Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq closed at record highs on Thursday, propelled by optimism about more pandemic relief under the Biden administration to support the economy after data showed a tepid labour market recovery.
The Dow Jones Industrial Average fell 12.37 points (0.04%) to 31,176.01, the S&P 500 gained 1.22 points (0.03%) to 3,853.07 and the Nasdaq Composite added 73.67 points (0.55%) to 13,530.92.
Asian shares eased from record highs on Friday as investors took some money off the table after a recent rally that was driven by hopes a massive U.S. economic stimulus plan by incoming President Joe Biden will help temper the COVID-19 impact.
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.91% to 920.80 levels. Australian index lost 0.34% to 6,800.40. Japanese Nikkei traded 0.44% lower to 28,631.45.
European stocks were declined on Friday, with the Stoxx Europe 50 Index down 1.26% to 3,572.32, Germany’s DAX slumped 1.10% to 13,754.00 and France’s CAC fell 1.36% to 5,514.70 and U.K.’s FTSE 100 down 0.89% to 6,655.25.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.02% to 1.096.
Oil prices dropped on Friday, retreating further from 11-month highs hit last week, weighed down by worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer.
Spot Brent crude Oil fell 2.21% to $54.84 per barrel. US West Texas Intermediate crude down 2.56% to $51.77 a barrel.
The yellow metal traded 1.10% lower to 1847.70 dollar per ounce.
Market Wrap: Forex
The dollar was headed for its worst week of the year on Friday, as investors cheered in the Joe Biden administration by buying riskier currencies and refreshed bets that a pandemic recovery could push the greenback lower still.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 90.150.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.15% today. This left the pairing trading around $1.21810.
The Japanese yen down against the U.S. dollar on Friday as stock pushes lower. Today US/JPY rose 0.20% to 103.670 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.68% to 0.77100 and NZD/USD lost 0.48% to 0.71770.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.21560
Preferable Price Action: Take Long positions above pivot level with targets at 1.21850 & 1.22050 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21270 & 1.21070.
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: Trend may reverse
Our pivot point is at 1.37220
Preferable Price Action: Sell positions below pivot with targets at 1.36700 & 1.36400 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37700 & 1.38000.
Comment: Price below 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: Break resistance levels
Our pivot point is at 103.550
Preferable Price Action: Buy position above with the target at 103.750 and 103.900 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.350 and 103.200.
Comment: price above 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 area
Our pivot point is at 0.77510
Preferable Price Action: Sell Positions below pivot with targets at 0.77150 & 0.76900 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77860 & 0.78100 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: Trend downside
Our pivot point is at 52.85
Preferable Price Action: Below pivots sell Oil with 52.00 & 51.40 as targets.
Alternative Price Action: Buy crude above pivot with targets at 53.70 and 54.30 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: Support at 1857.40
Our pivot point is at 1857.40
Preferable Price Action: Further upside to 1868.70 & 1876.70.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1846.00 and 1837.70.
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 downside
Our pivot point is 31,140.00
Preferable Price Action: Take sell positions below pivot with targets at 30,990.00 & 30,890.00in extension.
Alternative Price Action: Above 31,140.00 looks for further upside to 31,290.00 & 31,390.00.
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