Market Wrap: Stocks, Bonds, Commodities
US stocks closed higher on Tuesday on optimism about the development of coronavirus vaccines and a revival of business activity, but the S&P 500 failed to hold above the key psychological level of 3,000 points.
The Dow Jones Industrial Average climbed 529.80 points (2.18%) to 24,995.22, the S&P 500 rose 36.33 points (1.24%) to 2,991.90, and the Nasdaq Composite advanced 0.17% to 9,339.30.
Asian shares slipped on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.44% to 587.50 levels. Australian index slipped 0.12% to 5,775.00. Japan’s Nikkei led the way with a rise of 0.80% with the help of $1 trillion stimulus.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 0.94% to 2,999.22, Germany’s DAX gains 1.00% to 11,504.65 and France’s CAC advanced 1.46% to 4,606.24 and U.K.’s FTSE higher 1.24% to 6,067.76.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 1.62% to 0.687.
Oil prices fell on Wednesday on revived concerns over how quickly fuel demand will recover even as coronavirus lockdowns begin to ease in many countries, while U.S.-China tensions added to negative sentiment.
Spot Brent crude oil down 1.30% to $35.70 per barrel. US West Texas Intermediate crude futures were plunged 1.40% to $33.86 a barrel.
Today, gold prices slipped 0.45% to $1706.30 per ounce.
Market Wrap: Forex
The dollar was up on Wednesday morning in Asia with U.S.-China tensions mounting over the latter’s national security laws for Hong Kong and Macau.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.25% to 99.150.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.18% today. This left the pairing trading around $1.09600. The pound flat to 1.23230.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY flat to 107.530.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD fell 0.20% to 0.66400 and NZD/USD down 0.10% to 0.61910.
EUR/USD Intraday: Break resistance area
Our pivot point is at 1.09400
Preferable Price Action: Take Long positions above pivot level with targets at 1.09770 & 1.10000 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.09030 & 1.08803.
Comment: Broke multi-resistance area in daily time-frame.
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 the least resistance on the downside
Our pivot point is at 1.23250
Preferable Price Action: Short positions below pivot with targets at 1.22802 & 1.22555 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.23688 & 1.23923.
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 107.400
Preferable Price Action: Long position above pivot with the target at 107.758 and 107.940 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.046 and 106.855.
Comment: Pair above 20MA 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
AUD/USD Intraday: trend upside
Our pivot point is at 0.66200
Preferable Price Action: Long positions above pivot with targets at 0.66624 & 0.66849 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.65785 & 065551 as targets.
Comment: MACD in thepositive zone 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: Resistance at 34.40
Our pivot point is at 34.40
Preferable Price Action: Sell crude below pivot with targets at 33.21 and 32.60 in extension.
Alternative Price Action: Above pivots buy Oil with 35.51& 36.10 as targets.
Comment: RSI below 50 level mark 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: Break support level
Our pivot point is at 1714.00
Preferable Price Action: Further downside to 1698.53 & 1690.60 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1728.06 and 1736.03.
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: Trend upside continuesly
Our pivot point is at 25050.00
Preferable Price Action: Take buy positions above pivot with targets at 25372.00 & 25570.25 in extension.
Alternative Price Action: Below 25050.00 looks for further downside to 24701.42 & 24486.35.
Comment: Index above 20MA & 55MA and also 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 produced7