Market Wrap: Stocks, Bonds, Commodities
Wall Street ended lower on Thursday, a day after hitting two-month highs, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world’s two largest economies.
The Dow Jones Industrial Average declined 0.40% to end at 24,475.30 points, while the S&P 500 slipped 0.78% to 2,949.20. The Nasdaq Composite fell 0.98% to 9,282.20.
Asian markets traded lower on Friday morning as tensions between the US and China rise and there is sign of further trade war rose between US-China.
MSCI’s index of Asia-Pacific stocks outside Japan down 2.70% to 592.30 levels. Australian index lower 0.96% to 5,497.20 and Japanese market fell 0.80% to 20,388.16.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index rose 0.10% to 2,904.98, Germany’s DAX lost 1.41% to 11,065.93 and France’s CAC slipped 1.15% to 4,445.45 and U.K.’s FTSE 100 declined 0.86% to 6,015.25.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 5.05% to 0.643.
Oil prices were on the rise on Friday, heading for a fourth straight week of gains, amid more evidence that fuel demand is recovering as countries ease business and social restrictions that were imposed to counter the coronavirus pandemic.
Spot Brent crude Oil plunged 4.60% to $34.41 per barrel. US West Texas Intermediate crude futures were lost 5.84% to $31.96 a barrel.
Today, gold prices rose 0.85% to $1734.50 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.22% to 99.618.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.25% today. This left the pairing trading around $1.09270. The pound traded 0.12% down to 1.22090.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY lost 0.23% to 107.380.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD slipped 0.62% to 0.65200 and NZD/USD down 0.15% to 0.61070.
EUR/USD Intraday: Bias Upside
Our pivot point is at 1.09000
Preferable Price Action: Take Long positions above pivot level with targets at 1.09515 & 1.09771 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08488 & 1.08216.
Comment: May Euro get stronger further.
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: pair have least resistance on the upside
Our pivot point is at 1.21750
Preferable Price Action: Long positions above pivot with targets at 1.22348 & 1.22637 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21143 & 1.20858.
Comment: MACD in the negative zone and pair 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
JPY/USD Intraday: Bias on the upside
Our pivot point is at 107.300
Preferable Price Action: Long position above pivot with the target at 107.646 and 107.891 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.941 and 106.693.
Comment: Pair above 55MA and RSI at oversold 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
AUD/USD Intraday: Resistance at 0.65500
Our pivot point is at 0.65500
Preferable Price Action: Short positions below pivot with targets at 0.65003 & 0.64745 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.65984 & 0.66238 as targets.
Comment: MACD in the negative zone and RSI at oversold 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: Support at 32.30
Our pivot point is at 32.30
Preferable Price Action: Sell crude below pivot with targets at 31.50 and 30.93 in extension.
Alternative Price Action: Above pivots buy Oil with 33.05 & 33.61 as targets.
Comment: MACD in the negative zone and price below 20MA and 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: Bias on the upside
Our pivot point is at 1724.00
Preferable Price Action: Further upside to 1742.28 & 1750.18 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1706.73 and 1698.53.
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 may change to down
Our pivot point is at 24400.00
Preferable Price Action: Take sell positions below pivot with targets at 23970.00 & 23725.96 in extension.
Alternative Price Action: Above 24400.00 looks for further upside to 24835.97 & 25078.70.
Comment: Inde below 20MA & 55MA and also 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 produced7