Market Wrap: Stocks, Bonds, Commodities
The S&P 500 index future price, a Wall Street benchmark, fell nearly 5% on an early morning as markets resumed and hit their daily down limit.
US major stocks indices tumbled on Friday, as fears of economic impact from the spread of the coronavirus increased, though American major indexes ended well above their session lows.
The Dow Jones 30 declined 255 points (0.98%) to 25,864, the S&P 500 dropped 51.5 points (1.70%) to 2,972, and the Nasdaq Composite fell 163 points (1.9%) to 8,575.
Asian stock indices edged lower on Monday as panicked investors hurray for bonds to hedge the economic effect of the coronavirus, and oil down nearly 30% after Saudi Arabia slashed its official selling rate.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 3.75% to 622.50 level. Australian shares plunged 7.33%, while Japan’s Nikkei stock index slid 5.40%.
European stocks were down on Thursday, with the Stoxx Europe 50 Index declined 3.91% to 3,232, Germany’s DAX dropped 3.37% to 11,540 and France’s CAC fell 4.14% to 5,139 and U.K.’s FTSE 100 down 3.62% to 6,462.55.
Benchmark 10-year U.S. Treasury yields down as demand for a safe asset on Wednesday, today down 36.53% to 0.449.
Crude Oil prices plunged more than 30% on Monday after OPEC not able to reach a deal with its allies Russia on further production cuts, while Saudi Arabia is reportedly set to reduce its prices and increase production.
Brent crude down 27% at $34 per barrel, while US West Texas Intermediate (WTI) crude fell 25% to $30.5 per barrel.
Gold prices jumped to $1,700 per ounce level for the first time in the last eight-year on Monday, as an expanding coronavirus outbreak and a drop in Crude oil push down equities and sent investors for a safe haven.
Market Wrap: Forex
The U.S. dollar index declined on Monday against the euro and yen as a plunge in oil prices combined with coronavirus fears.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 1.05% to 94.000.
The Japanese yen jumped to a more than three-year high against the US dollar, today USD/JPY down 3.00% to 102.300 level.
The Australian dollar last traded 1.35% lower to $0.65520, having recovered from its drop to $0.63100.
EUR/USD Intraday: Upside Trend Continues
Our pivot point is at 1.14030
Preferable Price Action: Take long positions above pivot level with targets at 1.14949 & 1.15446 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.13170 & 1.124660.
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
GBP/USD Intraday: Bias remains Bullish
Our pivot point is at 1.31135
Preferable Price Action: Long positions above pivot with targets at 1.32103 & 1.32603 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.30351 and 1.29759.
Comment: The RSI indicator above 50 level mark and pair above its 20MA & 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
JPY/USD Intraday: Downtrend Continues
Our pivot point is at 102.981
Preferable Price Action: Short position below 102.981 with the target at 104.185 and 104.935 in extension.
Alternative Price Action: The upside breakout of pivot would call for 101.742 and 101.039.
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
AUD/USD Intraday: Bias upside
Our pivot point is at 0.65016
Preferable Price Action: Long positions above pivot with targets at 0.65797 & 0.66127 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64489 & 0.64169 as targets.
Comment: Pair suffer from Large volatility in price.
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: 30% down from the previous session
Our pivot point is at 43.42
Preferable Price Action: Sell below pivot with targets at 29.86 and 28.13 in extension.
Alternative Price Action: Above pivots buy Oil with 36.87 & 38.45 as targets.
Comment: Price war between OPEC and Russia.
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 1660.90
Our pivot point is at 1660.90
Preferable Price Action: Further upside to 1691.86 & 1705.23 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1635.27 and 1619.38
Comment: MACD in Negative territory and pair below its 55MA and 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: Down more than 4% on Thursday.
Our pivot point is at 27,741
Preferable Price Action: Take long positions above pivot with targets at 26,477 & 26,979 in extension.
Alternative Price Action: Below 27,741 looks for further downside to 24,952 & 24,532.
Comment: Pair is trading 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