Market Wrap: Stocks, Bonds, Commodities
US stocks closed lower after a choppy trading session on Thursday as heavyweight tech-related stocks resumed their decline following a sharp rebound the previous session, while elevated jobless claims reminded investors of a difficult recovery ahead.
The Dow Jones Industrial Average fell 405.89 points (1.45%) to 27,534.58, the S&P 500 lost 59.77 points (1.76%) to 3,339.19 and the Nasdaq Composite dropped 221.97 points (1.99%) to 10,919.59.
Asian markets fell on Friday in response to declines in technology stocks that began last week and growing concerns about another round of negotiations on the UK’s departure from the European Union.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.60% to 714.50 levels. Australian index slipped 0.83% to 5,859.40. Japanese Nikkei gained 0.74% to 23,406.49.
European stocks were lower on Friday, with the Stoxx Europe 50 Index down 0.40% to 3,299.38, Germany’s DAX lost 0.43% to 13,149.40 and France’s CAC fell 0.30% to 5,008.67 and U.K.’s FTSE 100 up 0.18% to 6,014.63.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.51% to 0.681.
Oil prices fell for a second day on Friday, pressured by a surprise rise in U.S. stockpiles as the coronavirus pandemic continues to erode demand for fuels.
Spot Brent crude oil fell 0.05% to $40.05 per barrel. US West Texas Intermediate crude rose 0.20% to $37.37 a barrel.
The yellow metal traded 0.55% lower to 1945.20 dollars per ounce.
Market Wrap: Forex
The dollar found support on Wednesday as a stock market slide spooked investors into selling riskier currencies, while worries about Brexit pushed the pound down to a new six-week low.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.12% to 93.220.
The Euro US Dollar (EUR/USD) widely traded pair advance 0.36% today. This left the pairing trading around $1.18550.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY rose 0.10% to 106.220 level.
Other commodity-related currency higher against U.S dollar, AUD/USD gained 0.50% to 0.72930 and NZD/USD up 0.44% to 0.66790.
EUR/USD Intraday: Support at 1.18260
Our pivot point is at 1.18260
Preferable Price Action: Take Long positions above level with targets at 1.18601 & 1.18852 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17909 & 1.17639.
Comment: Pair above its 20MA & 55MA 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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.28640
Preferable Price Action: Short positions below pivot with targets at 1.28002 & 1.27705 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.29272 & 1.29588.
Comment: Price below 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
USD/JPY Intraday: In consolidation zone
Our pivot point is at 106.070
Preferable Price Action: Long position above pivot with the target at 106.358 and 106.563 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.770 and 105.571.
Comment: price below 55MA and RSI near 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
AUD/USD Intraday: Support at 0.72550
Our pivot point is at 0.72550
Preferable Price Action: Long positions above pivot with targets at 0.73074 & 0.73340 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.72022 & .71747 as targets.
Comment: Pair above its 55MA & 20MA 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: Bias on the downside
Our pivot point is at 37.75
Preferable Price Action: Sell crude below pivot with targets at 37.00 and 36.50 in extension.
Alternative Price Action: Above pivots buy Oil with 38.50 & 39.00 as targets..
Comment: Crude below Its 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
XAU/USD Intraday: Support at 1937.90
Our pivot point is at 1937.90
Preferable Price Action: Further upside to 1948.02 & 1955.26 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1927.29 and 1919.47.
Comment: MACD in negative territory and price above its 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
Dow Jones Intraday: Break support level
Our pivot point is at 27810.00
Preferable Price Action: Take sell positions below pivot with targets at 27530.00 & 27330.00 in extension.
Alternative Price Action: Above 27810.00 looks for further upside to 28090.00 & 28290.00.
Comment: Price below its 55MA and RSI at 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 produced7