Market Wrap: Stocks, Bonds, Commodities
American major stock index closed higher on Tuesday, supported by technology stocks while traders awaited for more U.S. government relief package to fight economic fallout from the coronavirus pandemic.
The Dow Jones Industrial Average climbed 0.63% to end at 26,828.50 points, while the S&P 500 higher 0.37% to 3,306.43. The Nasdaq Composite gained 0.36% to 10,941.20.
Asian major equity indices higher on Wednesday, following overnight gain on Wall Street and better economic data.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.68% to 716.80 levels. Australian index fell 0.60% to 6,001.10 Japanese market lost 0.31% to 22,503.50.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index higher 0.18% to 3,254.29, Germany’s DAX down 0.36% to 12,600.87 and France’s CAC higher 0.28% to 4,889.52 and U.K.’s FTSE 100 flat to 6,036.00.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 1.03% to 0.518.
Crude oil gained on Tuesday on hopes the United States is making conservatives progress on a new economic stimulus package, as well as curbing the coronavirus spread on the major state of America.
Spot Brent crude oil gained 0.14% to $44.48 per barrel. US West Texas Intermediate crude futures were flat to $41.70 a barrel.
The yellow metal ends above $2,000 for the first time in history as U.S. dollar and bond yields fell. Today traded 1.10% higher to $2023 per ounce.
Market Wrap: Forex
The dollar index continuously sliding since March, as central bank liquidity measures and as demand tumble for the world’s reserve currency.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.17% to 93.218.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.10% today. This left the pairing trading around $1.18030.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.10% to 105.730 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.26% to 0.71790 and NZD/USD rose 0.17% to 0.66330.
EUR/USD Intraday: Strong trend on the upside
Our pivot point is at 1.17940
Preferable Price Action: Take Long positions above level with targets at 1.18454 & 1.18701 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17429 & 1.17164.
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: Resistance at 1.31070
Our pivot point is at 1.31070
Preferable Price Action: Short positions below pivot with targets at 1.30545 & 1.30248 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31596 & 1.31877.
Comment: Price below 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: major Trend downside
Our pivot point is at 105.950
Preferable Price Action: Short position below pivot with the target at 105.353 and 105.100 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.524 and 106.752.
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 produced
AUD/USD Intraday: Trend upside
Our pivot point is at 0.71700
Preferable Price Action: Long positions above pivot with targets at 0.72170 & 0.72423 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71239 & 0.70977 as targets.
Comment: Pair above its 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: Break resistance area
Our pivot point is at 41.55
Preferable Price Action: Buy crude above pivot with targets at 42.35 and 42.75 in extension.
Alternative Price Action: Below pivots sell Oil with 40.76 & 40.34 as targets.
Comment: Crude above Its 20MA & 55MA and RSI at overbought 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: Surpass $2000 hurdle
Our pivot point is at 2022.00
Preferable Price Action: Further upside to 2036.51 & 2044.23 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 2008.29 and 2000.06.
Comment: RSI at overbought level 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: Support at 26810.00
Our pivot point is at 26810.00
Preferable Price Action: Take buy positions above pivot with targets at 27110.04 & 27256.92 in extension.
Alternative Price Action: Below 26810.00 looks for further downside to 26493.82 & 26350.10.
Comment: Price above 20MA & 55MA and RSI at overvought 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