Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve’s new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.
The Dow Jones Industrial Average rose 160.40 points (0.57%) to 28,492.30, the S&P 500 gained 5.82 points (0.17%) to 3,484.55 and the Nasdaq Composite dropped 39.72 points (0.34%) to 11,625.34.
Asian equities are likely to have a bumpy ride on Friday after US stocks scaled new peaks for a third straight day and bond yields surged on the Federal Reserve’s average-inflation strategy, as well as a promising development in curbing the coronavirus pandemic.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.53% to 737.50 levels. Australian index down 0.86% to 6,073.80. Japanese Nikkei fell 1.41% to 22,882.65.
European stocks were mixed on Friday, with the Stoxx Europe 50 Index lost 0.37% to 3,316.75, Germany’s DAX fell 0.34% to 13,050.50 and France’s CAC slipped 0.41% to 4,995.43 and U.K.’s FTSE 100 flat to 5,992.44.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield surged 3.04% to 0.769.
Oil prices fell in early trade on Friday as a massive hurricane raced inland past the heart of the U.S. oil industry in Louisiana and Texas, with a storm surge weaker than predicted.
Spot Brent crude oil fell 0.46% to $45.39 per barrel. US West Texas Intermediate crude down 0.53% to $42.83 a barrel.
The yellow metal traded 1.30% higher to 1950.15 dollars per ounce.
Market Wrap: Forex
The dollar held gains against major currencies on Friday, after the Federal Reserve’s aggressive new strategy to lift employment and increased tolerance for higher inflation pushed U.S. bond yields up.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.52% to 92.502.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.60% today. This left the pairing trading around $1.18890.
The Japanese yen gained against the U.S. dollar on Friday as stock pushes higher. Today US/JPY down 0.47% to 106.050 level.
Other commodity-related currency gained against U.S dollar, AUD/USD rose 0.73% to 0.73120 and NZD/USD advance 0.60% to 0.66760.
EUR/USD Intraday: Break resistance level
Our pivot point is at 1.18470
Preferable Price Action: Take Long positions above level with targets at 1.19000 & 1.19300 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17925 & 1.17621.
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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.32340
Preferable Price Action: Long positions above pivot with targets at 1.33007 & 1.33304 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.31626 & 1.31321.
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: Break support zone
Our pivot point is at 106.400
Preferable Price Action: Short position above pivot with the target at 105.800 and 105.552 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.974 and 107.225.
Comment: price below 20MA & 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
AUD/USD Intraday: Major Trend upside
Our pivot point is at 0.72830
Preferable Price Action: Long positions above pivot with targets at 0.73402 & 0.73668 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72215 & 0.71928 as targets.
Comment: Pair above its 55MA & 20MA 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
CRUDEOIL Intraday: support at 42.85
Our pivot point is at 42.85
Preferable Price Action: Buy crude above pivot with targets at 43.35 and 43.64 in extension.
Alternative Price Action: Below pivots sell Oil with 42.37 & 42.06 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1938.35
Preferable Price Action: Further upside to 1956.60 & 1965.73 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1919.88 and 1910.14.
Comment: RSI above 50 levels and price above 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: Support at 28,530
Our pivot point is at 28530.00
Preferable Price Action: Take buy positions above pivot with targets at 28780.00 & 28900.00 in extension.
Alternative Price Action: Below 28530.00 looks for further downside to 28270.00 & 28140.00.
Comment: Price above its 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 produced7