Market Wrap: Stocks, Bonds, Commodities
Wall Street’s major indexes tumbled more than 2% on Friday as several US states reimpose business restrictions in response to a surge in coronavirus cases.
The Dow Jones Industrial Average plunged 731.15 points (2.84%) to 25,015.60, the S&P 500 dropped 74.69 points (2.43%) to 3,009.10 and the Nasdaq Composite declined 260.20 points (2.59%) to 9,758.15.
Asian share markets got off to a shaky start on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the US dollar.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.22% to 625.30 levels. Australian index lost 1.51% to 5,815. Japan’s Nikkei fell 2.30% to 21,995.10.
European stocks were lower on Friday, with the Stoxx Europe 50 Index lost 0.46% to 3204.17, Germany’s DAX plunged 0.73% to 12,089.39 and France’s CAC slipped 0.18% to 4,909.64 and U.K.’s FTSE 100 rose 0.28% to 6,163.86.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield advance 1.55% to 0.648.
Oil prices slid for a second straight session on Monday as coronavirus cases rose in the United States and other places, leading some countries to resume partial lockdowns that could hurt fuel demand.
Spot Brent crude oil slipped 1.54% to $40.30 per barrel. US West Texas Intermediate crude futures were fell 1.77% to $37.80 a barrel.
The yellow metal made a new high after eight years. Today, Bullion prices higher 0.30% to $1771.30 per ounce.
Market Wrap: Forex
The dollar struggled to make headway on Monday, and riskier currencies inched ahead, as investor sentiment swung between hopes for global economic recovery and fears that a fresh wave of coronavirus cases could undermine the revival.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.42% today. This left the pairing trading around $1.12650.
The Japanese yen advanced against the U.S. dollar on Wednesday. Today USD/JPY lower 0.15% to 107.070 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.40% to 0.68880 and NZD/USD rose 0.26% to 0.64440.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.12300
Preferable Price Action: Take Long positions above pivot level with targets at 1.12700 & 1.12952 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11903 & 1.11671.
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
GBP/USD Intraday: Break Support Area
Our pivot point is at 1.23765
Preferable Price Action: Short positions below pivot with targets at 1.23206 & 1.22948 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.24354 & 1.24623.
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: Bias on the upside
Our pivot point is at 107.00
Preferable Price Action: Long position above pivot with the target at 107.371 and 107.573 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.638 and 106.438.
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: Resistance at 0.68900
Our pivot point is at 0.68900
Preferable Price Action: Short positions below pivot with targets at 0.68502 & 0.68301 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.69292 & 0.69486 as targets.
Comment: Pair below 55MA & 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 38.45
Preferable Price Action: Sell crude below pivot with targets at 37.20 and 36.61 in extension.
Alternative Price Action: Above pivots buy Oil with 39.62 & 40.21 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 1765.00
Our pivot point is at 1765.00
Preferable Price Action: Further upside to 1775.03 & 1779.45 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1755.41 and 1750.83.
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 25,250
Our pivot point is at 25250.00
Preferable Price Action: Take sell positions below pivot with targets at 24858.29 & 24607.27 in extension.
Alternative Price Action: Above 25250.00 looks for further upside to 25646.30 & 25904.67.
Comment: Price below 55MA 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