Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Nasdaq reached new record closing highs on Monday as optimism over potential medical advances in the war against the coronavirus pandemic pushed all three major U.S. stock indexes higher.
The Dow Jones Industrial Average rose 378.13 points (1.35%) to 28,308.46, the S&P 500 gained 34.12 points (1.00%) to 3,431.28 and the Nasdaq Composite added 67.92 points (0.60%) to 11,379.72.
Asia’s stock markets opened higher on Tuesday following a Wall Street rally driven by vaccine hopes, while the dollar found some support ahead of a key central bank speech.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.23% to 728.30 levels. Australian index advances 0.52% to 6,161.40. Japanese Nikkei rose 1.35% to 23,296.77.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index rose 1.07% to 3,368.55, Germany’s DAX gained 1.08% to 13,210.00 and France’s CAC up 1.08% to 5,061.83 and U.K.’s FTSE 100 advance 0.82% to 6,155.70.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield surged 3.03% to 0.666.
Crude oil prices nudged higher on Monday as storms bore down on the Gulf of Mexico, shutting more than half the region’s oil production, although gains were capped by ongoing concerns about demand from coronavirus lockdowns.
Spot Brent crude Oil up 0.33% to $45.78 per barrel. US West Texas Intermediate crude flat to $42.70 a barrel.
The yellow metal traded 0.10% higher to 1934.20 dollars per ounce.
Market Wrap: Forex
The dollar was down on Tuesday morning in Asia, amid the wait for U.S. August consumer confidence readings, due later in the day, which are expected to rise slightly, and firmer guidance from the U.S. Federal Reserve on the U.S. economic recovery from COVID-19.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.16% to 93.138.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.25% today. This left the pairing trading around $1.18170.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY gained 0.20% to 106.190 level.
Other commodity-related currency gained against U.S dollar, AUD/USD rose 0.17% to 0.71720 and NZD/USD flat to 0.65240.
EUR/USD Intraday: Support at 1.17890
Our pivot point is at 1.17890
Preferable Price Action: Take Long positions above level with targets at 1.18322 & 1.18570 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17447 & 1.17187.
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: Support level at 1.30640
Our pivot point is at 1.30640
Preferable Price Action: Long positions above pivot with targets at 1.31353 & 1.31665 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29939 & 1.29604.
Comment: Price above 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: Trend on the upside
Our pivot point is at 105.900
Preferable Price Action: Long position above pivot with the target at 106.450 and 106.654 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.393 and 105.132.
Comment: price 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
AUD/USD Intraday: Resistance at 0.71910
Our pivot point is at 0.71910
Preferable Price Action: Short positions below pivot with targets at 0.71479 & 0.71235 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72358 & 0.72583 as targets.
Comment: Pair below its 55MA and RSI at 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 42.30
Preferable Price Action: Buy crude above pivot with targets at 43.00 and 43.30 in extension.
Alternative Price Action: Below pivots sell Oil with 41.58 & 41.27 as targets.
Comment: Crude above Its 55MA & 20MA and MACD in posistive 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: Bias on the upside
Our pivot point is at 1925.90
Preferable Price Action: Further upside to 1944.70 & 1953.91 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1908.30 and 1898.95.
Comment: RSI above 50 levels and price above its 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: Major trend upside
Our pivot point is at 28350.00
Preferable Price Action: Take buy positions above pivot with targets at 28730.00 & 28900.00 in extension.
Alternative Price Action: Below 28350.00 looks for further downside to 27960.00 & 27780.00.
Comment: Price above its 20MA & 55MA 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 produced7