Daily Market Outlook, 10 February, 2020

Market Wrap: Stocks, Bonds, Commodities

US Wall Street’s major stock indices pulled back from record levels on Friday after a four-day continues rally, as traders digested a report that showed strength in the U.S. labour market while keeping an eye on developments surrounding the coronavirus breakout.

The Dow Jones Industrial Average declined 0.67% to 29,182.58. The S&P 500 slipped 0.26% to 3,337.11 and the Nasdaq Composite was dropped 0.14% at 9,559.00.

Regarding the U.S. economic data, Nonfarm payrolls increased by 225,000 jobs last month, much higher than a forecast of 160,000 job additions. Average hourly earnings m/m rose to 0.2% compared to 0.3% forecast by economists.

Asian stock indices filled early losses on Monday as the Chinese government lifted some coronavirus-related restrictions, helping businesses resume work through but the overall sentiment was still jittery as the death toll from the coronavirus rises.

MSCI’s broadest index of Asia-Pacific shares outside Japan stumbled 0.50% to 677 level. Japan’s Nikkei fell 0.60% to 23,680 while Australian shares eased 0.30%

European stocks were declined on Friday, with the Stoxx Europe 50 Index slipped 0.18% to 3,798.49, Germany’s DAX dropped 0.45% to 13,513.81 and France’s CAC down 0.14% to 6.029.75 and the U.K.’s FTSE 100 declined 0.51% to 7,466.70.

U.S. government-bond prices down as demand for risky assets grow. The benchmark U.S. 10-year Treasury yields up 0.76% to 1.589.

The yellow metal rose three days continuously from $1547 to $1573 per ounce. Today spot Gold traded flat to $1571 per ounce.

Oil prices on Monday extended their decline from an early January peak above $70 as excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China, the world’s largest oil importer.

Brent crude up 0.10% at $54.90 per barrel, while US West Texas Intermediate (WTI) crude rose 0.07% to $51.50 per barrel.

Market Wrap: Forex

The dollar held near a four-month as better than expected U.S. economic data about Non-Farm Employment change.

Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down -0.05% to 98.515.

The euro gain 0.10% to $1.09540, while USD/JPY recover from early day downside and now flat at 109.820. The British pound at $1.29045.

Other Commodity-linked currencies were broadly higher against the greenback. AUD/USD advanced +0.50% to 0.67060 and NZD/USD higher +0.17% to 0.64110.

EUR/USD Intraday : Downtrend continues

Our pivot point is at 1.09640

Preferable Price Action: Take short positions below resistance level with targets at 1.09502 & 1.09427 in extension.

Alternative Price Action: Above pivot looks for further upside at 1.09729 & 1.09810

Comment: The RSI indicator near 50 and MACD on the negative side. Moreover, the pair is trading below its 55MA and 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

GBP/USD Intraday:  Intraday Resistance at 1.29230

Our pivot point is at 1.29230

Preferable Price Action: Short positions below pivot with targets at 1.28950 & 1.28810 in extension.

Alternative Price Action: Price above pivot would call for further upside to 1.29498 and 1.29689

Comment: The RSI indicator near the 50-level mark and pair below its 55MA and above 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

JPY/USD Intraday:  Upside moment continues

Our pivot point is at 109.730

Preferable Price Action: Long position above 109.730 with the target at 109.896 and 109.986 in extension

Alternative Price Action: The downside breakout of 109.730 would call for 109.601 and 109.522

Comment: Pair above its 20MA and 55MA and MACD also 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

AUD/USD Intraday:  At a weekly support level

Our pivot point is at 0.66890

Preferable Price Action: Long positions above pivot with targets at 0.67113 & 0.67224 in extension.

Alternative Price Action: Below pivot looks for further downside with 0.66748 & 0.66627 as targets.

Comment: The RSI indicator below 50 levels and price below their 55MA and above its 20MA and MACD near-zero level.

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 50.52

Our pivot point is at 50.52

Preferable Price Action: Sell below 50.52 with targets at 50.14 and 49.77 in extension.

Alternative Price Action: Above pivots buy Oil with 50.92 & 51.17 as targets.

Comment: Price near phycological level-50

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:  Continues rose from last three day

Our pivot point is at 1569.20

Preferable Price Action: Further upside to 1572.61 & 1575.12

Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1565.95 and 1563.34

Comment: The RSI indicator near 50 marks 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

Dow jones Intraday:   Intraday Resistance at 29,164

Our pivot point is at 29,164

Preferable Price Action: Take short positions below pivot with targets at 29,038 & 28,965 in extension.

Alternative Price Action: Above 29,164 looks for further upside to 29,275 & 29,370.

Comment: The RSI indicator below 50 marks. Moreover, the pair is trading above 20MA and below its 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

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