Market Wrap: Stocks, Bonds, Commodities
American major stock indices closed negative on Monday as traders took some profits after last weeks’ records while they waited for major banks earnings season to begin from today and congress action against trump on capitol riots.
The Dow Jones Industrial Average fell 89.28 points (0.29%) to 31,008.69, the S&P 500 lost 25.07 points (0.66%) to 3,799.61 and the Nasdaq Composite dropped 165.54 points (1.25%) to 13,036.43.
Asian indices were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.28% to 887.70 levels. Australian index fell 0.90% to 6,690.00. Japanese Nikkei closed today.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index down 0.23% to 3,612.25, Germany’s DAX fell 0.10% to 13,924.35 and France’s CAC lost 0.21% to 5,650.45 and U.K.’s FTSE 100 slipped 0.74% to 6,746.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 2.87% to 1.167.
Oil prices slipped on Tuesday as investors remained concerned about climbing coronavirus cases globally, though an anticipated drawdown in crude oil inventory in the United States for a fifth straight week stemmed losses.
Spot Brent crude Oil gained 1.47%% to $56.48 per barrel. US West Texas Intermediate crude rose 1.47% to $53.02 a barrel.
The yellow metal traded 0.45% higher to 1859.70 dollar per ounce.
Market Wrap: Forex
The dollar was up on Tuesday morning in Asia, seeing its fourth consecutive day of gains against major peers as the prospect of large stimulus measures drove U.S. Treasury yields higher.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, slipped 0.05% to 90.400.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.05% today. This left the pairing trading around $1.21560.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY flat to 104.200 level.
Other commodity related currency advance against U.S dollar, AUD/USD higher 0.42% to 0.77280 and NZD/USD rose 0.25% to 0.71780.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.21940
Preferable Price Action: Take Short positions below pivot level with targets at 1.21330 & 1.21080 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.22550 & 1.22800.
Comment: Pair below its 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 upside
Our pivot point is at 1.35320
Preferable Price Action: Buy positions above pivot with targets at 1.35890 & 1.36190 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.34770 & 1.34470.
Comment: Price 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
USD/JPY Intraday: Trend may reverse
Our pivot point is at 104.340
Preferable Price Action: Sell position below with the target at 103.870 and 103.620 in extension.
Alternative Price Action: The upside breakout of pivot would call for 104.810 and 105.060.
Comment: price below its 20MA & 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
AUD/USD Intraday: Break resistance zone
Our pivot point is at 0.77000
Preferable Price Action: Buy Positions above pivot with targets at 0.77500 & 0.77800 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76520 & 0.76220 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: Support at 52.25
Our pivot point is at 52.25
Preferable Price Action: Above pivots buy Oil with 53.40 & 54.00 as targets.
Alternative Price Action: Sell crude below pivot with targets at 51.15 and 50.55 in extension.
Comment: Crude above its 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
XAU/USD Intraday: Break resistance line
Our pivot point is at 1850.60
Preferable Price Action: Further upside to 1871.60 & 1884.00level.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1830.00 and 1817.00.
Comment: MACD in positive territory and price above 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
Dow Jones Intraday: Bias on the upside
Our pivot point is at 30,940.00
Preferable Price Action: Take buy positions above pivot with targets at 31,200.00 & 31,350.00 in extension.
Alternative Price Action: Below 30,940.00 looks for further downside to 30,680.00 & 30,530.00.
Comment: Price below its 20MA & 55MA 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 produced7