Market Wrap: Stocks, Bonds, Commodities
American major stock indices finished lower on Wednesday after the Federal Reserve worried that the US economic recovery from the devastating effects of the pandemic faced a highly uncertain path.
Dow Jones Industrial Average closed 85.19 points lower (0.31%) to 27,692.88, the S&P 500 lost 14.93 points (0.44%) to 3,374.85 and the Nasdaq Composite dropped 64.38 points (0.57%) to 11,146.46.
Asian equities were set to follow Wall Street’s late session retreat on Thursday after the Federal Reserve warned the US economy faced a highly uncertain path to recovery from the coronavirus-induced downturn.
MSCI’s index of Asia-Pacific stocks outside Japan lost 1.82% to 705.20 levels. Australian index fell 0.77% to 6,120.00. Japanese Nikkei plunged 1.00% to 22,880.62.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index rose 0.85% to 3,317.62, Germany’s DAX gained 0.74% to 12,977.33 and France’s CAC up 0.79% to 4,977.23 and U.K.’s FTSE 100 rose 0.58% to 6,111.98.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.88% to 0.662.
Oil prices fell on Thursday as major producers warned of a risk to the recovery in demand if the coronavirus crisis is prolonged, while U.S. crude inventories dropped less than expected.
Spot Brent crude Oil fell 0.75% to $45.03 per barrel. US West Texas Intermediate crude futures were down 0.88% to $42.73 a barrel.
The yellow metal slipped on Thursday, traded 0.83% lower to $1947.55 per ounce.
Market Wrap: Forex
The dollar clung to overnight gains on Thursday, after minutes from last month’s U.S. Federal Reserve meeting gave few clues about whether an even more dovish shift in its policy framework is possible in the autumn, disappointing some dollar bears.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.15% to 93.028.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.10% today. This left the pairing trading around $1.18430.
The Japanese yen rose against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY flat to 106.080 level.
Other commodity related currency broadly higher against U.S dollar, AUD/USD down 0.15% to 0.71720 and NZD/USD flat to 0.65560.
EUR/USD Intraday: Minor Trend on downside
Our pivot point is at 1.18640
Preferable Price Action: Take Short positions below level with targets at 1.18150 & 1.17906 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.19135 & 1.19388.
Comment: Pair 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
GBP/USD Intraday: Strong trend downside
Our pivot point is at 1.31150
Preferable Price Action: Short positions below pivot with targets at 1.30478 & 1.30227 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31820 & 1.32077.
Comment: Price below 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 upside
Our pivot point is at 105.700
Preferable Price Action: Long position above pivot with the target at 106.350 and 106.600 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.446 and 105.186.
Comment: price above 20MA & 55MA and RSI aove 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: Resistance at 0.71920
Our pivot point is at 0.71920
Preferable Price Action: Short positions below pivot with targets at 0.71401 & 0.71152 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72432 & 0.72672 as targets.
Comment: Pair below its 22MA & 55MA and RSI at oversold 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: Support at 42.60
Our pivot point is at 42.60
Preferable Price Action: Buy crude above pivot with targets at 42.97 and 43.15 in extension.
Alternative Price Action: Below pivots sell Oil with 42.22 & 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: Bias on the downside
Our pivot point is at 1955.00
Preferable Price Action: Further downside to 1932.58 & 1920.10 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1978.13 and 1990.33.
Comment: RSI below 50 levels and price below its 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: Resistance at 27,675
Our pivot point is at 27675.50
Preferable Price Action: Take sell positions below pivot with targets at 27400.39 & 27258.81 in extension.
Alternative Price Action: Above 27675.50 looks for further upside to 27954.84 & 2096.43.
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