Daily Market Outlook, 19 February, 2020

Market Wrap: Stocks, Bonds, Commodities

US Wall Street’s major stock indices, Dow and S&P 500 fell on Tuesday after a sales warning from Apple Inc. left investors to quantify the impact of the coronavirus outbreak on U.S. companies.

The Dow Jones down 165.89 points (0.56%) to 29,232, the S&P 500 fell 9.87 points (0.29%) to 3,370 and the Nasdaq Composite flat to 9,732.74.

Regarding the U.S. economic data, later today analyst expects core PPI data m/m rose to 0.2% from 0.1% earlier and building permit at 1.45M.

Asian shares and US stock futures edged higher on Wednesday as Chinese official says that decline in the number of new cases.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.40% to 686.16 level. Australian shares were up 0.43%, while Japan’s Nikkei stock index rose 1.0%.

European stocks were down on Tuesday, with the Stoxx Europe 50 Index slipped 0.43% to 3,836, Germany’s DAX dropped 0.75% to 13,681.19 and France’s CAC lost 0.48% to 6,056.82 and U.K.’s FTSE 100 declined 0.69% to 7,382.01

U.S. government-bond prices jumped as demand for risky assets grows. The benchmark U.S. 10-year Treasury yields rose 0.54% to 1.564.

Crude Oil prices were slightly rose on Wednesday with gains limited by the economic effect from the virus, although new cases fell compare to early January.

Brent crude rose 0.90% to $58.35 per barrel, while US West Texas Intermediate (WTI) crude advanced 0.80% to $52.50.

Yellow metal surpassed $1,600 an ounce on Tuesday to log their highest finish since late March 2013. Today gold rose 0.17% to $1603 per ounce.

Market Wrap: Forex

The return of risk aversion to markets on Tuesday has increased demand for the U.S. dollar as a safe asset.

Against a basket of currencies, the greenback is sitting by a four-month high at 99.360

Euro gives its worst daily close against the U.S. dollar in nearly three years on TuesdayThe pair closed below 1.08000 on Tuesday, confirming its weakest daily close since April 2017.

The Australian dollar also traded lower after the Reserve Bank of Australia reiterated that low-interest rates will probably be required for an extended period, flagging concerns about the coronavirus.


EUR/USD Intraday: Downtrend continues

Our pivot point is at 1.08050

Preferable Price Action: Take short positions below pivot level with targets at 1.07907 & 1.07835 in extension.

Alternative Price Action: Above pivot looks for further upside at 1.08164 & 1.08232

Comment:The pair closed below 1.08000 on Tuesday, confirming its weakest daily close since April 2017.

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: Under pressure

Our pivot point is at 1.30060

Preferable Price Action: Short positions below pivot with targets at 1.29844 & 1.29720 in extension.

Alternative Price Action: Price above pivot would call for further upside to 1.30248 and 1.30379

Comment: The RSI indicator below the 50-level mark and pair below its 55MA & 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: Break Resistance level

Our pivot point is at 109.950

Preferable Price Action: Long position above 109.950 with the target at 110.147 and 110.233 in extension

Alternative Price Action: The downside breakout of 109.950 would call for 109.781 and 109.672

Comment: Pair above its 20MA and 55MA 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

 


AUD/USD Intraday: Resistance at 0.670000

Our pivot point is at 0.67000

Preferable Price Action: Short positions below pivot with targets at 0.66726 & 0.66591 in extension.

Alternative Price Action: Above pivot looks for further upside with 0.67221 & 0.67341 as targets.

Comment: pair below its 55MA and RSI at 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: Upside Trend resume

Our pivot point is at 51.89

Preferable Price Action: Buy above pivot with targets at 52.76 and 53.10 in extension.

Alternative Price Action: Below pivots sell Oil with 51.27 & 50.90 as targets.

Comment: Pair above its 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: Trend Upside Continues

Our pivot point is at 1600.20

Preferable Price Action: Further upside to 1606.62 & 1610.27

Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1593.83 and 1589.13

Comment: Gold tops $1,600 for the first time since 2013 as coronavirus fears spur haven demand

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: Uptrend Continues

Our pivot point is at 29,259

Preferable Price Action: Take long positions above pivot with targets at 29,363.7 & 29,425.5 in extension.

Alternative Price Action: Below 29,259 looks for further downside to 29,165 & 29,111

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