Market Wrap: Stocks, Bonds, Commodities
US stock markets jumped on Wednesday on hopeful signs about the coronavirus outbreak in the United States was close to a peak, with health insurers getting an additional lift from Bernie Sanders’ decision to suspend his presidential campaign.
The Dow Jones Industrial Average soared 779.52 points (3.44%) to 23,434, the S&P 500 advanced 3.39% to 2,750.02 and the Nasdaq Composite rose 2.58% to 8,091.
Asian shares were poised to track Wall Street’s gains on Thursday on hopes the coronavirus pandemic is nearing a peak and that governments would roll out more stimulus measures.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.77% to 577 levels. Australian index was advanced 2.66%. Japan Nikkei flat to 19,274.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index fell 0.22% to 2851.27, Germany’s DAX down 0.23% to 10,332 and France’s CAC flat to 4,442.75 and U.K.’s FTSE 100 lost 1.44% to 5,622.13.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield down 2.57% to 0.744.
Crude futures rose on Thursday on expectations the world’s largest oil producers would agree to cut production at a meeting later in the day as the industry grapples with the coronavirus-driven collapse in global oil demand.
Brent crude oil advanced 1.67% to $34.350 per barrel. while US West Texas Intermediate (WTI) crude rose 3.51% to $29.74 per barrel.
Gold prices were little changed after early trading in New York on Wednesday, as both risk and haven assets settled into quieter trading patterns amid hopes that the U.S. economy will soon put the worst of COVID-19 behind it.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.10% to 100.265.
The Euro US Dollar (EUR/USD) widely traded pair almost flat today. This left the pairing trading around $1.08520.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY flat to 108.920 level.
Commodity currencies drew support on Thursday from hopeful signs the coronavirus pandemic may be peaking and that major oil producers may agree to cut output to stem a plunge in oil prices. Today AUD/USD traded around 0.62010.
EUR/USD Intraday: Trend may change
Our pivot point is at 1.08850
Preferable Price Action: Take Short positions below pivot level with targets at 1.08185 & 1.07815 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.09261 & 1.09619.
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: Bias remain bullish
Our pivot point is at 1.23400
Preferable Price Action: Long positions above pivot with targets at 1.24231 & 1.24659 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22902 & 1.22463.
Comment: The RSI indicator above 50 levels and pair 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
JPY/USD Intraday: In consolidation zone
Our pivot point is at 108.600
Preferable Price Action: Long position above pivot with the target at 109.351 and 109.697 in extension.
Alternative Price Action: The downside breakout of pivot would call for 108.208 and 107.887.
Comment: Pair below 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: Uptrend continues
Our pivot point is at 0.61830
Preferable Price Action: Long positions above pivot with targets at 0.62793 & 0.63268 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.61337 & 0.60914 as targets.
Comment: RSI above 50 level and pair continues 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
CRUDEOIL Intraday: Break Resistance
Our pivot point is at 29.35
Preferable Price Action: Buy above pivot with targets at 31.34 and 32.32 in extension.
Alternative Price Action: Below pivots sell Oil with 28.37 & 27.50 as targets.
Comment: MACD in the positive zone and RSI above 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
XAU/USD Intraday: Uptrend Continues
Our pivot point is at 1641.00
Preferable Price Action: Further upside to 1672.19& 1687.11 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1625.21 and 1611.49.
Comment: demand for safe heaven rise as uncertainity extend.
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: Trend may change
Our pivot point is at 23700.00
Preferable Price Action: Take Short positions below pivot with targets at 23118.32 & 22639.44 in extension.
Alternative Price Action: Above 23700.00 looks for further upside to 24082.92 & 24454.24.
Comment: May price reverse from here
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