Market Wrap: Stocks, Bonds, Commodities
US major stock indices ended higher on Monday as increases stock price in large tech and internet companies and oil price gains outweighed concerns about the latest US-China tensions.
The Dow Jones Industrial Average higher 0.11%, to 23,750.20, the S&P 500 advanced 0.42%, to 2,842.55 and the Nasdaq Composite rose 105.77 points (1.23%) to 8,711.20.
A late-session S&P 500 rally is expected to lead Asian indices higher on Tuesday after oil rose on easing coronavirus restrictions and prospects of an economic recovery, overcoming concerns about the start of U.S.- China trade tensions.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.64% to 590.00 levels. Australian index rose 1.48% to 5,398.40. Japanese and Chinese market closed for public holidays.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 3.81% to 2,816.10, Germany’s DAX down 3.64% to 10,466.80 and France’s CAC slipped 0.16% to 4,378.23 and U.K.’s FTSE 100 lower 0.16% to 5,753.78.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lower 1.10% to 0.631.
Crude Oil prices soared on Tuesday, on expectations that fuel demand will pick up as some American states and nations in Europe and Asia start to ease coronavirus lockdown.
Brent crude oil rose 3.93% to $28.600 per barrel. while US West Texas Intermediate (WTI) crude soared 6.03% to $23.12 per barrel.
The yellow metal traded downside on Tuesday as some countries easing lockdown measures and restarting their economies. Today, gold prices lower 0.45% to $1701 per ounce.
Market Wrap: Forex
The U.S. dollar index traded lower on Tuesday morning, with stocks up as some countries restart their economies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 99.500.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.10% today. This left the pairing trading around $1.09070.
The Japanese yen rose against the U.S. dollar on Tuesday as demand for safe currency rose. Today US/JPY lower 0.15% to 106.620 level.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD gained 0.38% to 0.64500 and NZD/USD added 0.30% to 0.60630.
EUR/USD Intraday: Trend may reverse
Our pivot point is at 1.09250
Preferable Price Action: Take short positions below pivot level with targets at 1.08813 & 1.08478 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.09677 & 1.09988.
Comment: pair below 20MA 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
GBP/USD Intraday: Support at 1.24200
Our pivot point is at 1.24200
Preferable Price Action: Long positions above pivot with targets at 1.24970 & 1.25305 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23539 & 1.23218.
Comment: The RSI indicator above 50 and pair above 50MA & 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 a consolidation zone
Our pivot point is at 106.480
Preferable Price Action: Long position above pivot with the target at 106.960 and 107.281 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.023 and 105.727.
Comment: Pair above 20MA and RSI at 50 levels 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
AUD/USD Intraday: Bias on the upside
Our pivot point is at 0.64300
Preferable Price Action: Long positions above pivot with targets at 0.64821 & 0.65153 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63755 & 0.63434 as targets.
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
CRUDEOIL Intraday: Trend Upside
Our pivot point is at 22.50
Preferable Price Action: Buy crude above pivot with targets at 24.51 and 25.52 in extension.
Alternative Price Action: Below pivots sell Oil with 20.57 & 19.47 as targets.
Comment: RSI at overbought and price 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
XAU/USD Intraday: Support at 1695
Our pivot point is at 1695.00
Preferable Price Action: Further upside to 1708.33 & 1714.81 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1681.90 and 1675.47.
Comment: RSI above 50 level mark and price 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
Dow Jones Intraday: Trend may change to the upside
Our pivot point is at 23750.00
Preferable Price Action: Take buy positions above pivot with targets at 24150.98 & 24450.20 in extension.
Alternative Price Action: Below 23750.00 looks for further downside to 23376.38 & 23065.05.
Comment: Index above 55MA & 20MA and also MACD in positive side.
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