTSE 100 slipped 0.33% to 6,850.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield flat to 1.083.
Brent crude oil prices fell by $1 per barrel on Monday, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns in Europe and new curbs on movement in China, the world’s second-largest oil user, where infections jumped.
Spot Brent crude Oil lost 1.38% to $55.20 per barrel. US West Texas Intermediate crude down 0.94% to $51.77 a barrel.
The yellow metal traded 0.80% higher to 1850.13 dollar per ounce.
Market Wrap: Forex
The dollar extended a rebound-on Monday, as sharp gains in U.S. yields and hopes for more stimulus to boost the world’s largest economy prompted some investors to temper bearish bets, pulling the currency further away from recent multi-year lows.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.41% to 90.442.
The Euro US Dollar (EUR/USD) widely traded pair down 0.43% today. This left the pairing trading around $1.21650.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.18% to 104.110 level.
Other commodity related currency declined against U.S dollar, AUD/USD lost 0.57% to 0.77150 and NZD/USD fell 0.71% to 0.71900.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.22090
Preferable Price Action: Take Short positions below pivot level with targets at 1.21580 & 1.21280 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.22600 & 1.22900.
Comment: Pair below its 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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.35310
Preferable Price Action: Sell positions below pivot with targets at 1.34800 & 1.34500 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.35830 & 1.36130.
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: Strong trend on the upside
Our pivot point is at 104.030
Preferable Price Action: Buy position above pivot with the target at 104.320 and 104.530 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.730 and 103.520.
Comment: price 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
AUD/USD Intraday: Break support level
Our pivot point is at 0.77240
Preferable Price Action: Sell Positions below pivot with targets at 0.76760 & 0.76460 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77720 & 0.78020 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: Bias on downside
Our pivot point is at 52.20
Preferable Price Action: Below pivots sell Oil with 51.00 & 50.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 53.40 and 54.00 in extension.
Comment: Crude below 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
XAU/USD Intraday: Support at 1833.00
Our pivot point is at 1833.00
Preferable Price Action: Further upside to 1860.00 & 1880.00 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1805.00 and 1785.00.
Comment: MACD in negative 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: Bias on the downside
Our pivot point is at 31,100.00
Preferable Price Action: Take sell positions below pivot with targets at 30,750.00 & 30,550.00 in extension.
Alternative Price Action: Above 31,100.00 looks for further upside to 31,460.00 & 31,660.00.
Comment: Price 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 produced7