Market Wrap: Stocks, Bonds, Commodities
Wall Street rallied broadly on Wednesday with the Nasdaq approaching record highs as signs of economic recovery from mandated shutdowns helped investors look beyond US social unrest and pandemic worries.
The Dow Jones Industrial Average advanced 528.20 points (2.06%) to 26,270.30, the S&P 500 higher 42.20 points (1.36%) to 3,122.87 and the Nasdaq Composite gained 74.54 points (0.78%) to 9,683.20.
Stronger appetite for riskier assets is set to lift Asian equities on Thursday, as government stimulus expectations support investor confidence in economic recovery from the coronavirus.
MSCI’s index of Asia-Pacific stocks outside Japan surged 0.10% to 636.30 levels. Australian index gained 0.84% to 5,991.20. Japan’s Nikkei rose 0.36% to 22,965.50.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index down 0.37% to 3,257.30, Germany’s DAX slipped 0.47% to 12,428.30 and France’s CAC fell 0.32% to 5,010.25 and U.K.’s FTSE lower 0.20% to 6,369.30.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 1.55% to 0.749.
Oil ended slightly higher on Wednesday but remained below the session’s early highs above $40 a barrel, the highest since March, retreating as doubts emerged about the timing and scale of a potential extension to the pact between OPEC and its allies to cut crude supplies.
Spot Brent crude oil down 1.71% to $39.11 per barrel. US West Texas Intermediate crude futures were slipped 2.17% to $36.48 a barrel.
Yesterday, the Yellow metal fell more than 1.5% to $1700 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 0.33% to 97.580.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.25% today. This left the pairing trading around $1.12030. The pound declined 0.50% to 1.25100.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD lower 0.38% to 0.68920 and NZD/USD flat to 0.64130.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY higher 0.18% to 109.060.
EUR/USD Intraday: Support at 1.11800
Our pivot point is at 1.11800
Preferable Price Action: Take Long positions above pivot level with targets at 1.12250 & 1.12507 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11355 & 1.11099.
Comment: Strong trend on the upside.
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: Temporary trend on downside
Our pivot point is at 1.25500
Preferable Price Action: Short positions below pivot with targets at 1.24653 & 1.24302 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.26334 & 1.26654.
Comment: RSI at the oversold level 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
JPY/USD Intraday: Support at 108.800
Our pivot point is at 108.800
Preferable Price Action: Long position above pivot with the target at 109.328 and 109.526 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.244 and 108.029.
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: Upside strong trend
Our pivot point is at 0.68650
Preferable Price Action: Long positions above pivot with targets at 0.69282 & 0.69582 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68018 & 0.67713 as targets.
Comment: MACD in the negative zone and RSI below 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 36.00
Preferable Price Action: Buy crude above pivot with targets at 37.54 and 38.16 in extension.
Alternative Price Action: Below pivots sell Oil with 34.48 & 33.82 as targets.
Comment: MACD in the negative zone and price above 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: Bias on the upside
Our pivot point is at 1696.00
Preferable Price Action: Further upside to 1711.31 & 1719.57 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1680.67 and 1672.78.
Comment: RSI above 50 level mark and price above 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
Dow Jones Intraday: Bias on the upside
Our pivot point is at 25980.00
Preferable Price Action: Take buy positions above pivot with targets at 26400.16 & 26601.26 in extension.
Alternative Price Action: Below 25980.00 looks for further downside to 25584.14 & 25372.68.
Comment: Price above 20MA and 55MA and RSI at 50 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