Market Wrap: Stocks, Bonds, Commodities
U.S. stocks closed higher in a choppy session on Monday as hopes for a COVID-19 vaccine lifted economically sensitive sectors such as energy and industrials, but a pullback in mega-cap shares curbed gains on the S&P 500 and Nasdaq.
The Dow Jones Industrial Average rose 1.12% to 29,591.27, the S&P 500 gained 0.56% to 3,577.59 while the Nasdaq Composite added 0.22% to 11,880.63, underperforming as traders rotated away from big tech names.
Asian stocks opened higher on Tuesday as COVID-19 vaccine progress shored up global sentiment and U.S. President-elect Joe Biden was given the go-ahead to begin his White House transition.
MSCI’s index of Asia-Pacific stocks outside Japan flat to 803.40 levels. Australian index advances 1.26% to 6,644.10. Japanese Nikkei climbed 2.50% to 26,165.59.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 0.13% to 3,463.04, Germany’s DAX down 0.08% to 13,126.97 and France’s CAC lose 0.07% to 5,492.15 and U.K.’s FTSE 100 slipped 0.28% to 6,333.84.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 0.91% to 0.867.
Oil prices held gains on Tuesday as news of a third promising vaccine candidate spurred hopes of a quick recovery in oil demand, while U.S. President-elect Joe Biden received the go-ahead to begin his presidential transition.
Spot Brent crude Oil advance 1.06% to $46.53 per barrel. US West Texas Intermediate crude gained 1.18% to $43.57 a barrel.
The yellow metal traded 0.48% lower to 1832.30 dollars per ounce.
Market Wrap: Forex
The dollar was down on Tuesday, with riskier currencies boosted by the news that U.S. President-elect Joe Biden is set to nominate Janet Yellen as the U.S. Secretary of the Treasury.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.10% to 92.398.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.11% today. This left the pairing trading around $1.18510.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY down 0.08% to 104.450 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.54% to 0.73250 and NZD/USD up 0.80% to 0.69770.
EUR/USD Intraday: Support at 1.18770
Our pivot point is at 1.18770
Preferable Price Action: Take Long positions above pivot level with targets at 1.19000 & 1.19125 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18500 & 1.18330.
Comment: Pair above its 55MA & 20MA 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
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.33540
Preferable Price Action: Long positions above pivot with targets at 1.34050& 1.34360 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.33140 & 1.32800.
Comment: Price above 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
USD/JPY Intraday: Bias on the downside
Our pivot point is at 104.400
Preferable Price Action: Short position above pivot with the target at 104.060 and 103.880 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.610 and 104.790.
Comment: price below its 55MA & 20MA 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: Break Resistance levels
Our pivot point is at 0.731814
Preferable Price Action: Long positions above pivot with targets at 0.73780 & 0.74010 in extension.
Alternative Price Action: Belove pivot looks for further downside with 0.73090 & 0.72860 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 43.11
Preferable Price Action: Above pivots buy Oil with 43.98 & 44.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 42.75 and 42.32 in extension.
Comment: Crude 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
XAU/USD Intraday: Resistance at 1835.50
Our pivot point is at 1875.16
Preferable Price Action: Further downside to 1820.20 & 1809.00 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1853.00 and 1868.20.
Comment: MACD in negative territory and price below its 20MA & 55MA.
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 consolidation area
Our pivot point is at 29,710.00
Preferable Price Action: Take buy positions above pivot with targets at 29,997.00 & 30,142.00 in extension.
Alternative Price Action: Below 29,710.00 looks for further downside to 29,464.00 & 29,290.00.
Comment: Price 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 produced7