Market Wrap: Stocks, Bonds, Commodities
US stocks closed higher on Thursday, with the technology heavyweights rallying ahead of major earnings reports and upbeat domestic economic data calming investor jitters about surging coronavirus cases.
The Dow Jones Industrial Average rose 139.03 points (0.52%) to 26,658.98, the S&P 500 gained 39.11 points (1.20%) to 3,310.14 and the Nasdaq Composite added 180.73 points (1.64%) to 11,185.59.
Asian markets looked to continue downward pressure on Friday, after a drop in US equities and big company corporate earnings.
MSCI’s index of Asia-Pacific stocks outside Japan down 1.44% to 734.40 levels. Australian index plunged 0.55% to 5,927.30. Japanese Nikkei fell 1.52% to 22,977.20.
European stocks were lower on Friday, with the Stoxx Europe 50 Index fell 0.41% to 2,950.67, Germany’s DAX down 0.39% to 11,553.50 and France’s CAC lost 0.10% to 4,567.44 and U.K.’s FTSE 100 slipped 0.10% to 5,577.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.54% to 0.823.
Oil prices tumbled on Thursday, touching a five-month low and extending the previous day’s sharp decline on the impact renewed coronavirus lockdowns could have on oil demand.
Spot Brent crude Oil rose 0.55% to $38.46 per barrel. US West Texas Intermediate crude advance 0.61% to $36.41 a barrel.
The yellow metal traded 0.33% higher to 1874.20 dollar per ounce.
Market Wrap: Forex
The dollar firmed on Friday and the euro wallowed near a four-week low against the greenback after the European Central Bank signaled further monetary easing by the end of the year.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 93.890.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.16730.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY down 0.26% to 104.330 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.22% to 0.70440 and NZD/USD rose 0.05% to 0.66330.
EUR/USD Intraday: Trend on downside
Our pivot point is at 1.17040
Preferable Price Action: Take Short positions below level with targets at 1.16400 & 1.16100 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.17680 & 1.17980.
Comment: Pair 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 produced
GBP/USD Intraday: Trend downside
Our pivot point is at 1.29360
Preferable Price Action: Short positions below pivot with targets at 1.28800 & 1.28500 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29930 & 1.30230.
Comment: Price 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
USD/JPY Intraday: Support at 104.210
Our pivot point is at 104.210
Preferable Price Action: Long position above pivot with the target at 104.580 and 104.780 in extension.
Alternative Price Action: The downside breakout of pivot would call for 103.860 and 103.660.
Comment: price below 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: Resistance at 0.70420
Our pivot point is at 0.70420
Preferable Price Action: Short positions below pivot with targets at 0.69950 & 0.69700 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.70880 & 0.71130 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Resistance at 36.65
Our pivot point is at 36.65
Preferable Price Action: Sell crude below pivot with targets at 35.30 and 34.70 in extension.
Alternative Price Action: Above pivots buy Oil with 37.95 & 38.55 as targets.
Comment: Crude 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
XAU/USD Intraday: Support at 1865.70
Our pivot point is at 1865.70
Preferable Price Action: Further upside to 1878.60 & 1886.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1853.70 and 1846.00.
Comment: MACD in positive territory and price above its 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: Trend on downside
Our pivot point is at 26,400.00
Preferable Price Action: Take sell positions below pivot with targets at 26,050.00 & 25,850.00 in extension.
Alternative Price Action: Above 26,400.00 looks for further upside to 26,750.00 & 26,950.00.
Comment: Price below its 20MA & 55MA 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