Market Wrap: Stocks, Bonds, Commodities
US stocks posted gains on Monday as signs of US economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising US-China tensions.
The Dow Jones Industrial Average higher 92 points (0.37%) to 25,475.02, the S&P 500 rose 0.38%, to 3,056.50 and the Nasdaq Composite advance 0.67%, to 9,553.10.
Asian stocks posted modest gains on Tuesday morning, with investors optimistic about the global economic recovery from the COVID-19 virus, with companies re-opening for business and the global economy starting on the long but certain road to recovery.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.58% to 619.73 levels. Australian index gained 0.65% to 5,857.10. Japan’s Nikkei rose 1.40% to 22,350.50.
European stocks were higher on Monday, Germany’s DAX close on Monday and France’s CAC advanced 1.43% to 4,762.78 and U.K.’s FTSE higher 1.48% to 6,166.42.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 0.30% to 0.664.
Oil prices rose in early trade on Tuesday, with traders waiting to see whether major crude producers agreed to extend their huge output cuts to shore up prices at a meeting expected later this week.
Spot Brent crude Oil up 0.70% to $38.59 per barrel. US West Texas Intermediate crude futures were gained 0.51% to $35.62 a barrel.
Today, gold prices are flat to $1739.30 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.05% to 97.787.
The Euro US Dollar (EUR/USD) widely traded pair gain by 0.10% today. This left the pairing trading around $1.11340. The pound advance 0.05% to 1.24980.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY gain 0.15% to 107.720.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.12% to 0.68040 and NZD/USD flat to to 0.62900.
EUR/USD Intraday: Resistance at 1.11500
Our pivot point is at 1.11500
Preferable Price Action: Take short positions below pivot level with targets at 1.11027 & 1.10777 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.11955 & 1.12205.
Comment: Pair below 20MA & 55MA 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: trend Upside
Our pivot point is at 1.25000
Preferable Price Action: Long positions above pivot with targets at 1.25605 & 1.25907 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24362 & 1.24065.
Comment: RSI at overbought level 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 107.900
Preferable Price Action: Short position below pivot with the target at 107.571 and 107.375 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.226 and 108.415.
Comment: Pair above 55MA & 20MA 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
AUD/USD Intraday: Strong trend rise
Our pivot point is at 0.67790
Preferable Price Action: Long positions above pivot with targets at 0.68151 & 0.68402 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.67419 & 0.67173 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 35.20
Preferable Price Action: Buy crude above pivot with targets at 36.50 and 37.00 in extension.
Alternative Price Action: Below pivots sell Oil with 33.99 & 33.48 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 1730.00
Preferable Price Action: Further upside to 1742.09 & 1748.03 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1718.32 and 1712.21.
Comment: RSI at 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: Bias on downside
Our pivot point is at 25570.70
Preferable Price Action: Take sell positions below pivot with targets at 25251.77 & 25061.78 in extension.
Alternative Price Action: Above 25570.70 looks for further upside to 25890.41 & 26068.08.
Comment: Resistance at 25,570 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 produced7