Daily Market Outlook, 11 February 2020

Market Wrap: Stocks, Bonds, Commodities

US Wall Street’s major stock indices, S&P 500 and the Nasdaq closed at record highs on Monday as Chinese workers and factories returned to work following a Lunar holiday that was extended by the deadly coronavirus outbreak.

The Dow Jones Industrial Average advanced 174.31 points (0.60%) to 29,276.82, the S&P 500 rose 24.39 points (0.73%) to 3,352.1 and the Nasdaq Composite added 107.88 points (1.13%) to 9,628.39.

Asian stock indices advanced on Tuesday as investors tried to judge how quickly China’s factories could return to work and better than expected Chinese CPI data.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 1.0% to 684.5 with the Australian market rising 0.65% and South Korea’s KOSPI lifting 1.10%. Japan’s Nikkei was closed for a holiday.

European stocks were flat on Monday, with the Stoxx Europe 50 Index slipped -0.14% to 3,793.18, Germany’s DAX dropped 0.15% to 13,494 and France’s CAC down 0.23% to 6015.67 and the U.K.’s FTSE 100 declined 0.27% to 7,446.88.

U.S. government-bond prices up as demand for safe assets grow. The benchmark U.S. 10-year Treasury yields down 1.02% to 1.563.

The yellow metal rose four days continuously from $1547 to $1577 per ounce. Spot gold was little changed at $1,568 per ounce

Oil prices rose more than 1% on Tuesday as recent sharp falls have encouraged traders holding short positions to book profits, but the market remains caution over the coronavirus, which had killed more than 1,000 people in China.

Brent crude up 1.50% at $54.40 per barrel, while US West Texas Intermediate (WTI) crude rose 1.30% to $51.20 per barrel.

Market Wrap: Forex

The dollar held near four-month highs as better than expected U.S. economic data and traders put more money in the safe side bet US Dollar index.

Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, up +0.05% to 98.760.

Euro currency touched a four-month low in early trading, putting it on track for a sixth straight daily decline, the longest losing streak since September.

Other Commodity-linked currencies were broadly higher against the greenback. AUD/USD advanced +0.46% to 0.67170 and NZD/USD higher +0.22% to 0.63970.

EUR/USD Intraday: Downtrend continues

Our pivot point is at 1.09185

Preferable Price Action: Take short positions below the pivot level with targets at 1.09046 & 1.08937 in extension.

Alternative Price Action: Above pivot looks for further upside at 1.09312 & 1.09418
Comment: The RSI indicator below 50 and MACD on the negative side. Moreover, the pair is trading below its 55MA and 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 support at 1.29060

Our pivot point is at 1.29060

Preferable Price Action: Long positions above pivot with targets at 1.29310 & 1.29446 in extension.

Alternative Price Action: Price below pivot would call for further downside to 1.28912 and 1.29749

Comment: The RSI indicator near the 50-level mark and pair above 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 109.840

Preferable Price Action: Long position above 109.840 with the target at 109.958 and 110.025 in extension

Alternative Price Action: The downside breakout of 109.840 would call for 109.721 and 109.630

Comment: Pair above its 20MA and 55MA and RSI at overbought zone.

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:  Take support at 0.66640

Our pivot point is at 0.67054

Preferable Price Action: Long positions above pivot with targets at 0.67229 & 0.67372 in extension.

Alternative Price Action: Below pivot looks for further downside with 0.66853 & 0.66657 as targets.

Comment: The RSI indicator above 70 levels and price above their 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

CRUDEOIL Intraday: Resistance at 50.48

Our pivot point is at 50.48

Preferable Price Action: Sell below 50.48 with targets at 49.96 and 49.67 in extension.

Alternative Price Action: Above pivots buy Oil with 50.93 & 51.33 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 four day

Our pivot point is at 1569.85

Preferable Price Action: Further downside to 1565.75 & 1563.34

Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1572.85 and 1574.88

Comment: The RSI indicator at oversold level 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

Dow jones Intraday:   Trend Continues upward

Our pivot point is at 29,285

Preferable Price Action: Take long positions above pivot with targets at 29,426 & 28,517 in extension.

Alternative Price Action: Below 29,285 looks for further downside to 29,171 & 29,025.

Comment: The RSI indicator at 70 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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