Market Wrap: Stocks, Bonds, Commodities
American major stock indices higher on Monday and surging technology shares pushed the Nasdaq index to a record closing high, as positive trial results data from potential COVID-19 vaccines helped investors look beyond new cases of the disease.
The Dow Jones Industrial Average almost flat to 26,680.90, the S&P 500 advance 27.10 points (0.85%) to 3,251.84 and the Nasdaq Composite gained 264.10 points (2.49%) to 10,767.10.
Asian shares were set to open higher on Tuesday after U.S. markets gained ground on positive data from trials of three potential COVID-19 vaccines and hopes that the European Union would finalize a recovery fund.
MSCI’s index of Asia-Pacific stocks outside Japan gained 1.66% to 703.25 levels. Australian index surged 2.58% to 6,001.60. Japan’s Nikkei rose 0.73% to 22,884.50.
European stocks were mixed on Monday, with the Stoxx Europe 50 Index higher 0.68% to 3,388.35, Germany’s DAX gained 0.99% to 13,046.92 and France’s CAC rose 0.47% to 5,093.18 and U.K.’s FTSE 100 slipped 0.46% to 6,261.52.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.80% to 0.615.
Crude Oil prices higher on Monday as coronavirus cases increased in many countries but major announcements about a COVID-19 vaccine positive result and agreement over European leader to revive economies hit by the pandemic reduce losses.
Spot Brent crude oil rose 0.65% to $43.56 per barrel. US West Texas Intermediate crude futures were gain 0.54% to $41.14 a barrel.
The yellow metal gained on Monday, traded 0.35% higher to $1823.20 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.12% to 95.660.
Positive Progress toward a covid-19 vaccine and a fiscal help package in Europe put the American dollar under pressure and supported commodity-related currencies. Euro rose 0.15% against the dollar to 1.14610
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.10% to 107.310 level.
Other commodity related currency broadly higher against U.S dollar, AUD/USD up 0.45% to 0.70470 and NZD/USD advancing 0.10% to 0.65780.
EUR/USD Intraday: Support at 1.15680
Our pivot point is at 1.15680
Preferable Price Action: Take Long positions above level with targets at 1.16200 & 1.16417 in extension.
Alternative Price Action: Below pivot level looks for further downside at 1.15159 & 1.14899.
Comment: Pair above 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: Support at 1.27240
Our pivot point is at 1.27240
Preferable Price Action: Long positions above pivot with targets at 1.27714 & 1.27923 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.26773 & 1.26532.
Comment: Price above 55MA & 20MA 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
USD/JPY Intraday: Resistance at 107.280
Our pivot point is at 107.280
Preferable Price Action: Short position below pivot with the target at 106.950 and 106.803 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.592 and 107.737.
Comment: Pair below 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
AUD/USD Intraday: Support at 0.71340
Our pivot point is at 0.71340
Preferable Price Action: Long positions above pivot with targets at 0.71747 & 0.71952 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70909 & 0.70695 as targets.
Comment: Pair above 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: Trend upside
Our pivot point is at 41.75
Preferable Price Action: Buy crude above pivot level with targets at 42.68 and 43.20 in extension.
Alternative Price Action: Below pivots sell Oil with 40.86 & 40.30 as targets.
Comment: Crude 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
XAU/USD Intraday: at multi-year high
Our pivot point is at 1866.00
Preferable Price Action: Further upside to 1882.89 & 1890.69 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1848.46 and 1840.34.
Comment: MACD in positive zone and price above its 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: Break resistance area
Our pivot point is at 26950.00
Preferable Price Action: Take buy positions above pivot with targets at 27237.39 & 27400.73 in extension.
Alternative Price Action: Below 26950.00 looks for further downside to 26653.20 & 26481.36.
Comment: RSI at overbought levels 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 produced7