Market Wrap: Stocks, Bonds, Commodities
Wall Street ended sharply lower on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.
The Dow Jones Industrial Average fell 1.08% to end at 29,080.17 points, while the S&P 500 lost 1.00% to 3,537.01. The Nasdaq Composite dropped 0.65% to 11,709.59.
Major Asian stock index were poised to pull back after markets in the United States and Europe sold off on concerns over rising coronavirus infections.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.50% to 781.50 levels. Australian index down 0.20% to 6,405.20. Japanese market down 0.53% to 25,385.87.
European stocks were lower on Friday, with the Stoxx Europe 50 Index fell 0.05% to 3,426.39, Germany’s DAX down 0.20% to 13,025.30 and France’s CAC gained 0.05% to 5,364.70 and U.K.’s FTSE 100 slipped 0.65% to 6,297.50.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.32% to 0.883.
Oil prices fell in early trade on Friday as a spike in the number of COVID-19 infections raised fears for the global economy and near-term fuel demand, but remained on track for a second straight weekly gain amid hopes for a vaccine.
Spot Brent crude Oil slipped1.10 % to $43.05 per barrel. US West Texas Intermediate crude down 1.34% to $40.56 a barrel.
The yellow metal traded 0.20% higher to 1878.30 dollar per ounce.
Market Wrap: Forex
The dollar headed for its best week against the yen since March on Friday, as COVID-19 vaccine news lured investors out of the Japanese safe haven, though riskier currencies have made little headway as the pandemic worsens in Europe and the United States.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.06% to 92.905.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.10% today. This left the pairing trading around $1.1812.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes lower. Today US/JPY down 0.05% to 105.100 level.
Other commodity related currency mixed against U.S dollar, AUD/USD gained 0.10% to 0.72380 and NZD/USD slipped 0.20% to 0.68250.
EUR/USD Intraday: Support at 1.18000
Our pivot point is at 1.18000
Preferable Price Action: Take Long positions above pivot level with targets at 1.18330 & 1.18530 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17670 & 1.17470.
Comment: Pair above its 55MA & 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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.31360
Preferable Price Action: Long positions above pivot with targets at 1.31810 & 1.32110 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.30920 & 1.30630.
Comment: Price above 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: Support at 104.910
Our pivot point is at 104.910
Preferable Price Action: Long position above pivot with the target at 105.300 and 105.550 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.520 and 104.270.
Comment: price above its 55MA & 20MA 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
AUD/USD Intraday: Break support levels
Our pivot point is at 0.72540
Preferable Price Action: Short positions below pivot with targets at 0.72210 & 0.72000 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72860 & 0.73060 as targets.
Comment: Pair below its 55MA & 20MA 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
CRUDEOIL Intraday: Trend downside
Our pivot point is at 41.10
Preferable Price Action: Sell crude below pivot with targets at 40.45 and 40.00 in extension.
Alternative Price Action: Above pivots buy Oil with 41.75 & 42.20 as targets.
Comment: Crude below 55MA & 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
XAU/USD Intraday: Support at 1875.40
Our pivot point is at 1875.40
Preferable Price Action: Further upside to 1884.30 & 1890.20 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1866.60 and 1860.75.
Comment: MACD in positive territory and price above its 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: Bias on the upside
Our pivot point is at 29,040.00
Preferable Price Action: Take buy positions above pivot with targets at 29,370.00 & 29,560.00 in extension.
Alternative Price Action: Below 29,040.00 looks for further downside to 28,710.00 & 28,520.00.
Comment: Price above its 55MA & 20MA 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