Market Wrap: Stocks, Bonds, Commodities
American major stock market indices closed higher on Friday as bargain hunters come back into the market following sharp fell on Thursday but all three major indices suffered their biggest weekly declines since March.
The Dow Jones Industrial Average higher 476.80 points (1.89%) to 25,604.80, the S&P 500 advanced 1.32%, to 3,041.40 and the Nasdaq Composite gained 97 points (1.00%) to 9,589.20.
Asian major markets started the week on the downside on Monday as fears of a second wave of coronavirus infections in China and USA sent Traders to hurray to buy for safe-havens.
MSCI’s index of Asia-Pacific stocks outside Japan down 1.91% to 627.20 levels. Australian index slipped 1.88% to 5,737.80. Japan’s Nikkei plunged 3.49% to 21,527.50
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 0.29% to 3,153.74, Germany’s DAX lost 0.18% to 11,949.28 and France’s CAC gain 0.49% to 4,874.03 and U.K.’s FTSE 100 advanced 0.47% to 6,105.18.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield plunged 6.15% to 0.656.
Crude Oil fell more than 2% on Monday, extending losses from last week, as new coronavirus infections hit China and the United States, raising the prospect that renewed outbreaks of the virus could weigh on the recovery of fuel demand.
Spot Brent crude oil down 3.36% to $37.43 per barrel. US West Texas Intermediate crude futures were plunged 4.50% to $34.56 a barrel.
Today, Bullion prices slipped 0.80% to $1719.20 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 97.350.
The Euro US Dollar (EUR/USD) widely traded pair lost 0.20% today. This left the pairing trading around $1.12330. The pound traded 0.65% lower to 1.24660.
The Japanese yen rose against the U.S. dollar on Monday as demand for safe currency rose. Today US/JPY lost 0.15% to 107.220.
The Australian and New Zealand dollars lost value against US dollar on Monday as fears of a second wave of the coronavirus in the world encourage traders to sell currencies sensitive to risk.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD fell 0.98% to 0.67950 and NZD/USD down 0.75% to 0.63990.
EUR/USD Intraday: Resistance at 1.12700
Our pivot point is at 1.12700
Preferable Price Action: Take Short positions below pivot level with targets at 1.12065 & 1.11803 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13367 & 1.13626.
Comment: Trend continues down from 1.14000
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 downside
Our pivot point is at 1.25300
Preferable Price Action: Short positions below pivot with targets at 1.24303 & 1.24000 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.26262 & 1.26577.
Comment: Price below 20MA & 55MA 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
USD/JPY Intraday: Temporary pullback
Our pivot point is at 107.000
Preferable Price Action: Long position above pivot with the target at 107.523 and 107.756 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.492 and 106.255.
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: Break support level
Our pivot point is at 0.68300
Preferable Price Action: Short positions below pivot with targets at 0.67630 & 0.67380 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.68955 & 0.69208 as targets.
Comment: MACD in the negative 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: Bias on Upside
Our pivot point is at 34.30
Preferable Price Action: Buy crude above pivot with targets at 35.30 and 35.80 in extension.
Alternative Price Action: Below pivots sell Oil with 33.36 & 32.87 as targets.
Comment: Bias on the upside for Oil as trend 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
XAU/USD Intraday: Break support area
Our pivot point is at 1728.00
Preferable Price Action: Further downside to 1715.07 & 1710.01 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1741.10 and 1746.03.
Comment: RSI below 50 level mark 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
Dow Jones Intraday: Strong trend on downside
Our pivot point is at 25100.00
Preferable Price Action: Take sell positions below pivot with targets at 24454.07 & 24208.47 in extension.
Alternative Price Action: Above 25100.00 looks for further upside to 25760.66 & 26011.17.
Comment: Price below 20MA and 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 produced7