Market Wrap: Stocks, Bonds, Commodities
The Dow Jones Industrial Average notched a record closing high on Tuesday as cyclical sectors gained on the prospect of more financial aid to lift the U.S. economy from a coronavirus-driven slump.
The Dow Jones Industrial Average rose 63.82 points (0.20%) to 31,522.22, the S&P 500 lost 2.25 points (0.06%) to 3,932.58 and the Nasdaq Composite dropped 47.98 points (0.34%) to 14,047.50.
Asian markets pointed to a mixed open on Wednesday, as investors juggle the prospects for an economic comeback and additional stimulus with continued pandemic concerns.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.55% to 958.85 levels. Australian index down 0.46% to 6,885.20. Japanese Nikkei traded 0.58% lower to 30,292.19.
European stocks were advance on Thursday, with the Stoxx Europe 50 Index slipped 0.44% to 3,709.94, Germany’s DAX fell 0.75% to 13,959.60 and France’s CAC lower 0.21% to 5,774.19 and U.K.’s FTSE 100 lost 0.36% to 6,725.90.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield fell 0.80% to 1.289.
Oil prices fell in early trade on Wednesday as the U.S. dollar climbed, retreating after a two-day rally that was driven by an Arctic blast curbing output from oil and gas fields in Texas, the country’s biggest oil-producing state.
Spot Brent crude Oil up 0.60% to $63.74 per barrel. US West Texas Intermediate crude advance 0.37% to $60.31 a barrel.
Gold steadied after posting four straight days of losses as Treasury yields held near their highest in a year on expectations that the economy is recovering from the pandemic’s impact.
The yellow metal traded 0.81% lower to 1785.10 dollars per ounce.
Market Wrap: Forex
The dollar advanced on Wednesday, hitting a four-month high against the yen as U.S. bond yields jumped on the prospects of further economic recovery and a possible acceleration in inflation.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.35% to 90.823.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.33% today. This left the pairing trading around $1.20630.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.10% to 106.200 level.
Other commodity-related currency lower against U.S dollar, AUD/USD down 0.05% to 0.77520 and NZD/USD fell 0.31% to 0.71900.
EUR/USD Intraday: Break support level
Our pivot point is at 1.20940
Preferable Price Action: Take short positions below pivot level with targets at 1.20600 & 1.20400 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21280 & 1.21480.
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
GBP/USD Intraday: Support at 1.38660
Our pivot point is at 1.38660
Preferable Price Action: Buy positions above pivot with targets at 1.39160 & 1.39460 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38140 & 1.37840.
Comment: Price above its 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: Trend on the upside
Our pivot point is at 105.750
Preferable Price Action: Buy position above with the target at 106.230 and 106.530 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.260 and 104.960.
Comment: price above 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: Support at 0.77420
Our pivot point is at 0.77420
Preferable Price Action: Buy Positions above pivot with targets at 0.77880 & 0.78180 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76970 & 0.76670 as targets.
Comment: Pair above its 55MA & 20MA an 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: Break resistance level
Our pivot point is at 60.00
Preferable Price Action: Above pivots buy Oil with 61.00 & 61.50 as targets.
Alternative Price Action: Sell crude below pivot with targets at 59.00 and 5850 in extension.
Comment: Crude above its 20MA & below 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: Resistance at 1795.50
Our pivot point is at 1795.50
Preferable Price Action: Further downside to 1780.00 & 1770.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1811.00 and 1821.00.
Comment: MACD in negative territory and price below 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: Major support at 31,600
Our pivot point is 31,600.00
Preferable Price Action: Take sell positions below pivot with targets at 31,460.00 & 31,360.00 extension.
Alternative Price Action: Below 31,600.00 looks for further upside to 31,730.00 & 31,830.00.
Comment: Price 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 produced7