Daily Market Report: December 4, 2020
Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.
December 4, 2020
General Upward Trend Continues Following Recent Market Events
U.S. stocks were higher after the close on Thursday, as gains in the Oil & Gas, Consumer Goods and Industrials sectors established the upward trend. At the close in NYSE, the Dow Jones Industrial Average gained 0.73% to hit a new all-time high, while the S&P 500 index added 0.35%, and the NASDAQ Composite index climbed 0.58%.
The Dow Jones RSI calls for a new upleg.
Long positions above 29,650 with targets at 30,120 & 30,400 in extension.
Below 29,650, look for further downside with 29,460 & 29,230 as targets.
USD/CAD traded lower to close at 1.2867.
The RSI calls for a new downleg.
Short positions below 1.2905 with targets at 1.2825 & 1.2800 in extension.
Above 1.2905, look for further upside with 1.2925 & 1.2940 as targets.
Gold futures on Thursday marked their third straight session gain, finding support on renewed talk surrounding another U.S. coronavirus relief deal. "The key to Congress reaching a deal on a stimulus package could come from [Friday's] nonfarm payroll report,". "The last nonfarm payroll report of the year could show the labor market is in worse shape and that long-term unemployment is out of control." February gold rose $10.90, or 0.6%, to settle at $1,841.10 an ounce.
The RSI is mixed to bullish.
Long positions above 1825.00 with targets at 1851.00 & 1861.00 in extension.
Below 1825.00, look for further downside with 1817.00 & 1807.00 as targets.
Oil prices rose for a second day in a row as OPEC and its allies managed to announce a production hike without scaring the market — a development that underscored the cartel was finally learning from past mistakes. The 13-member Saudi-steered Organization of Petroleum Exporting Countries and 10 allies led by Russia agreed to increase production by 500,000 barrels per day beginning in January after days of tense discussions. This will bring the total production cuts at the start of 2021 to 7.2 million barrels per day.
The RSI is mixed to bullish.
Long positions above 45.30 with targets at 45.90 & 46.25 in extension.
Below 45.30, look for further downside with 45.05 & 44.65 as targets.
EUR/USD climbed to close at 1.2145, at levels not seen since April 2018, even with the European Central Bank widely expected to enhance its quantitative easing next week.
The RSI calls for a bounce.
Long positions above 1.2115 with targets at 1.2175 & 1.2200 in extension.
Below 1.2115, look for further downside with 1.2095 & 1.2070 as targets.
The pound surged Thursday on a report the U.K. and EU have made progress on fishing quotas, stoking hopes that a post-Brexit deal is within sight. GBP/USD rose 0.63% to $1.3447, though had been as high as $1.35 intraday.
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Long positions above 1.3420 with targets at 1.3500 & 1.3530 in extension.
Below 1.3420, look for further downside with 1.3395 & 1.3370 as targets.
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