Market Wrap: Stocks, Bonds, Commodities
American major stock indices down on Tuesday as traders took profits following a warning from the top US infectious disease expert that moves to reopen the USA economy could expand to novel coronavirus outbreaks and set back economic recovery.
Dow Jones Industrial Average plunged 1.76% to end at 23,803.60 points, while the S&P 500 decline 1.90%, to 2,875.55. The Nasdaq Composite slipped 1.88%, to 9,021.40.
Asian major indices were set to pull back on Wednesday as heightened concerns about coronavirus infections and the timing for a vaccine outweighed the lift from rebounding oil prices.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.50% to 604.50 levels. Australian index rose 0.35% to 5,421.90 and Japanese market down 0.49% to 20,267.05.
European stocks were mixed on Tuesday, with the Stoxx Europe 50 Index flat to 2,884.75, Germany’s DAX declined 0.10% to 10,819.50 and France’s CAC down 0.40% to 4,472.50 and U.K.’s FTSE 100 advanced 0.93% to 5,994.77.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield plunged 3.14% to 0.670.
Oil prices slipped on Wednesday after rose in US crude inventories and worried mount about a possible second wave of the coronavirus pandemic in countries easing lockdowns.
Brent crude oil down 1.30% to $30.080 per barrel. while US West Texas Intermediate (WTI) crude slipped 1.10% to $26.10 per barrel.
Today, gold prices up 0.10% to $1703.75 per ounce.
Market Wrap: Forex
The dollar index was rose on Wednesday morning in Asia, with investors anticipating a speech by U.S. Federal Reserve Chair Jerome Powell later in the day.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.05% to 99.990.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.10% today. This left the pairing trading around $1.08500. The pound traded 0.35% rose to 1.22970.
The Japanese yen rose against the U.S. dollar on Wednesday as demand for safe currency rose. Today US/JPY flat to 107.170.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD climbed 0.15% to 0.64750 and NZD/USD lost 0.95% to 0.60180.
EUR/USD Intraday: Bias on the upside
Our pivot point is at 1.08350
Preferable Price Action: Take Long positions above pivot level with targets at 1.08744 & 1.08984 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07976 & 1.07753.
Comment: pair above 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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.22500
Preferable Price Action: Long positions above pivot with targets at 1.23099 & 1.23405 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21924 & 1.21625.
Comment: MACD in the negative zone and pair below 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
JPY/USD Intraday: Trend change to the downside
Our pivot point is at 107.300
Preferable Price Action: Short position below pivot with the target at 106.758 and 106.471 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.799 and 108.083.
Comment: Pair below 20MA and RSI at oversold 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
AUD/USD Intraday: Support at 0.64500
Our pivot point is at 0.64500
Preferable Price Action: Long positions above pivot with targets at 0.65004 & 0.65256 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64023 & 0.63759 as targets.
Comment: MACD in the negative zone 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
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 25.35
Preferable Price Action: Buy crude above pivot with targets at 26.20 and 26.70 in extension.
Alternative Price Action: Below pivots sell Oil with 24.43 & 23.92 as targets.
Comment: RSI below 50 level and price below 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: Bias on side upside
Our pivot point is at 1699.00
Preferable Price Action: Further upside to 1707.30 & 1713.01 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1690.90 and 1685.28.
Comment: RSI at 50 level mark and price 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
Dow Jones Intraday: Resistance at 23,850
Our pivot point is at 23850.00
Preferable Price Action: Take sell positions below pivot with targets at 23402.99 & 23150.65 in extension.
Alternative Price Action: Above 23850.00 looks for further upside to 24277.98 & 24523.77.
Comment: Inde below 20MA and also 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