Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed at a record high on Tuesday, rebounding from huge losses triggered by the coronavirus pandemic and crowning one of the most dramatic recoveries in the index’s history.
The Dow Jones Industrial Average fell 66.84 points (0.24%) to 27,778.07, the S&P 500 gained 7.79 points (0.23%) to 3,389.78 and the Nasdaq Composite added 81.12 points (0.73%) to 11,210.84.
Asian equities were mostly firmer on Wednesday after a strong Wall Street session in which the S&P 500 hit an all-time high, rebounding from huge losses caused by the coronavirus pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan lost 0.41% to 719.10 levels. Australian index rose 0.72% to 6,167.60. Japanese Nikkei up 0.26% to 23,110.60.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 0.30% to 3,297.15, Germany’s DAX gained 0.20% to 12,908.25 and France’s CAC up 0.35% to 4,955.93 and U.K.’s FTSE 100 rose 0.20% to 6,087.66.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.25% to 0.654.
Oil prices slid on Wednesday as concerns grew that U.S. fuel demand may not recover quickly amid stalled talks on a post-coronavirus economic stimulus package, overshadowing a bigger-than-expected drawdown in U.S. crude stocks.
Spot Brent crude Oil fell 0.70% to $45.14 per barrel. US West Texas Intermediate crude futures were down 0.65% to $42.85 a barrel.
The yellow metal slipped on Wednesday, traded 0.81% lower to $1988.20 per ounce.
Market Wrap: Forex
The dollar struggled to recoup heavy overnight losses on Wednesday after it slipped to 27-month low the previous session as uncertainties about an economic recovery and the U.S. fiscal stimulus package weighed.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.10% to 92.315.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.05% today. This left the pairing trading around $1.19320.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.10% to 105.520 level.
Other commodity related currency broadly higher against U.S dollar, AUD/USD up 0.18% to 0.72530 and NZD/USD gained 0.36% to 0.66230.
EUR/USD Intraday: Major trend upside
Our pivot point is at 1.19200
Preferable Price Action: Take Long positions above level with targets at 1.19564 & 1.19776 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18834 & 1.18602.
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: Strong trend upside
Our pivot point is at 1.32330
Preferable Price Action: Long positions above pivot with targets at 1.32803 & 1.33059 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.31833 & 1.31564.
Comment: Price above 55MA & 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: Trend on downside
Our pivot point is at 105.700
Preferable Price Action: Short position below pivot with the target at 105.305 and 105.050 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.094 and 106.357.
Comment: price below 20MA & 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 produced
AUD/USD Intraday: Support at 0.72340
Our pivot point is at 0.72340
Preferable Price Action: Long positions above pivot with targets at 0.72753 & 0.73000 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71901 & 0.71647 as targets.
Comment: Pair above its 22MA & 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: Break resistance level
Our pivot point is at 42.60
Preferable Price Action: Buy crude above pivot with targets at 43.00 and 43.20 in extension.
Alternative Price Action: Below pivots sell Oil with 42.21 & 42.00 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Support at 1977.20
Our pivot point is at 1977.20
Preferable Price Action: Further upside to 1995.39 & 2005.73 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1958.78 and 1947.74.
Comment: RSI at oversold levels and price below 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: Bias on the downside
Our pivot point is at 27920.00
Preferable Price Action: Take sell positions below pivot with targets at 27671.25 & 27573.27 in extension.
Alternative Price Action: Above 27920.00 looks for further upside to 28154.23 & 28246.32.
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 produced7