Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed nominally higher on Thursday as investors weighed a resurgence in coronavirus infections and the possibility of a new round of shutdowns as well as data that suggested the US economy might not bounce back with quick, V-shaped recovery.
The Dow Jones Industrial Average fell 39.51 points (0.15%) to 26,080.1, the S&P 500 gained 1.85 points (0.06%) to 3,115.34 and the Nasdaq Composite added 32.52 points (0.33%) to 9,943.05.
Asian stocks were set for gains on Friday although trade was likely to be choppy after a mixed Wall Street session with investor focus swinging between concerns about a second pandemic wave and more upbeat hopes about an economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan higher 0.50% to 649.50 levels. Australian index slipped 0.10% to 5,925. Japan’s Nikkei gain 0.55% to 22,478.79.
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.55% to 3,136.40, Germany’s DAX lost 0.81% to 12,281.53 and France’s CAC fell 0.75% to 4,958.75 and U.K.’s FTSE 100 down 0.47% to 6,224.07.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 2.33% to 0.710.
Oil prices pushed higher in early trade on Friday, building on gains in the previous session, after OPEC producers and allies promised to meet their supply cut commitments and two major oil traders said demand was recovering well.
Spot Brent crude Oil advanced 1.47% to $42.12 per barrel. US West Texas Intermediate crude futures were rose 1.57% to $39.44 a barrel.
Today, Bullion prices higher 0.45% to $1730.20 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.10% to 97.328.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.15% today. This left the pairing trading around $1.12170. The pound traded 0.20% higher to 1.24460.
The Japanese yen fell against the U.S. dollar on Tuesday as demand for risky currency rose. Today US/JPY lost 0.10% to 106.880.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD gained 0.25% to 0.68680 and NZD/USD flat to 0.64250.
EUR/USD Intraday: Support at 1.11950
Our pivot point is at 1.11950
Preferable Price Action: Take Long positions above pivot level with targets at 1.12370 & 1.12622 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11529 & 1.11298.
Comment: Pair above 20MA & 55MAand 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.24100
Preferable Price Action: Long positions above pivot with targets at 1.24804 & 1.25220 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23483 & 1.23127.
Comment: Price above 20MA 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
USD/JPY Intraday: Trend downside
Our pivot point is at 107.140
Preferable Price Action: Short position below pivot with the target at 106.651 and 106.404 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.614 and 107.859.
Comment: Pair below 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: In consolidation zone
Our pivot point is at 0.68440
Preferable Price Action: Long positions above pivot with targets at 0.68950 & 0.69207 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.67930 & 0.67685 as targets.
Comment: MACD in the negative zone 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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 39.00
Preferable Price Action: Buy crude above pivot with targets at 40.10 and 40.61 in extension.
Alternative Price Action: Below pivots sell Oil with 37.90 & 37.38 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: Resistance at 1735.00
Our pivot point is at 1735.00
Preferable Price Action: Further downside to 1723.17 & 1717.61 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1723.17 and 1717.61.
Comment: RSI above 50 level mark and above 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: Strong trend on upside
Our pivot point is at 25960.00
Preferable Price Action: Take buy positions above pivot with targets at 26422.03 & 26671.14 in extension.
Alternative Price Action: Below 25960.00looks for further downside to 25485.21 & 25232.58.
Comment: Price 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 produced7