Market Wrap: Stocks, Bonds, Commodities
The three main Wall Street indexes ended Friday higher for the day and week, with the S&P 500 and the Dow breaking closing records, as investors took strong economic data and bank earnings as signs of momentum in the U.S. pandemic recovery.
Bitcoin, the world’s biggest cryptocurrency, fell as much as 14% to $51,541 on Sunday, reversing most of the big gains it made over the past week.
The Dow Jones Industrial Average rose 164.68 points (0.48%) to 34,200.67; the S&P 500 gained 15.05 points (0.36%) at 4,185.47; and the Nasdaq Composite added 13.58 points (0.10%) at 14,052.34.
Asian shares hovered near 1-1/2 week highs on Monday helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.10% to 883.78 levels. Australian index gained 0.22% to 7,078.80. Japanese Nikkei traded 0.18% higher to 29,737.00.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 0.10% to 4,025.50, Germany’s DAX rose 0.15% to 15,500.30, and France’s CAC higher 0.27% to 6,303.80 and U.K.’s FTSE 100 advance 0.10% to 7,028.12.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.90% to 1.558.
Oil prices were lower on Monday as rising coronavirus infections in India and other countries prompted concerns that stronger measures to contain the pandemic will hit economic activity, along with demand for commodities such as crude.
Spot Brent crude oil lost 0.12% to $66.69 per barrel. US West Texas Intermediate crude flat to $63.14 a barrel.
The yellow metal traded flat to 1780.30 dollars per ounce.
Market Wrap: Forex
The dollar headed for its worst back-to-back weekly drop this year amid an extended retreat in Treasury yields as investors increasingly bought into the Federal Reserve’s insistence of keeping an accommodative policy stance for a while longer.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, flat to 91.537.
The Euro US Dollar (EUR/USD) widely traded pair declined 0.10% today. This left the pairing trading around $1.19720.
The Japanese yen gained against the U.S. dollar on Monday as the stock pushes higher. Today US/JPY lost 0.21% to 108.540 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD up 0.10% to 0.77390 and NZD/USD rose 0.14% to 0.71490.
EUR/USD Intraday: Break resistance level
Our pivot point is at 1.19880
Preferable Price Action: Take long positions above pivot level with targets at 1.20370 & 1.20570 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.19400 & 1.19200.
Comment: Pair 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 produced
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.38430
Preferable Price Action: Buy positions above pivot with targets at 1.39050 & 1.39320 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37800 & 1.37520.
Comment: Price above its 20MA & 55MA 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
USD/JPY Intraday: Trend on the downside
Our pivot point is at 108.470
Preferable Price Action: Sell position below with the target at 108.000 and 107.800 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.930 and 107.800.
Comment: price below 20MA & 50MA 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: Trend on the upside
Our pivot point is at 0.77340
Preferable Price Action: Buy Positions above pivot with targets at 0.77850 & 0.78050 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76850 & 0.76650 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Support at 62.80
Our pivot point is at 62.80
Preferable Price Action: Above pivots buy Oil with 63.70 & 64.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 61.90 and 61.40 in extension.
Comment: Crude above its 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: Support at 1776.50
Our pivot point is at 1776.50
Preferable Price Action: Further upside to 1792.40 & 1800.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1760.80 and 1753.00.
Comment: MACD in positive territory and price above 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: Trend on the upside
Our pivot point is 34,010.00
Preferable Price Action: Take buy positions above pivot with targets at 34,200.00 & 34,280.00.
Alternative Price Action: Below 34,010.00 looks for further downside to 33,820.00 & 33,740.00.
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