Market Wrap: Stocks, Bonds, Commodities
American major stock indices closed higher on Friday after President Trump publish measures against China in response to new security legislation that were less threatening to the US economy than traders had feared.
Trump did not provide specific measures to China in the response, and Traders remained hopeful that the tensions between the world two largest economy would have minimal impact.
The Dow Jones Industrial Average slipped 18 points (0.07%) to 25,384.23, the S&P 500 advanced 0.47%, to 3,044.40, and the Nasdaq Composite rose 121.20 points (1.29%) to 9,489.90.
Asian major stock indices were up on Monday morning with China releasing data indicating that its economy moved from contraction into expansion in May.
MSCI’s index of Asia-Pacific stocks outside Japan surged 2.60% to 615.60 levels. Australian index gained 1.10% to 5,819.20. Japan’s Nikkei rose 0.81% to 22,055.
European stocks were lower on Friday, with the Stoxx Europe 50 Index down 1.43% to 3,050.20, Germany’s DAX slipped 1.65% to 11,586.85 and France’s CAC fell 1.59% to 4,495.44 and U.K.’s FTSE lower 2.29% to 6,076.60.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 3.11% to 0.664.
Crude Oil prices flat in Asia following a weekend of civil unrest in theAmerica and as President Donald Trump escalated his war with China, expand fresh issues on the prospects for a recovery in economy.
Spot Brent crude Oil flat to $37.87 per barrel. US West Texas Intermediate crude futures were rose 0.20% to $35.55 a barrel.
The yellow metal was up on Monday, with traders turning to the safe-haven asset as tensions rose between the USA and China over the weekend. Gold prices advanced 0.42% to $1743.20 per ounce.
Market Wrap: Forex
The US dollar indices was down on Monday morning, with rising optimism over the global economic recovery from COVID-19 leading investors to retreat from the safe-haven asset even as the number of global cases continues to rise.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.43% to 97.920.
The Euro US Dollar (EUR/USD) widely traded pair gain by 0.41% today. This left the pairing trading around $1.11430. The pound advance 0.49% to 1.24050.
The trade-sensitive Australian dollar surged 1.35% to a three-month high of $0.67550 to lead broader gains that put the dollar close to an 11-week low on a basket of currencies.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY down 0.25% to 107.520.
EUR/USD Intraday: Forceful trend rise
Our pivot point is at 1.11220
Preferable Price Action: Take Long positions above pivot level with targets at 1.11630 & 1.11830 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.10767 & 1.10564.
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: Break resistance area
Our pivot point is at 1.23750
Preferable Price Action: Long positions above pivot with targets at 1.24140 & 1.24389 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23356 & 1.23095.
Comment: RSI above 50 level mark and pair 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
JPY/USD Intraday: In consolidation zone
Our pivot point is at 107.790
Preferable Price Action: Short position below pivot with the target at 107.415 and 107.218 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.160 and 108.337.
Comment: Pair below 55MA & 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: Gain 1.40% from morning
Our pivot point is at 0.67200
Preferable Price Action: Long positions above pivot with targets at 0.67666 & 0.67871 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.66725 & 0.66500 as targets.
Comment: MACD in the positive 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: Trend Upside
Our pivot point is at 35.00
Preferable Price Action: Buy crude above pivot with targets at 36.10 and 36.70 in extension.
Alternative Price Action: Below pivots sell Oil with 33.89 & 33.25 as targets.
Comment: MACD in the positive zone and price above 55MA & 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
XAU/USD Intraday: Trend on the upside
Our pivot point is at 1735.70
Preferable Price Action: Further upside to 1745.73 & 1750.77 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1725.64 and 1720.29.
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: Bias on downside
Our pivot point is at 25620.00
Preferable Price Action: Take sell positions below pivot with targets at 25325.35 & 21125.63 in extension.
Alternative Price Action: Above 25620.00 looks for further upside to 25900.38 & 26100.10.
Comment: after rising 41% from march low, may trend temporarily change.
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