Market Wrap: Stocks, Bonds, Commodities
Trade was halted on the S&P 500 after it hit downdraft circuit breakers. It fell further when trade resumed, eventually losing 9.5% to close 27% below February’s peak because of coronavirus impact on the world economy and company fundamentals.
The Dow Jones 30 declined 2,352points (9.99%) to 21,200, the S&P 500 dropped 260.75 points (9.51%) to 2,480 and the Nasdaq Composite fell 750 points (9.43%) to 7,201.80.
Asian stock indices crashed on Friday as panic gripping world financial markets deepened, and even haven assets such as gold and bonds were ditched to cover losses in the wipeout.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 2.39% to 571 level. Australian shares surged 4.50%, while Japan’s Nikkei stock index slid 3.18%.
European stocks were down on Thursday, with the Stoxx Europe 50 Index declined 12.35% to 2,546.84, Germany’s DAX dropped 12.24% to 9,160 and France’s CAC fell 12.28% to 4,044 and U.K.’s FTSE 100 down 10.93% to 5,234.
Benchmark 10-year U.S. Treasury yields down as demand for a safe asset grows on Thursday, today down 1.401% to 0.840.
The yellow metal prices see-sawed between gain and losses in early Friday morning after the worst stock market day in the U.S. since 1987. Gold was down 0.21% at $1,588 per ounce.
Crude Oil fell a third consecutive day as price war between oil producer continues on Friday ahead of panic about damage on demand from the coronavirus pandemic, with Brent Oil ready for its biggest weekly loss since 1991 and U.S. crude heading for its worst week since 2008.
Brent crude down 1.64% at $34.80 per barrel, while US West Texas Intermediate (WTI) crude fell 1.35% to $32.40 per barrel.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 96.400.
The Euro US Dollar (EUR/USD) exchange rate gain by 0.20% today. This left the pairing trading around $1.112930.
The Japanese yen dropped against the U.S. dollar on Friday after the Bank of Japan introduced additional stimulus. Today USD/JPY up 0.88% to 105.540.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD advanced 0.88% to 0.62940 and NZD/USD rose 0.90% to 0.61300.
EUR/USD Intraday: Bias Remain bearish
Our pivot point is at 1.12418
Preferable Price Action: Take short positions below pivot level with targets at 1.11531 & 1.11021 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13138 & 1.13615.
Comment: MACD is 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
GBP/USD Intraday: Trend continuously down
Our pivot point is at 1.26520
Preferable Price Action: Short positions below pivot with targets at 1.25214 & 1.24445 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.27801 and 1.28762.
Comment: The RSI indicator below 50 level mark and pair below 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
JPY/USD Intraday: Break previous resistance level
Our pivot point is at 104.555
Preferable Price Action: Long position above pivot with the target at 106.472 and 107.544 in extension.
Alternative Price Action: The downside breakout of pivot would call for 102.754 and 101.818
Comment: Pair bounce back from the previous support level. 
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: Trend down
Our pivot point is at 0.63688
Preferable Price Action: Short positions below pivot with targets at 0.62576 & 0.62019 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.64720 & 0.65225 as targets.
Comment: Pair below 20MA and 55MA and RSI below 50 level mark.
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: In a consolidation zone
Our pivot point is at 30.50
Preferable Price Action: Sell below pivot with targets at 27.60 and 25.98 in extension.
Alternative Price Action: Above pivots buy Oil with 33.87 & 35.75 as targets.
Comment: MACD in the positive zone and RSI above 50 marks.
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: May price reverse from onward
Our pivot point is at 1565.73
Preferable Price Action: Further upside to 1604.75 & 1625.13 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1535.45 and 1517.10.
Comment: RSI above 50 level and price above 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: Future rose 5%
Our pivot point is at 21,458
Preferable Price Action: Take long positions above pivot with targets at 22,757 & 23,506 in extension.
Alternative Price Action: Below 21,458 looks for further downside to 20,451 & 19,935.
Comment: Pair is trading above its 20MA & 55MA and RSI above 50 level.
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