Market Wrap: Stocks, Bonds, Commodities
US major three indices closed in lower on Wednesday and suffered their biggest daily percentage plunge in last two weeks as a spike in some American states coronavirus cases intensified worried of another round of lockdowns and expanding economic damage.
The Dow Jones Industrial Average plunged 711 point (2.73%) to 25,446.15, the S&P 500 fell 81.15 points (2.60%) to 3,050.35 and the Nasdaq Composite declined 222.50 points (2.20%) to 9,910.15.
Asian markets were set to follow a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund’s downgrade to global economic projections shook confidence in a recovery.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.65% to 654.30 levels. Australian index rose 0.22% to 5,967.60. Japan’s Nikkei fell 1.20% to 22,269.50.
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index lost 3.11% to 3,196.12, Germany’s DAX plunged 3.43% to 12,093.76 and France’s CAC slipped 2.92% to 4,871.36 and U.K.’s FTSE 100 down 3.11% to 6,123.69.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 1.45% to 0.674.
Crude Oil rate slumped over 5% on Wednesday night, after U.S. crude stockpile better than estimated and spike in coronavirus cases in countries like Germany and surged in populated areas of America.
Spot Brent crude Oil slipped 1.10% to $39.89 per barrel. US West Texas Intermediate crude futures were fell 0.90% to $37.68 a barrel.
The yellow metal made new high after eight years. Today, Bullion prices higher 0.10% to $1763.50 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 0.13% to 101.770.
The Euro US Dollar (EUR/USD) widely traded pair declined 0.15% today. This left the pairing trading around $1.12460.
The Japanese yen advanced against the U.S. dollar on Wednesday. Today USD/JPY higher 0.15% to 107.180 level.
Other commodity-related currency broadly mixed against U.S dollar, AUD/USD down 0.10% to 0.68710 and NZD/USD rose 0.26% to 0.64240.
EUR/USD Intraday: Resistance at 1.12640
Our pivot point is at 1.12640
Preferable Price Action: Take Short positions below pivot level with targets at 1.12174 & 1.11927 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13087 & 1.13318.
Comment: Pair 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
GBP/USD Intraday: Break Support Area
Our pivot point is at 1.24410
Preferable Price Action: Short positions below pivot with targets at 1.23901 & 1.23659 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.24915 & 1.25159.
Comment: Price 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
USD/JPY Intraday: Support at 106.990
Our pivot point is at 106.990
Preferable Price Action: Long position above pivot with the target at 107.380 and 107.628 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.583 and 106.321.
Comment: Pair above 20MA & 55MA 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: Bias on upside
Our pivot point is at 0.68510
Preferable Price Action: Long positions above pivot with targets at 0.68903 & 0.69151 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68102 & 0.67870 as targets.
Comment: Pair above 20MA 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 change to down
Our pivot point is at 38.40
Preferable Price Action: Sell crude below pivot with targets at 37.08 and 36.36 in extension.
Alternative Price Action: Above pivots buy Oil with 39.74 & 40.40 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Support at 1760.10
Our pivot point is at 1760.00
Preferable Price Action: Further upside to 1773.25 & 1779.10 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1747.11 and 1740.97.
Comment: RSI above 50 level mark and 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: Resistance at 25550
Our pivot point is at 25550.00
Preferable Price Action: Take sell positions below pivot with targets at 25203.65 & 25000.35 in extension.
Alternative Price Action: Above 25550.00 looks for further upside to 25902.86 & 26088.05.
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 produced7