Market Wrap: Stocks, Bonds, Commodities
American major stock index closed higher on Wednesday, after better than expected economic data, with sentiment boost by signs that a COVID-19 fiscal relief package may pass by end of the week.
Dow Jones Industrial Average was gained 309.60 points (1.16%) at 27,138.10, the S&P 500 rose 18.13 points (0.55%) at 3,324.70. The Nasdaq Composite higher 33.10 points (0.30%) at 10,974.21.
Asian major equity indices mixed on Thursday after US and European equities rose overnight on strong earnings results and good economic data from the United states.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.10% to 720.50 levels. Australian index rose 0.68% to 6,042.20 Japanese market lost 0.54% to 22,393.00.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index higher 0.43% to 3,268.38, Germany’s DAX rose 0.47% to 12,660.25 and France’s CAC gained 0.90% to 4,933.34 and U.K.’s FTSE 100 up 1.14% to 6,104.72.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.94% to 0.538.
Crude Oil prices rose to their highest level since March on Wednesday after American crude stockpile fell sharply and the dollar lose their value, but jumping coronavirus spread put traders worried about the demand outlook.
Spot Brent crude oil gained 0.80% to $45.53 per barrel. US West Texas Intermediate crude futures were up 0.57% to $42.44 a barrel.
The yellow metal rose continuously from $1700 level. Today traded 0.67% higher to $2048.50 per ounce.
Market Wrap: Forex
The dollar fell on Thursday as worries the U.S. economic rebound may lagging other countries due to a high level of coronavirus spread, correctly dollar at two-year low level.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.27% to 92.597.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.28% today. This left the pairing trading around $1.18930.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY slipped 0.10% to 105.480 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.22% to 0.72070 and NZD/USD flat to 0.66430.
EUR/USD Intraday: Strong trend on the upside
Our pivot point is at 1.18520
Preferable Price Action: Take Long positions above level with targets at 1.19084 & 1.19380 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17947 & 1.17636.
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: Break Resistance level
Our pivot point is at 1.31470
Preferable Price Action: Long positions above pivot with targets at 1.31959 & 1.32250 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.30937 & 1.30633.
Comment: Price above 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: Bias on the upside
Our pivot point is at 105.360
Preferable Price Action: Long position above pivot with the target at 105.751 and 106.008 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.985 and 104.739.
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 0.71880
Preferable Price Action: Long positions above pivot with targets at 0.72200 & 0.72402 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71550 & 0.71338 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 42.00
Preferable Price Action: Buy crude above pivot with targets at 42.95 and 43.45 in extension.
Alternative Price Action: Below pivots sell Oil with 41.03 & 40.52 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 2044.00
Preferable Price Action: Further upside to 2060.94 & 2069.46 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 2026.50 and 2017.33.
Comment: RSI at the 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 27140.00
Our pivot point is at 27140.00
Preferable Price Action: Take buy positions above pivot with targets at 27414.08 & 27585.55 in extension.
Alternative Price Action: Below 27140.00 looks for further downside to 26862.90 & 26679.17.
Comment: Price 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 produced7