Market Wrap: Stocks, Bonds, Commodities
Wall Street ended sharply lower on Thursday, leaving the Nasdaq down nearly 10% from its February record high, after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term U.S. bond yields.
The Dow Jones Industrial Average fell 1.11% to end at 30,924.14 points, while the S&P 500 lost 1.34% to 3,768.47. The Nasdaq Composite dropped 2.11% to 12,723.47.
Asian stocks skidded on Friday as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.
MSCI’s index of Asia-Pacific stocks outside Japan slumped 0.65% to 883.92 levels. Australian index down 0.74% to 6,710.80. Japanese Nikkei traded 0.23% lower to 28,864.32.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index slipped 1.04% to 3,666.95, Germany’s DAX fell 1.00% to 13,920.00 and France’s CAC lower 1.00% to 5,772.90 and U.K.’s FTSE 100 lost 1.01% to 6,581.88.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield rose 0.37% to 1.556.
Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.
Spot Brent crude Oil up 1.41% to $64.74 per barrel. US West Texas Intermediate crude gained 1.62% to $67.81 a barrel.
The yellow metal traded down 0.60% to 1692.20 dollars per ounce.
Market Wrap: Forex
The dollar hit multi-month highs against the euro and the yen on Friday after Federal Reserve Chair Jerome Powell did not express concern about a recent sell-off in bonds while sticking to his stance to keep interest rates low for a long time.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.35% to 91.970.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.36% today. This left the pairing trading around $1.19170.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY advanced 0.44% to 108.410 level.
Other commodity-related currency advance against the U.S dollar, AUD/USD lower 0.60% to 0.76780 and NZD/USD down 0.57% to 0.71460.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.19830
Preferable Price Action: Take Short positions below pivot level with targets at 1.19350 & 1.19050 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.20320 & 1.20620.
Comment: Pair below its 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
GBP/USD Intraday: Resistance at 1.39090
Our pivot point is at 1.39090
Preferable Price Action: Sell positions below pivot with targets at 1.38450 & 1.38150 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39740 & 1.40040.
Comment: Price 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
USD/JPY Intraday: Major trend upside
Our pivot point is at 108.060
Preferable Price Action: Buy position above with the target at 108.560 and 108.860 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.560 and 107.260.
Comment: price above 20MA & 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
AUD/USD Intraday: Resistance at 0.77300
Our pivot point is at 0.77300
Preferable Price Action: Sell Positions below pivot with targets at 0.76600 & 0.76310 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.78000 & 0.78290 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Support at 63.80
Our pivot point is at 63.80
Preferable Price Action: Above pivots buy Oil with 65.00 & 65.70 as targets.
Alternative Price Action: Sell crude below pivot with targets at 62.60 and 61.90 in extension.
Comment: Crude above its 20MA & 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: Resistance at 1701.60
Our pivot point is at 1701.60
Preferable Price Action: Further downside to 1686.50 & 1679.30.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1716.80 and 1723.80.
Comment: MACD in negative territory and price below 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 30,960.00
Our pivot point is 30,960.00
Preferable Price Action: Take sell positions below pivot with targets at 30,560.00 & 30,360.00.
Alternative Price Action: Above 31,350.00 looks for further upside to 31,360.00 & 31,560.00.
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