Daily Market Outlook, 13 February, 2020

Market Wrap: Stocks, Bonds, Commodities

US Wall Street’s major stock indicesclosed at record highs on Wednesday as news flash that the coronavirus could be running out of steam kept buyers in the ring.

The Dow Jones Industrial Average advanced 274.46 points (0.94%) to 29,550.8, the S&P 500 rose 21.63 points (0.64%) to 3,379.38 and the Nasdaq Composite added 87.02 points (0.9%) to 9,725.96.

Regarding the U.S. economic data, later today economists expect Core CPI Data m/m rise to 0.2% from 0.2% earlier.

Asian stock indices inched lower on Thursdayas investors weighed a spike in the number of new coronavirus cases reported in China’s Hubei province due to a change in methodology.

MSCI’s broadest index of Asia-Pacific shares outside Japan was slipped0.12% to 690.9 level. Australian shares were up 0.22%, while Japan’s Nikkei stock index down 0.20% to 23,810.

European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index rose 0.75% to 3,854.43, Germany’s DAX gained 0.89% to 13,749.78 and France’s CAC added 0.83% to 6,104.73 and the U.K.’s FTSE 100 advanced 0.47 % to 7,534.37.

U.S. government-bond prices jumped as demand for haven assets grow. The benchmark U.S. 10-year Treasury yields down 1.96% to 1.595.

The Yellow metal is finding love in Asia amid signs of risk aversion in the equity and currency markets. the yellow metal is trading at $1,574 per ounce, representing a 0.40% gain on the day.

Crude Oil prices rose 3% on Wednesday as China officials reported its lowest daily number of new coronavirus cases since late January and traders hope that fuel demand in the world second-largest oil consumer may start to recover.

Brent futures gained 3.3% to settle at $56.40 per barrel, while US West Texas Intermediate (WTI) crude gained 2.5% to settle at $51.70.

Market Wrap: Forex

Sentiment for the US Dollar index has turned positive since data last week showed the U.S. labour market is improving.

Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.03% to 98.890.

The dollar traded at $1.08650 per euro, close to its strongest level in more than two years due to growing optimism about the health of the U.S. economy.

USD/JPY gained 0.24% to 110.04 on subdued safe-haven demand ascoronavirus case increased.

AUD/USD snaps the three-day winning streak and today down 0.35% to 0.67130

EUR/USD Intraday: Downtrend continues

Our pivot point is at 1.09880

Preferable Price Action: Take short positions below resistance level with targets at 1.09745 & 1.09655 in extension.

Alternative Price Action: Above pivot looks for further upside at 1.10016 & 1.10106

Comment: The RSI indicator below 50 and MACD on the negative side. Moreover, the pair is trading below its 20MA & 55 MA.

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 1.29425

Our pivot point is at 1.29425

Preferable Price Action: Long positions above pivot with targets at 1.29616& 1.29748in extension.

Alternative Price Action: Price below pivot would call for further downside to 1.29286 and 1.29170

Comment: The RSI indicator near the 50-level mark and pair at a lower zone of Bollinger band

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:  May Trend Reverse

Our pivot point is at 109.870

Preferable Price Action:Long position above 109.870 with the target at 109.970 and 110.028 in extension

Alternative Price Action: The downside breakout of 109.870 would call for 109.756 and 109.695

Comment: Pair below its 20MA and 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:  Intraday support at 0.67050

Our pivot point is at 0.67050

Preferable Price Action: Long positions above pivot with targets at 0.67300& 0.67494 in extension.

Alternative Price Action: Below pivot looks for further downside with 0.66854& 0.66707 as targets.

Comment: Pair near to its support area

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: Take support near 50 level

Our pivot point is at 50.62

Preferable Price Action: Buy above 50.62 with targets at 51.21 and 51.58in extension.

Alternative Price Action: Below pivotssell Oil with 50.17& 49.74 as targets.

Comment: Pair above its 55MA and MACD on positive side.

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 1570.20

Our pivot point is at 1570.20

Preferable Price Action: Further upside to 1573.96&1576.87.

Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1566.74 and 1564.38

Comment: Short term trend upside.

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: Upside Continues

Our pivot point is at 29,345

Preferable Price Action: Take long positions above pivot with targets at 29,491&28,529in extension.

Alternative Price Action: Below 29,345 looks for further downside to 29,200& 29,077.

Comment: Pair is trading above its 20MA& 55MA and RSI near 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

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