Market Wrap: Stocks, Bonds, Commodities
Stocks rose across the globe on Monday as investors cheered news that more countries and US states were looking to ease lockdowns and the Bank of Japan expanded its stimulus program, while the price of oil continued to crumble as storage runs out.
The Dow Jones Industrial Average rose 358.51 points (1.51%) to 24,133.78, the S&P 500 gained 41.74 points (1.47%) to 2,878.48 and the Nasdaq Composite added 95.64 points (1.11%) to 8,730.16.
Asian markets were little changed as oil prices continued to slip following an overnight plunge.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.35% to 596 levels. Australian index fell 0.20% to 5,311.30. Japan Nikkei down 0.20% to 19,752.
European stocks were higher on Monday, with the Stoxx Europe 50 Index advanced 2.60% to 2,882.11, Germany’s DAX rose 3.13% to 10,659.99 and France’s CAC up 2.55% to 4,505.26 and U.K.’s FTSE 100 higher 1.64% to 5,846.79.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grows again, today 10-year bond yield higher 0.72% to 0.659.
Oil fell on Tuesday, adding to huge declines in the previous session, on worries about the limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
Brent crude oil down 2.40% to $22.600 per barrel. while US West Texas Intermediate (WTI) crude plunged 11.66% to $14.00 per barrel.
Yellow metal edged lower as all around the world economy start to re-open. Today, gold price down 0.90% to $1695 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.10% to 100.170.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.10% today. This left the pairing trading around $1.08250.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY lower 0.20% to 107.220 level.
Other commodity-related currency broadly edged down against U.S dollar, AUD/USD fell 0.20% to 0.64560 and NZD/USD slipped 0.65% to 0.60080.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.08000
Preferable Price Action: Take long positions above pivot level with targets at 1.08507 & 1.08853 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07484 & 1.07147.
Comment: pair above 20MA 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
GBP/USD Intraday: Support at 1.23840
Our pivot point is at 1.23840
Preferable Price Action: Long positions above pivot with targets at 1.24450 & 1.24791 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23266 & 1.22923.
Comment: The RSI indicator above 50 levels and pair above 50MA & 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 Support level
Our pivot point is at 107.400
Preferable Price Action: Short position below pivot with the target at 106.909 and 106.557 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.875 and 108.215.
Comment: Pair below 20MA & 55MA and RSI below 50 level mark.
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: Bias on the upside
Our pivot point is at 0.64250
Preferable Price Action: Long positions above pivot with targets at 0.64854 & 0.65209 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63678 & 0.63324 as targets.
Comment: MACD in the positive zone and RSI above 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: Downside trend continues
Our pivot point is at 14.50
Preferable Price Action: Sell crude below pivot with targets at 12.75 and 11.62 in extension.
Alternative Price Action: Above pivots buy Oil with 16.18 & 17.29 as targets.
Comment: MACD in the negative zone and RSI below 50 level mark.
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: Intraday downtrend
Our pivot point is at 1705.00
Preferable Price Action: Further upside to 1720.19 & 1729.41 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1689.75 and 1680.37.
Comment: RSI below 50 level mark and price below 20MA & 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
Dow Jones Intraday: Support at 23,950
Our pivot point is at 23950.00
Preferable Price Action: Take buy positions above pivot with targets at 24,450.48 & 24,791.71 in extension.
Alternative Price Action: Below 23,850.00 looks for further downside to 23,443.82 & 23101.77.
Comment: Index above 20MA & 55MA and also MACD in 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