Market Wrap: Stocks, Bonds, Commodities
The S&P 500 and Nasdaq closed modestly higher on Friday in choppy trading, with investors keeping a close eye on negotiations on a U.S. stimulus package that would ease the economic shock caused by the coronavirus pandemic.
The Dow Jones Industrial Average closed 28.09 points lower (0.10%) to 28,335.57, the S&P 500 gained 11.9 points (0.34%) to 3,465.39 and the Nasdaq Composite added 42.28 points (0.37) to 11,548.28.
Global shares got off to a cautious start on Monday as surging coronavirus cases in Europe and the United States threaten the economic outlook, even as growth in China provides some support to Asia.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index fell 0.29% to 3,171.41, Germany’s DAX down 0.12% to 12,543.06 and France’s CAC lost 0.05% to 4,851.38 and U.K.’s FTSE 100 gained 0.16% to 5,785.65.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 3.96% to 0.808.
Oil prices fell on Monday, extending last week’s losses, as a jump in COVID-19 infections in the United States and Europe raised alarms over crude demand, while the prospect of increased supply also hurt sentiment.
Spot Brent crude Oil fell 2.80% to $40.89 per barrel. US West Texas Intermediate crude lost 2.83% to $40.88 a barrel.
The yellow metal traded 0.27% lower to 1898.70 dollar per ounce.
Market Wrap: Forex
The dollar found support on Monday, as surging coronavirus cases in Europe and the United States and a lack of progress toward a U.S. stimulus package put traders in a cautious mood, although hopes for a Brexit trade deal held sterling steady.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.22% to 92.963.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.21% today. This left the pairing trading around $1.18340.
The Japanese rose down against the U.S. dollar on Monday as stock pushes lower. Today US/JPY advance 0.21% to 104.910 level.
Other commodity related currency lower against U.S dollar, AUD/USD slipped 0.41% to 0.71060 and NZD/USD fell 0.05% to 0.66750.
EUR/USD Intraday: Support at 1.18170
Our pivot point is at 1.18170
Preferable Price Action: Take Long positions above level with targets at 1.18560 & 1.18760 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17790 & 1.17590.
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
GBP/USD Intraday: Trend on downside
Our pivot point is at 1.30530
Preferable Price Action: Short positions below pivot with targets at 1.29950 & 1.29650 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.31100 & 1.31400.
Comment: Price below 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
USD/JPY Intraday: Trend on the upside
Our pivot point is at 104.770
Preferable Price Action: Long position above pivot with the target at 105.080 and 105.250 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.470 and 104.300.
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
AUD/USD Intraday: Resistance at 0.71350
Our pivot point is at 0.71350
Preferable Price Action: Short positions below pivot with targets at 0.70900 & 0.70700 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.71790 & 0.71990 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: Trend on downside
Our pivot point is at 39.55
Preferable Price Action: Sell crude below pivot with targets at 38.50 and 38.00 in extension.
Alternative Price Action: Above pivots buy Oil with 40.60 & 41.10 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Resistance at 1904.00
Our pivot point is at 1904.60
Preferable Price Action: Further downside to 1892.00 & 1886.00 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1917.20 and 1923.50.
Comment: MACD in negative territory and price above its 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: Trend downside
Our pivot point is at 28,180.00
Preferable Price Action: Take sell positions below pivot with targets at 27,900.00 & 27,750.00 in extension.
Alternative Price Action: Above 28,180.00 looks for further upside to 28,460.00 & 28,610.00.
Comment: Price below its 55MA & 20MA 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 produced7