Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th U.S. president, while solid results from Netflix sparked a rally in shares of “stay-at-home” beneficiaries.
The Dow Jones Industrial Average rose 257.86 points (0.83%) to 31,188.38, the S&P 500 gained 52.94 points (1.39%) to 3,851.85 and the Nasdaq Composite added 260.07 points (1.97%) to 13,457.25.
Asian markets were set to rise on Thursday after U.S. stocks closed at record highs on hopes that newly inaugurated U.S. President Joe Biden would put in place further economic stimulus to offset damage wreaked by the COVID-19 pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan advance 0.79% to 930.50 levels. Australian index higher 0.79% to 6,823.70. Japanese Nikkei traded 0.82% higher to 28,756.86.
European stocks were advance on Thursday, with the Stoxx Europe 50 Index gained 0.55% to 3,643.90, Germany’s DAX rose 0.60% to 14,007.30 and France’s CAC higher 0.36% to 5,648.20 and U.K.’s FTSE 100 up 0.29% to 6,761.55.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.10% to 1.079.
Oil price edged higher on Wednesday on expectations that U.S. President Joe Biden’s administration will deliver hefty pandemic-related economic stimulus that will lift fuel demand and enact policies that will tighten crude supply.
Spot Brent crude Oil fell 0.52% to $55.80 per barrel. US West Texas Intermediate crude down 0.54% to $53.01 a barrel.
The yellow metal traded 0.14% higher to 1869.70 dollar per ounce.
Market Wrap: Forex
The dollar held losses versus most major peers on Thursday as optimism that a massive U.S. stimulus package under the new Joe Biden administration will bolster growth sapped demand for safe-haven currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.13% to 90.347.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.13% today. This left the pairing trading around $1.21190.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY flat to 103.530 level.
Other commodity related currency higher against U.S dollar, AUD/USD gain 0.13% to 0.77560 and NZD/USD rose 0.36% to 0.71950.
EUR/USD Intraday: Support at 1.21180
Our pivot point is at 1.21180
Preferable Price Action: Take Long positions above pivot level with targets at 1.21500 & 1.21690 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20850 & 1.20650.
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
GBP/USD Intraday: Strong Trend upside
Our pivot point is at 1.36970
Preferable Price Action: Buy positions above pivot with targets at 1.37600 & 1.37940 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36330 & 1.35980.
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: Trend on the downside
Our pivot point is at 103.590
Preferable Price Action: Sell position below with the target at 103.380 and 103.260 in extension.
Alternative Price Action: The upside breakout of pivot would call for 103.800 and 103.920.
Comment: price 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.77490
Preferable Price Action: Buy Positions above pivot with targets at 0.77840 & 0.78050 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77140 & 0.76920 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 downside
Our pivot point is at 53.30
Preferable Price Action: Below pivots sell Oil with 52.50 & 52.00 as targets.
Alternative Price Action: Buy crude above pivot with targets at 54.10 and 54.60 in extension.
Comment: Crude 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
XAU/USD Intraday: Break resistance level
Our pivot point is at 1864.60
Preferable Price Action: Further upside to 1878.50 & 1887.30.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1849.70 and 1840.00.
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 upside
Our pivot point is at 31,160.00
Preferable Price Action: Take buy positions above pivot with targets at 31,300.00 & 31,400.00 in extension.
Alternative Price Action: Below 31,160.00 looks for further downside to 31,020.00 & 30,910.00.
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