Market Wrap: Stocks, Bonds, Commodities
Wall Street plummeted on Thursday as investors reacted to renewed fears of a pandemic resurgence and digested dour economic forecasts from the U.S. Federal Reserve.
The Dow Jones Industrial Average fell 1,861.82 points (6.9%) to 25,128.17, the S&P 500 lost 188.04 points (5.89%) to 3,002.1 and the Nasdaq Composite dropped 527.62 points (5.27%) to 9,492.73.
Asian equities are set to fall sharply on Friday after Wall Street stocks and oil tumbled over growing concerns that a resurgence of coronavirus infections could stunt the pace of reopening economies.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 0.95% to 3,174, Germany’s DAX gained 0.77% to 12,060.80 and France’s CAC climbed 1.22% to 4,874.03 and U.K.’s FTSE 100 advanced 0.63% to 6,115.00.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 7.21% to 0.700.
Oil prices slid early on Friday, extending heavy overnight losses on a surge in US coronavirus cases this week that has raised the prospect of a second wave of the outbreak slamming demand in the world’s biggest consumer of crude and fuel.
West Texas Intermediate was down 4% at $35.02 a barrel. Brent crude was down 3% at $37.40 a barrel, having dropped nearly 8% the previous session.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.20% to 96.550.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.31% today. This left the pairing trading around $1.13320. The pound traded 0.20% higher to 1.26280.
The Japanese yen rose against the U.S. dollar on Thursday as demand for safe currency rose. Today US/JPY lost 0.3% to 106.600.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.61% to 0.68950 and NZD/USD advance 0.61% to 0.64700.
EUR/USD Intraday: Resistance at 1.13330
Our pivot point is at 1.13330
Preferable Price Action: Take Short positions below pivot level with targets at 1.12857 & 1.12606 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.13813 & 1.14046.
Comment: Very strong resistance at 1.13330 level.
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: Resistance at 1.26380
Our pivot point is at 1.26380
Preferable Price Action: Short positions below pivot with targets at 1.25605 & 1.25309 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.27115 & 1.27395.
Comment: Price below 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 produced
USD/JPY Intraday: Temporary pullback
Our pivot point is at 106.800
Preferable Price Action: Long position above pivot with the target at 107.406 and 107.675 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.233 and 106.963.
Comment: Pair above 20MA 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 produced
AUD/USD Intraday: Bias on the downside
Our pivot point is at 0.69000
Preferable Price Action: Short positions below pivot with targets at 0.68351 & 0.68037 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.69673 & 0.69975 as targets.
Comment: MACD in the negative zone and RSI at oversold 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: In consolidation zone
Our pivot point is at 36.30
Preferable Price Action: Sell crude below pivot with targets at 34.90 and 34.20 in extension.
Alternative Price Action: Above pivots buy Oil with 37.74 & 38.39 as targets.
Comment: Bias on the upside for crude as trend 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
XAU/USD Intraday: Trend on upside
Our pivot point is at 1724.00
Preferable Price Action: Further upside to 1735.00 & 1740.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1712.93 and 1707.40.
Comment: RSI above 50 level mark 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
Dow Jones Intraday: Trend change to downside
Our pivot point is at 25750.00
Preferable Price Action: Take sell positions below pivot with targets at 25172.79 & 24906.41 in extension.
Alternative Price Action: Above 25750.00 looks for further upside to 26295.01 & 26567.44.
Comment: Price below 20MA and 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 produced7