Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes rallied on Tuesday as healthcare stocks jumped, oil prices surged and a number of countries and US states eased coronavirus-induced restrictions in an attempt to revive their economies.
The Dow Jones Industrial Average rose 358.02 points (1.51%) to 24,107.78, the S&P 500 advanced 1.79% to 2,893.74 and the Nasdaq Composite higher 178.67 points (2.05%) to 8,889.39.
Stocks in Asia Pacific were mixed in Wednesday morning trade as oil prices retraced some of their overnight gains.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.79% to 580.00 levels. Australian index down 0.42% to 5,384.60. Japanese market closed for public holidays.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index rose 2.11% to 2,875.10, Germany’s DAX gained 2.51% to 10,729.46 and France’s CAC added 2.40% to 4,483.23 and U.K.’s FTSE 100 advanced 1.66% to 5,849.42.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield higher 4.10% to 0.684.
Oil prices soared on Tuesday, as some European and Asian countries along with several US states began to ease coronavirus lockdown measures.
Brent crude Oil rose 0.25% to $31.2700 per barrel. while US West Texas Intermediate (WTI) crude down 0.35% to $25.85 per barrel.
Today, gold prices flat to $1704 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 0.14% to 99.900.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.15% today. This left the pairing trading around $1.08280.
The Japanese yen rose against the U.S. dollar on Tuesday as demand for safe currency rose. Today US/JPY lower 0.20% to 106.380 level.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD gained 0.32% to 0.64450 and NZD/USD added 0.32% to 0.60690.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.08450
Preferable Price Action: Take short positions below pivot level with targets at 1.07915 & 1.07615 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08982 & 1.09295.
Comment: pair below 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: Resistance at 1.24650
Our pivot point is at 1.24650
Preferable Price Action: Short positions below pivot with targets at 1.24015 & 1.23715 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.25295 & 1.25595.
Comment: The RSI indicator below 50 and pair below 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 area
Our pivot point is at 106.500
Preferable Price Action: Short position below pivot with the target at 106.118 and 105.866 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.883 and 107.122.
Comment: Pair below 20MA & 55MA and RSI at 50 levels 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 0.64200
Preferable Price Action: Long positions above pivot with targets at 0.64722 & 0.65012 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63692 & 0.63398 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 Upside
Our pivot point is at 25.12
Preferable Price Action: Buy crude above pivot with targets at 26.56 and 27.58 in extension.
Alternative Price Action: Below pivots sell Oil with 23.64 & 22.65 as targets.
Comment: RSI at overbought 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
XAU/USD Intraday: Support at 1695
Our pivot point is at 1695.00
Preferable Price Action: Further upside to 1709.61 & 1715.14 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1681.91 and 1675.89.
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: Trend change to the upside
Our pivot point is at 23950.00
Preferable Price Action: Take buy positions above pivot with targets at 24310.80 & 24573.41 in extension.
Alternative Price Action: Below 23950.00 looks for further downside to 23591.56 & 23332.58.
Comment: Index above 55MA & 20MA 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