Market Wrap: Stocks, Bonds, Commodities
Wall Street’s major indexes lost ground on Tuesday as investors moved out of market-leading growth stocks, though a rotation into cyclical value stocks indicated hopes of economic revival as states began to relax restrictions enacted to fight the deadly COVID-19 pandemic.
The Dow Jones Industrial Average fell 32.23 points (0.13%) to 24,101.55, the S&P 500 lost 15.09 points (0.52%) to 2,863.39 and the Nasdaq Composite dropped 122.43 points (1.40%) to 8,607.73.
Asian shares were cautiously higher on Wednesday as investors paused ahead of the US Federal Reserve’s policy decision while oil prices jumped on hopes demand will pick up as many countries lift some of the coronavirus-related restrictions.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.73% to 601.43 levels. Australian index rose 1.13% to 5,373.30. Japan Nikkei close today.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index advanced 1.76% to 2,932.06, Germany’s DAX rose 1.27% to 10,795.99 and France’s CAC up 1.43% to 4,569.79 and U.K.’s FTSE 100 higher 1.91% to 5,958.79.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lower 1.00% to 0.616.
Oil prices climbed on Wednesday, trimming some of this week’s steep losses after US stockpiles rose less than expected and hopes grew for demand to pick up as some European countries and US cities moved to ease coronavirus lockdowns.
Brent crude oil rose 1.67% to $23.300 per barrel. while US West Texas Intermediate (WTI) crude soared 11.00% to $15.17 per barrel.
Yellow metal-edged higher after three-day fall. Today, gold price rose 0.30% to $1711 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.23% to 100.910.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.33% today. This left the pairing trading around $1.08540.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY lower 0.30% to 106.530 level.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.81% to 0.65420 and NZD/USD higher 0.88% to 0.61107.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.08300
Preferable Price Action: Take long positions above pivot level with targets at 1.08868 & 1.09216 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07742 & 1.07408.
Comment: pair above 20MA & 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
GBP/USD Intraday: Support at 1.23840
Our pivot point is at 1.24450
Preferable Price Action: Long positions above pivot with targets at 1.25101 & 1.25448 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23858 & 1.23508.
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: Trend downside
Our pivot point is at 106.750
Preferable Price Action: Short position below pivot with the target at 106.214 and 105.857 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.308 and 107.659.
Comment: Pair below 20MA & 55MA and RSI at oversold 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
AUD/USD Intraday: Bias on the upside
Our pivot point is at 0.65150
Preferable Price Action: Long positions above pivot with targets at 0.65746 & 0.66098 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64532 & 0.64153 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: Trend may change
Our pivot point is at 14.85
Preferable Price Action: Buy crude above pivot with targets at 16.35 and 17.53 in extension.
Alternative Price Action: Below pivots sell Oil with 13.42 & 12.31 as targets.
Comment: MACD in the positive zone and RSI above 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 positive bias
Our pivot point is at 1700.00
Preferable Price Action: Further upside to 1719.19 & 1729.22 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1682.08 and 1672.31.
Comment: RSI above 50 level mark and price above 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 24,250
Our pivot point is at 24250.00
Preferable Price Action: Take buy positions above pivot with targets at 24648.16 & 24993.05 in extension.
Alternative Price Action: Below 24250.00 looks for further downside to 23847.86 & 23511.04.
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