Market Wrap: Stocks, Bonds, Commodities
The Dow soared on Tuesday to its biggest one-day percentage gain since 1933, after US lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism following the biggest selloff since the financial crisis.
The Dow Jones Industrial Average jumped 11.40% to end at 20,705 points, while the S&P 500 rallied 9.41% to 2,447.45. The Nasdaq Composite soared 8.15% to 7,418.01.
Asian shares extended their rally on Wednesday in the wake of Wall Street’s big gains as US Congress appeared closer to passing a $2 trillion stimulus package to curb the coronavirus pandemic’s economic toll.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 3.40% to 545 levels while Australian index advanced 5.5% and South Korean shares gaining 4%. Japan’s Nikkei index rose 8.20%.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index surged 9.98% to 2733, Germany’s DAX rose 11.49% to 9,745.25 and France’s CAC advanced 8.39% to 4,242 and U.K.’s FTSE 100 jumped 9.35% to 5,460.75.
Benchmark 10-year U.S. Treasury down as fear rose about the crash in the corporate bond market, today rose 1.53% to 0.831.
Oil prices extended gains for the third session on Wednesday, rising alongside broader financial markets on hopes Washington will soon approve a massive aid package to stem the economic impact of the coronavirus pandemic.
US crude touched a high of $25.10 a barrel early in the session and was at $24.61 a barrel, up 60 cents, or 2.5%. Brent crude was trading up 1.8% to $27.64 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 0.65% to 101.585.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.26% today. This left the pairing trading around $1.08120.
The Japanese yen advanced against the U.S. dollar on Wednesday America allow 2 Trillion stimulus packages. Today USD/JPY flat to 111.270 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD rose 1.24% to 0.60300 and NZD/USD up 1.35% to 0.57740.
EUR/USD Intraday: support at 1.07500
Our pivot point is at 1.07600
Preferable Price Action: Take long positions above pivot level with targets at 1.08500 & 1.08953 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.06688 & 1.06258.
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 remains bullish
Our pivot point is at 1.17550
Preferable Price Action: long positions above pivot with targets at 1.18860 & 1.19321 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.16211 and 1.15728.
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 111.700
Our pivot point is at 111.700
Preferable Price Action: Short position below pivot with the target at 110.796 and 110.284 in extension.
Alternative Price Action: The upside breakout of pivot would call for 112.614 and 113.129.
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: break resistance level
Our pivot point is at 0.59740
Preferable Price Action: Long positions above pivot with targets at 0.60869 & 0.61366 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.58532 & 0.58027 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 23.80
Preferable Price Action: Buy above pivot with targets at 25.57 and 26.50 in extension.
Alternative Price Action: Below pivots sell Oil with 22.04 & 21.11 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 the upside
Our pivot point is at 1583.00
Preferable Price Action: Further upside to 1634.00 & 1660.96 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1527.96 and 1501.12.
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: Temporary trend change
Our pivot point is at 20400.00
Preferable Price Action: Take Long positions above pivot with targets at 21704.35 & 22112.77 in extension.
Alternative Price Action: Below 18930.00 looks for further downside to 19039.25 & 1774.
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