Market Wrap: Stocks, Bonds, Commodities
The American major stock indices slightly fell on Thursday as investors took profits in advance of Friday’s jobs report, ending a four-day advance driven by the rising economic prospect.
The Dow Jones Industrial Average higher 0.07%, to 26,280.95, the S&P 500 fell 10.52 points (0.34%) to 3,113.20 and the Nasdaq Composite down 0.70%, to 9,616.30.
The U.S. unemployment rate is forecast to 19.8%, a post-World War Two record, from 14.7% in April.
Asian major indices were in tight ranges on Friday as traders awaited key U.S. jobs data later today while sustained hopes about a global economic recovery kept the pressure on the safe-haven dollar.
MSCI’s index of Asia-Pacific stocks outside Japan surged 0.66% to 642.50 levels. Australian index gained 0.12% to 5,998.70. Japan’s Nikkei rose 0.72% to 22,860.00.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index down 0.24% to 3,261.67, Germany’s DAX slipped 0.45% to 12,430.56 and France’s CAC fell 0.21% to 5,011.98 and U.K.’s FTSE lower 0.64% to 6,341.44.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 2.87% to 0.844.
Crude Oil was rose on Friday with straight six week gain from the crude market as most of the world economy start to reopen but further uncertainty rises as to whether OPEC will commit to extending future production cuts after the current cuts expire at the end of June.
The yellow metal was down on Friday, giving up some of its gains from the previous session.
Spot gold traded at $1,713.70 per ounce.
Market Wrap: Forex
The US dollar index, which measures the greenback against a basket of major currencies, is post its third straight weekly value loss.
The euro was last at $1.1329 after hitting a 12-week high of $1.1361 on Thursday after the European Central Bank (ECB) increased the size of its bond purchases by a larger-than-expected 600 billion euros to 1350 billion dollars.
The risk-sensitive Australian dollar hovered near a five-month peak at $0.6941 and was on track for its third straight weekly rise.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY higher 0.21% to 109.360.
EUR/USD Intraday: Support at 1.13300
Our pivot point is at 1.13300
Preferable Price Action: Take Long positions above pivot level with targets at 1.14107 & 1.14487 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12502 & 1.12096.
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: Trend on upside
Our pivot point is at 1.26300
Preferable Price Action: Long positions above pivot with targets at 1.26888 & 1.27308 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.25674 & 1.25232.
Comment: RSI at the overbought level 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
JPY/USD Intraday: Support at 109.050
Our pivot point is at 109.050
Preferable Price Action: Long position above pivot with the target at 109.560 and 109.812 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.530 and 108.260.
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: Break previous resistnace
Our pivot point is at 0.69700
Preferable Price Action: Long positions above pivot with targets at 0.70274 & 0.70574 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.69103 & 0.68788 as targets.
Comment: MACD in the positive zone 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
CRUDEOIL Intraday: Trend rise continuesly
Our pivot point is at 37.20
Preferable Price Action: Buy crude above pivot with targets at 38.30 and 38.80 in extension.
Alternative Price Action: Below pivots sell Oil with 36.09 & 35.59 as targets.
Comment: MACD in the positive 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 downside
Our pivot point is at 1720.00
Preferable Price Action: Further downside to 1702.70 & 1694.49 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1737.19 and 1744.99.
Comment: RSI below 50 level mark and price below 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: Trend on the upside
Our pivot point is at 26370.00
Preferable Price Action: Take buy positions above pivot with targets at 26735.26 & 26934.77 in extension.
Alternative Price Action: Below 26370.00 looks for further downside to 25993.99 & 25787.30.
Comment: Price above 20MA and 55MA and RSI at oversold 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