Market Wrap: Stocks, Bonds, Commodities
World shares paused to assess a record-busting month on Monday as the prospect of a vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.
The Dow Jones Industrial Average rose 37.90 points (0.13%) to 29,910.37, the S&P 500 gained 8.70 points (0.24%) to 3,638.35 and the Nasdaq Composite added 111.44 points (0.92%) to 12,205.85.
Asian stock indices fell on Monday, pulling back from a record high hit earlier last week, amid renewed doubts about a highly-anticipated coronavirus vaccine and concern about the economic impact from the pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan plunged 1.43% to 796.70.10 levels. Australian index fell 0.79% to 6,517.80. Japanese Nikkei lost 0.79% to 26,433.62.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 0.60% to 3,505.35, Germany’s DAX down 0.50% to 13,269.00 and France’s CAC lose 0.68% to 5,561.09 and U.K.’s FTSE 100 slipped 0.28% to 6,350.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield flat to 0.842.
Crude oil prices fell on Monday, amid investor jitters ahead of a meeting of producer group OPEC+ to decide whether to extend large output cuts to balance global markets, but vaccine hopes helped keep them on track to rise more than a fifth in November.
Spot Brent crude Oil lose 1.89% to $47.34 per barrel. US West Texas Intermediate crude fell 1.54% to $44.80 a barrel.
The yellow metal traded 0.40% lower to 1778.80 dollar per ounce.
Market Wrap: Forex
The dollar fell to a more than two-year low on Monday and is set to log its largest monthly fall since July, as a combination of vaccine optimism and bets on more monetary easing in the United States drives investors out of the world’s reserve currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.10% to 91.707.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.10% today. This left the pairing trading around $1.19720.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY rose 0.12% to 104.190 level.
Other commodity-related currency advance against U.S dollar, AUD/USD flat to 0.73830 and NZD/USD rose 0.06% to 0.70270.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.19600
Preferable Price Action: Take Long positions above pivot level with targets at 1.19830 & 1.19950 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.19380 & 1.19250.
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: Resistance at 1.33550
Our pivot point is at 1.33550
Preferable Price Action: Short positions below pivot with targets at 1.33240 & 1.33080 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.33910 & 1.34100.
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: Trend on the downside
Our pivot point is at 104.030
Preferable Price Action: Short position below pivot with the target at 103.820 and 103.720 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.240 and 104.400.
Comment: price below its 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
AUD/USD Intraday: Support at 0.73740
Our pivot point is at 0.73740
Preferable Price Action: Long positions above pivot with targets at 0.73970 & 0.74070 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.73560 & 0.73460 as targets.
Comment: Pair below its 55MA & 20MA and RSI near 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: Bias on the downside
Our pivot point is at 45.05
Preferable Price Action: Below pivots sell Oil with 44.30 & 43.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 45.80 and 46.30 in extension.
Comment: Crude 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
XAU/USD Intraday: Trend on the downside
Our pivot point is at 1785.00
Preferable Price Action: Further downside to 1770.00 & 1764.00 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1797.00 and 1803.0.
Comment: MACD in positive 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 resistance area
Our pivot point is at 29,836.00
Preferable Price Action: Take Sell positions below pivot with targets at 29,524.10 & 29,430.00 in extension.
Alternative Price Action: Above 29,696.00 looks for further upside to 29,875.00 & 29,980.00.
Comment: Price 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 produced7