Market Wrap: Stocks, Bonds, Commodities
The Nasdaq closed lower on Friday though well above its session low as selling eased late in the day after investors dumped heavyweight technology stocks due to concerns about high valuations and a patchy economic
The Dow Jones Industrial Average fell 159.42 points (0.56%) to close at 28,133.31, the S&P 500 lost 2811 points (0.81%) to 3,426.96 and the Nasdaq Composite dropped 144.97 points (1.27%) to 11,313.13.
Asian shares started Monday on the backfoot as investors grapple with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply.
MSCI’s index of Asia-Pacific stocks outside Japan lower 0.44% to 717.50 levels. Australian index advances 0.33% to 5,944.80. Japanese Nikkei fell 0.50% to 23,089.95.
European stocks were higher on Monday, with the Stoxx Europe 50 Index gained 0.55% to 3,278.45, Germany’s DAX rose 0.63% to 12,925.30 and France’s CAC up 0.63% to 4,996.30 and U.K.’s FTSE 100 surged 0.92% to 5,851.25.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 0.24% to 0.721.
Oil prices dropped more than 1% on Monday after earlier hitting their lowest since July as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months while optimism about demand recovery cooled amid the coronavirus pandemic.
Spot Brent crude oil fell 1.55% to $42.00 per barrel. US West Texas Intermediate crude lost 1.80% to $39.05 a barrel.
The yellow metal traded 0.05% higher to 1929.50 dollars per ounce.
Market Wrap: Forex
The dollar steadied in holiday-thinned trade on Monday after U.S. jobs data showed job growth slowed further in August, while traders shifted their focus to the European Central Bank’s meeting on Thursday.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.30% to 92.983.
The Euro US Dollar (EUR/USD) widely traded pair down 0.10% today. This left the pairing trading around $1.18260.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY rose 0.05% to 106.280 level.
Other commodity related currency lower against U.S dollar, AUD/USD fell 0.10% to 0.72710 and NZD/USD down 0.36% to 0.66940.
EUR/USD Intraday: Bias on the upside
Our pivot point is at 1.18180
Preferable Price Action: Take Long positions above level with targets at 1.18601 & 1.18903 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17780 & 1.17475.
Comment: Pair below its 55MA and RSI near 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 support levels
Our pivot point is at 1.32410
Preferable Price Action: Short positions below pivot with targets at 1.31752 & 1.31454 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.33080 & 1.33403.
Comment: Price below 55MA & 20MA and MACD in negative 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: support at 106.150
Our pivot point is at 106.150
Preferable Price Action: Long position above pivot with the target at 106.400 and 106.550 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.895 and 105.740.
Comment: price above 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 0.72630
Our pivot point is at 0.72630
Preferable Price Action: Long positions above pivot with targets at 0.73002 & 0.73253 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72248 & 0.71987 as targets.
Comment: Pair below its 55MA & 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
CRUDEOIL Intraday: Resistance at 39.85
Our pivot point is at 39.85
Preferable Price Action: Sell crude below pivot with targets at 38.90 and 38.30 in extension.
Alternative Price Action: Above pivots buy Oil with 40.83 & 41.42 as targets..
Comment: Crude below Its 20MA & 55MA and MACD in negative 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: Support at 1925.10
Our pivot point is at 1925.10
Preferable Price Action: Further upside to 1940.14 & 1948.06 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1910.24 and 1902.09.
Comment: MACD in positive territory and price below its 55MA & 20MA.
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 28,220
Our pivot point is at 28220.00
Preferable Price Action: Take sell positions below pivot with targets at 27850.00 & 27670.00 in extension.
Alternative Price Action: Above 28220.00 looks for further upside to 28590.00 & 28770.00.
Comment: Price below its 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