Market Wrap: Stocks, Bonds, Commodities
US stocks rocketed higher on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, the country’s biggest coronavirus hot spot, fueled optimism a levelling off of the pandemic was on the horizon.
The Dow Jones Industrial Average rose 1,627.46 points (7.73%) to 22,679.99, the S&P 500 gained 175.03 points (7.03%) to 2,663.68 and the Nasdaq Composite added 540.16 points to 7,913.24.
Asian markets looked poised on Tuesday to attempt another day of gains after stocks rallied on signs of a slowdown in coronavirus-related deaths, as oil prices resumed their decline on doubts about a potential Saudi-Russian pact to cut output.
MSCI’s index of Asia-Pacific stocks outside Japan advanced 1.77% to 572.60 levels. Australian index was down 0.60%. Japan’s Nikkei up 2% to 18,950.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index rose 4.99% to 2795.56, Germany’s DAX advances 5.74% to 10,072.50 and France’s CAC up 4.61% to 4,346.14 and U.K.’s FTSE 100 soared 2.34% to 5,542.10.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield up 6.21% to 0.720.
Oil rose on Tuesday amid hopes that the world’s biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy, even as analysts cautioned the cuts may do little to boost demand.
Brent crude Oil advanced 3.20% to $34.70 per barrel. while US West Texas Intermediate (WTI) crude rose 3.50% to $29.82 per barrel.
Today, Yellow metal was up 1.40% to $1661 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 0.30% to 100.465.
The Euro US Dollar (EUR/USD) widely traded pair rose by 0.32% today. This left the pairing trading around $1.08250.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY down 0.35% to 108.820 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD up 1.00% to 0.61470 and NZD/USD rose 0.90% to 0.59830.
EUR/USD Intraday: Trend may change
Our pivot point is at 1.08300
Preferable Price Action: Take Long positions above pivot level with targets at 1.09177 & 1.09623 in extension.
Alternative Price Action: below pivot looks for further downside at 1.07828 & 1.07398.
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 1.23100
Our pivot point is at 1.23100
Preferable Price Action: Long positions above pivot with targets at 1.23764 & 1.24238 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22615 & 1.22217.
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 108.650
Preferable Price Action: Long position above pivot with the target at 109.581 and 110.291 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.842 and 107.142.
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: Break Resistance area
Our pivot point is at 0.61230
Preferable Price Action: Long positions above pivot with targets at 0.62335 & 0.62777 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.60730 & 0.60252 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: In consolidation zone
Our pivot point is at 26.20
Preferable Price Action: Buy above pivot with targets at 28.25 and 29.65 in extension.
Alternative Price Action: Below pivots sell Oil with 24.44 & 23.14 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 $1650
Our pivot point is at 1650.00
Preferable Price Action: Further upside to 1679.26 & 1698.93 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1625.29 and 1608.24.
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: Uptrend resume
Our pivot point is at 22680.00
Preferable Price Action: Take Long positions above pivot with targets at 23496.10 & 23992.37 in extension.
Alternative Price Action: Below 21550.00 looks for further downside to 22115.27 & 21632.70.
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