Market Wrap: Stocks, Bonds, Commodities
US stocks closed higher on Wednesday, with the Dow Industrials nudging up to a record, as investors looked towards an improving economic outlook in 2021 on the back of COVID-19 vaccine rollouts and hopes for even more fiscal support.
The Dow Jones Industrial Average rose 73.89 points (0.24%) to 30,409.56, the S&P 500 gained 5 points (0.13%) to 3,732.04 and the Nasdaq Composite added 19.78 points (0.15%) to 12,870.00.
Asian shares edged up on Thursday and were set to end a tumultuous 2020 at record highs, while growing investor hopes for a global economic recovery caused the dollar to fall further against most major currencies.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.43% to 844.30 levels. Australian index lost 1.43% to 6,587.10. Japanese Nikkei advance down 0.45% to 27,444.17.
European stocks were declined on Thursday, Germany’s DAX closed today and France’s CAC fell 0.23% to 5,586.68 and U.K.’s FTSE 100 lost 1.43% to 6,463.37.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.15% to 0.925.
Oil prices fell on Monday as concerns about weakening fuel demand and the prospect of higher OPEC+ output outweighed optimism over a U.S. stimulus package.
Spot Brent crude Oil lower 0.27% to $51.50 per barrel. US West Texas Intermediate crude down 0.27% to $48.27 a barrel.
The yellow metal traded 0.16% higher to 1891.70 dollar per ounce.
Market Wrap: Forex
The dollar was ending 2020 in a downward spiral on Thursday with investors wagering a global economic recovery will suck money into riskier assets even as the yawning U.S. twin deficits argue for an ever-cheaper currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.13% to 89.532.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.10% today. This left the pairing trading around $1.22850.
The Japanese yen up against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY fell 0.15% to 103.020 level.
Other commodity related currency advance against U.S dollar, AUD/USD up 0.42% to 0.77180 and NZD/USD rose 0.36% to 0.72300.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.22780
Preferable Price Action: Take Long positions above pivot level with targets at 1.23130 & 1.23330 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.22420 & 1.22210.
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 at 1.36080
Our pivot point is at 1.36080
Preferable Price Action: Buy positions above pivot with targets at 1.36600 & 1.36900 in extension.
Alternative Price Action: Price Below pivot would call for further downside to 1.35560 & 1.35260.
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 103.320
Preferable Price Action: Sell position below pivot with the target at 103.000 and 102.830 in extension.
Alternative Price Action: The upside breakout of pivot would call for 103.650 and 103.820.
Comment: price below its 20MA & 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: Major trend upside
Our pivot point is at 0.76910
Preferable Price Action: Buy Positions above pivot with targets at 0.77220 & 0.77420 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76600 & 0.76400 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 48.20
Our pivot point is at 48.20
Preferable Price Action: Above pivots buy Oil with 48.80 & 49.20 as targets.
Alternative Price Action: Sell crude below pivot with targets at 47.60 and 47.20 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: Support at 1884.10
Our pivot point is at 1884.10
Preferable Price Action: Further upside to 1894.10 & 1899.50 level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1874.10 and 1868.30.
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: Support at 30,370.00
Our pivot point is at 30,370.00
Preferable Price Action: Take buy positions above pivot with targets at 30,480.00 & 30,550.00 in extension.
Alternative Price Action: Below 30,370.00 looks for further downside to 30,260.00 & 30,190.00.
Comment: Price 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 produced7