Market Wrap: Stocks, Bonds, Commodities
American major stock indices advance on Wednesday and the Nasdaq index hit a record closing high, pushed by technology stocks as early signs of an economic rebound offset concern about further lockdowns due to a jump in coronavirus cases across the America states.
The Dow Jones Industrial Average advance 178 points (0.69%) to 26,067.28, the S&P 500 higher 24.62 points (0.78%) at 3,169.94 and the Nasdaq Composite rose 149 points (1.45%) at 10,493.50.
Asian indices were expected to gain on Thursday, as hopes of a faster than expected economic recovery offset concerns over flare-ups in the coronavirus pandemic, and as investors looked ahead to earnings season.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.60% to 704.50 levels. Australian index higher 0.59% to 5,955.00. Japan’s Nikkei gained 0.22% to 22,555.00
European stocks were lower on Wednesday, with the Stoxx Europe 50 Index fell 1.07% to 3,286.10, Germany’s DAX down 0.97% to 12,494.81 and France’s CAC slipped 1.24% to 4,981.13 and U.K.’s FTSE 100 down 0.55% to 6,156.30.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.30% to 0.651.
Oil prices barely moved in early trade on July 9 as positive momentum from signs of a recovery in US gasoline demand were tempered by concerns over renewed lockdowns with COVID-19 infections surging in the country.
Spot Brent crude Oil fell 0.25% to $43.19 per barrel. US West Texas Intermediate crude futures were down 0.32% to $40.77 a barrel.
Gold continuously rose from last one month and made $1817 high after 9 years.
Market Wrap: Forex
The dollar fell against most currencies on Thursday as a rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.15% to 96.260.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.25% today. This left the pairing trading around $1.13550.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY flat to 107.230 level.
Other commodity related currency broadly higher against U.S dollar, AUD/USD flat to 0.69820 and NZD/USD rose 0.12% to 0.65810.
EUR/USD Intraday: Support at 1.13400
Our pivot point is at 1.13400
Preferable Price Action: Take Long positions above level with targets at 1.13842 & 1.14083 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12963 & 1.12710.
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: Support at 1.26130
Our pivot point is at 1.26130
Preferable Price Action: Long positions above pivot with targets at 1.26680 & 1.26936 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.25551 & 1.25299.
Comment: Price above 20MA & 55MA 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: Bias on the downside
Our pivot point is at 107.400
Preferable Price Action: Short position below pivot with the target at 107.002 and 106754 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.787 and 108.019.
Comment: Pair below 20MA & 55MA and MACD in the negative zone.
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 0.70080
Our pivot point is at 0.70080
Preferable Price Action: Short positions below pivot with targets at 0.69660 & 0.69414 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.70478 & 0.70719 as targets.
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
CRUDEOIL Intraday: Resistance at 41.15
Our pivot point is at 41.15
Preferable Price Action: Sell crude below pivot with targets at 40.55 and 40.20 in extension.
Alternative Price Action: Above pivots buy Oil with 41.68 & 42.02 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Strong Trend Upside
Our pivot point is at 1807.20
Preferable Price Action: Further upside to 1819.52 & 1826.74 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1794.68 and 1787.43.
Comment: RSI above 50 level mark and price above its 20MA & 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: In consolidation zone
Our pivot point is at 25910.00
Preferable Price Action: Take buy positions above pivot with targets at 26256.32 & 26445.73 in extension.
Alternative Price Action: Below 25910.00 looks for further downside to 25559.51 & 25361.74.
Comment: Price 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 produced7