Market Wrap: Stocks, Bonds, Commodities
American major stock indices closed lower on Tuesday as traders worried about weakening consumer confidence in the US, worst than expected financial results and as investors have doubt about coronavirus aid package release by congress.
Today Fed announces decision on the Interest rate and their economic outlook and expectation is that fed to strike a dovish stance at its policy review.
The Dow Jones Industrial Average plunged 205.50 points (0.78%) to 26,379.28, the S&P 500 decline 21.00 points (0.65%) to 3,218.50 and the Nasdaq Composite slipped 135.80 points (1.28%) to 10,402.10.
Asian major equities index mixed on Wednesday as in US congress not agreed on economic stimulus package pushed global stocks lower and sent traders into safe-haven assets like gold and Japanese yen.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.10% to 700.50 levels. Australian index fell 0.23% to 6,006.40 Japanese market lost 1.15% to 22,397.11.
European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index rose 0.10% to 3,303.56, Germany’s DAX flat to 12,835.28 and France’s CAC fell 0.22% to 4,928.94 and U.K.’s FTSE 100 advance 0.40% to 6,129.26.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.64% to 0.577.
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Spot Brent crude oil rose 0.44% to $43.80 per barrel. US West Texas Intermediate crude futures were gain 0.32% to $41.17 a barrel.
The yellow metal gained on Wednesday, traded 0.50% higher to $1956.80 per ounce.
Market Wrap: Forex
The dollar stays at two years lows on Wednesday as the United States struggled to contain a spike in COVIS-19 cases, ease hopes for a quick economic rebound.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.16% to 93.767.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.26% today. This left the pairing trading around $1.17440.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY fell 0.14% to 104.970 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.20% to 0.71170 and NZD/USD flat to 0.66610.
EUR/USD Intraday: Support at 1.17160
Our pivot point is at 1.17160
Preferable Price Action: Take Long positions above level with targets at 1.17730 & 1.17988 in extension.
Alternative Price Action: Below pivot level looks for further downside at 1.16576 & 1.16309.
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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.29180
Preferable Price Action: Long positions above pivot with targets at 1.29552 & 1.29757 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28812 & 1.28566.
Comment: Price above 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: Resistance at 105.240
Our pivot point is at 105.240
Preferable Price Action: Short position below pivot with the target at 104.792 and 104.591 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.695 and 105.907.
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
AUD/USD Intraday: Support at 0.71520
Our pivot point is at 0.71520
Preferable Price Action: Long positions above pivot with targets at 0.71937 & 0.72132 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71076 & 0.70863 as targets.
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
CRUDEOIL Intraday: Bias on the upside
Our pivot point is at 40.85
Preferable Price Action: Buy crude above pivot level with targets at 41.64 and 42.00 in extension.
Alternative Price Action: Below pivots sell Oil with 40.07 & 39.69 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Support at 1948
Our pivot point is at 1948.00
Preferable Price Action: Further upside to 1967.23 & 1977.91 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1928.67 and 1917.42.
Comment: MACD in the positive zone and price above its 55MA & 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 26500.00
Our pivot point is at 26500.00
Preferable Price Action: Take sell positions below pivot with targets at 26284.43 & 26155.75 in extension.
Alternative Price Action: Above 26500.00 looks for further upside to 26718.70 & 26844.70.
Comment: RSI at 50 levels 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