Market Wrap: Stocks, Bonds, Commodities
Wall Street’s slide deepened on Monday as an unprecedented move by the US Federal Reserve to shore up credit across the economy proved insufficient to sooth investors’ fears about the swiftly-spreading coronavirus.
The Dow Jones Industrial Average dropped 3.05% to end at 18,592 points, while the S&P 500 declined 2.93% to 2,237.30. The Nasdaq Composite slumped 0.29% to 6,861.20.
Asian stocks rallied on Tuesday as the U.S. Federal Reserve’s sweeping pledge to spend whatever it took to stabilize the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 3.69% to 519 level, though that followed a plunge of almost 6% on Monday. South Korea and Australia also recouped a little of their recent losses.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index plunged 2.47% to 2,485.55, Germany’s DAX down 2.10% to 8,741.15 and France’s CAC fell 3.32% to 3,914.31 and U.K.’s FTSE 100 slipped 3.79% to 4,993.89.
Benchmark 10-year U.S. Treasury down as fear rose about the crash in the corporate bond market, today rose 6.00% to 0.815.
US crude oil climbed nearly 3% on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilize oil prices.
Brent crude oil advanced 2.5%, to $30.500 a barrel. West Texas Intermediate (WTI) crude rose 5% to $25 a barrel.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.73% to 102.475.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.57% today. This left the pairing trading around $1.07850.
The Japanese yen advanced against the U.S. dollar on Tuesday as the new coronavirus cases spread more in America. Today USD/JPY down 0.66% to 110.450 level.
Other commodity-related currency broadly down against U.S dollar, AUD/USD rose 1.66% to 0.59120 and NZD/USD up 1.16% to 0.57850.
EUR/USD Intraday: Trend may change
Our pivot point is at 1.07200
Preferable Price Action: Take long positions above pivot level with targets at 1.09437 & 1.0113 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.05078 & 1.04392.
Comment: Pairs gives bounce back against U.S. dollar
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 bullish
Our pivot point is at 1.15750
Preferable Price Action: long positions above pivot with targets at 1.17567 & 1.18170 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.13962 and 1.13320.
Comment: The RSI indicator above 50 level mark and pair above 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
JPY/USD Intraday: Resistance at 111.530
Our pivot point is at 110.800
Preferable Price Action: Short position below pivot with the target at 110.065 and 109.657 in extension.
Alternative Price Action: The upside breakout of pivot would call for 111.527 and 111.906.
Comment: Pair below 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
AUD/USD Intraday: At Resistance area
Our pivot point is at 0.58630
Preferable Price Action: Long positions above pivot with targets at 0.60328 & 0.60947 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.56906 & 0.56306 as targets.
Comment: Pair above 55MA and MACD in the positive zone.
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: price show strength upside
Our pivot point is at 23.50
Preferable Price Action: Buy above pivot with targets at 25.46 and 26.40 in extension.
Alternative Price Action: Below pivots sell Oil with 21.49 & 20.54 as targets.
Comment: MACD in the positive zone and pair above 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
XAU/USD Intraday: Trend change to upside
Our pivot point is at 1550.00
Preferable Price Action: Further upside to 1592.47 & 1608.17 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1506.74 and 1489.67.
Comment: MACD in the positive zone and RSI above 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
Dow Jones Intraday: May give temporary bounceback
Our pivot point is at 18930.00
Preferable Price Action: Take Long positions above pivot with targets at 19808.68 & 20198.86 in extension.
Alternative Price Action: Below 18930.00 looks for further downside to 18106.11 & 17746.34.
Comment: Pair is trading 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