Market Wrap: Stocks, Bonds, Commodities
There are signs coronavirus deaths might be slowing, though world leaders are warning of more dire times ahead. The world’s largest oil producers are racing to come to an agreement to stem the plunge in prices.
The Dow Jones Industrial Average down 1.69% to 21,052.53, the S&P 500 fell 1.51% to 2,488.65 and the Nasdaq Composite lost 1.52%, to 7,373.08.
Asian markets advanced on Monday Wall Street’s future gain more than 4% in early morning in Asian session.
Japan’s Nikkei 225 gained 2.45%. Prime Minister Shinzo Abe is expected to declare a state of emergency by Tuesday to curb the spiking numbers of COVID-19 cases in the country.
MSCI’s index of Asia-Pacific stocks outside Japan advanced 1.67% to 558.73 levels. Australian index was soared 4.33%. China’s markets are closed today for a holiday.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index fell 0.95% to 2662.99, Germany’s DAX down 0.47% to 9,525.77 and France’s CAC slipped 1.57% to 4,154.58 and U.K.’s FTSE 100 lost 1.18% to 5,415.15.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield up 6.77% to 0.629.
Gold prices were little changed on Monday morning as traders remained cautious amid the continuous economic turmoil. Gold continues to be in wait-and-see mode on how bad the global economy will get and how long will the depression-like conditions last.
Oil prices skidded on Monday after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive, while stocks jumped as investors were encouraged by a slowdown in coronavirus-related deaths and new cases.
Brent crude Oil fell 0.90% to $34.250 per barrel. while US West Texas Intermediate (WTI) crude down 1.30% to $29.94 per barrel.
Market Wrap: Forex
The U.S. dollar inched up in Asia on Monday as cities hard hit by the COVID-19 virus reported a decline in fatalities over the weekend.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 100.700.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.10% today. This left the pairing trading around $1.08170.
The GBP/USD pair gained 0.10% to 1.22650 as Prime Minister Boris Johnson was hospitalized for tests on Sunday.
The Japanese yen down against the U.S. dollar on Monday as stock pushes higher. Today US/JPY up 0.60% to 109.000 level.
EUR/USD Intraday: Resistance at 1.08470
Our pivot point is at 1.08470
Preferable Price Action: Take Short positions below pivot level with targets at 1.07770 & 1.07329 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08924 & 1.09360.
Comment: pair below 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
GBP/USD Intraday: Support at 1.22150
Our pivot point is at 1.22150
Preferable Price Action: Long positions above pivot with targets at 1.23295 & 1.23797 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21625 & 1.21137.
Comment: The RSI indicator above 50 levels and pair above 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: Uptrend continues
Our pivot point is at 108.700
Preferable Price Action: Long position above pivot with the target at 110.122 and 111.077 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.673 and 106.783.
Comment: Pair 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: Bias remains bearish
Our pivot point is at 0.60830
Preferable Price Action: Short positions below pivot with targets at 0.59816 & 0.59375 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.61319 & 0.61781 as targets.
Comment: Resistance at 0.60830
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 soared 35%
Our pivot point is at 25.40
Preferable Price Action: Buy above pivot with targets at 28.98 and 30.32 in extension.
Alternative Price Action: Below pivots sell Oil with 23.46 & 22.03 as targets.
Comment: MACD in the positive zone 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
XAU/USD Intraday: Support at $1605
Our pivot point is at 1605.00
Preferable Price Action: Further upside to 1638.09 & 1650.25 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1590.07 and 1579.20.
Comment: demand for safe heaven rise
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: Support at 21,550
Our pivot point is at 21550.00
Preferable Price Action: Take Long positions above pivot with targets at 22404.92 & 22862.93 in extension.
Alternative Price Action: Below 21550.00 looks for further downside to 21045.50 & 20605.51.
Comment: traders bias may change to upside.
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