Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes rose on Tuesday as US Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package before lawmakers to help the world’s largest economy ride out a pandemic-driven slump.
The Dow Jones Industrial Average rose 116.26 points (0.38%) to 30,930.52, the S&P 500 gained 30.66 points (0.81%) to 3,798.91 and the Nasdaq Composite added 198.68 points (1.53%) to 13,197.18.
Traders in Asian markets were poised for gains on Wednesday after Wall Street indexes rose on the back of U.S. Treasury Secretary nominee Janet Yellen’s push for a sizable fiscal relief package in response to the COVID-19 pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.20% to 889.20 levels. Australian index fell 0.78% to 6,663.00. Japanese Nikkei traded 0.97% lower to 28,242.20.
European stocks were advance on Wednesday, with the Stoxx Europe 50 Index gained 0.70% to 3,620.60, Germany’s DAX rose 0.72% to 13,914.30 and France’s CAC higher 0.57% to 5,630.46 and U.K.’s FTSE 100 flat to 6,714.28.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 1.10% to 1.104.
Oil prices rose in early trade on Wednesday, adding to solid gains overnight, on expectations the incoming U.S. administration will go ahead with massive stimulus spending that would boost fuel demand and drawdown crude stocks.
Spot Brent crude Oil up 0.73% to $56.31 per barrel. US West Texas Intermediate crude advance 1.04% to $53.53 a barrel.
The yellow metal traded 0.75% higher to 1854.40 dollar per ounce.
Market Wrap: Forex
The U.S. dollar nursed losses on Wednesday and the euro hung on to gains as investors’ mood brightened in the wake of a better-than-expected sentiment survey in Germany and big-spending talk from U.S. Treasury Secretary nominee Janet Yellen.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.07% to 90.412.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.05% today. This left the pairing trading around $1.21230.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY fell 0.10% to 103.780 level.
Other commodity related currency higher against U.S dollar, AUD/USD gain 0.53% to 0.77340 and NZD/USD rose 0.28% to 0.71370.
EUR/USD Intraday: Trend may reverse
Our pivot point is at 1.21340
Preferable Price Action: Take Short positions below pivot level with targets at 1.21000 & 1.20750 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21680 & 1.21910.
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: Strong Trend upside
Our pivot point is at 1.36760
Preferable Price Action: Buy positions above pivot with targets at 1.37220 & 1.37530 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36320 & 1.36000.
Comment: Price above its 55MA & 20MA and RSI at oversold 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: Support at 103.730
Our pivot point is at 103.730
Preferable Price Action: Buy position above with the target at 103.900 and 104.000 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.570 and 103.470.
Comment: price above 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: Support at 0.77160
Our pivot point is at 0.77160
Preferable Price Action: Buy Positions above pivot with targets at 0.77450 & 077640 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76880 & 0.76680 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 upside
Our pivot point is at 53.25
Preferable Price Action: Above pivots buy Oil with 53.80 & 54.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 52.70 and 52.30 in extension.
Comment: Crude 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
XAU/USD Intraday: Break resistance level
Our pivot point is at 1849.00
Preferable Price Action: Further upside to 1860.00 & 1869.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1837.10 and 1829.00.
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: support at 30,900
Our pivot point is at 30,900.00
Preferable Price Action: Take buy positions above pivot with targets at 31,100.00 & 31,200.00 in extension.
Alternative Price Action: Below 30,900.00 looks for further downside to 30,700.00 & 30,600.00.
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