Market Wrap: Stocks, Bonds, Commodities
American major indices rallied in a rocky session on Thursday as beaten-down technology stocks gained after data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims more than expected.
The Dow Jones Industrial Average advance 52.31 points (0.20%) to 26,815.44. The S&P 500 rose 9.67 points (0.30%) to 3,246.59, and the Nasdaq Composite higher 39.28 points (0.37%) to 10,672.27.
Asian stocks were set to open higher on Friday as a late Wall Street rally supported global sentiment although weak U.S. data and uncertainty about a stimulus package in Washington have kept a lid on confidence.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.05% to 695.30 levels. Australian index gained 1.51% to 5,964.90. Japanese Nikkei rose 0.51% to 23,204.62.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index fell 0.64% to 3,159.64, Germany’s DAX lost 0.29% to 12,606.57 and France’s CAC loss 0.83% to 4,762.62 and U.K.’s FTSE 100 slipped 1.30% to 5,822.78.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 1.02% to 0.671.
Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply.
Spot Brent crude Oil higher 0.10% to $40.44 per barrel. US West Texas Intermediate crude up 0.15% to $42.00 a barrel.
The yellow metal traded 0.10% higher to 1873.00 dollars per ounce.
Market Wrap: Forex
The U.S. dollar slipped from a two-month peak early on Friday as renewed hopes of U.S. stimulus eased traders concerns about economic recovery in America.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.12% to 94.282.
The Euro US Dollar (EUR/USD) widely traded pair up 0.05% today. This left the pairing trading around $1.16760.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY down 0.14% to 105.250 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.34% to 0.70680 and NZD/USD rose 0.31% to 0.65710.
EUR/USD Intraday: Support at 1.16630
Our pivot point is at 1.16630
Preferable Price Action: Take Long positions above level with targets at 1.16950 & 1.17150 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16300 & 1.16100.
Comment: Pair 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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.27440
Preferable Price Action: Long positions above pivot with targets at 1.28000 & 1.28300 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.26900 & 1.26600.
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
USD/JPY Intraday: Resistance at 105.480
Our pivot point is at 105.480
Preferable Price Action: Short position below pivot with the target at 105.090 and 104.890 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.850 and 106.050.
Comment: price below 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: Support at 0.70500
Our pivot point is at 0.70500
Preferable Price Action: Long positions above pivot with targets at 0.70900 & 0.71100 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70130 & 0.69940 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: Support at 40.15
Our pivot point is at 40.15
Preferable Price Action: Buy crude above pivot with targets at 40.65 and 40.90 in extension.
Alternative Price Action: Below pivots sell Oil with 39.65 & 39.40 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Support at 1865.10
Our pivot point is at 1865.10
Preferable Price Action: Further upside to 1880.75 & 1887.80 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1850.00 and 1843.50.
Comment: MACD in positive territory and price above it’s 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: Bias on the upside
Our pivot point is at 26870.00
Preferable Price Action: Take buy positions above pivot with targets at 27100.00 & 27250.00 in extension.
Alternative Price Action: Below 26870.00 looks for further downside to 26640.00 & 26480.00.
Comment: Price above its 20MA & 55MA and RSI at 5 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