Market Wrap: Stocks, Bonds, Commodities
American major stock indices surged on Monday, fueled by expectations of a coronavirus relief package and by a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season.
The Dow Jones Industrial Average was up 1.13% at 28,910.08 points, while the S&P 500 gained 2.01% to 3,546.95. The Nasdaq Composite surged 3.16% at 11,945.77.
Asian stocks were set to rise on Tuesday, as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.05% to 751.50 levels. Australian index rose 1.04% to 6,195.70. Japanese Nikkei gained 0.18% to 23,601.78.
European stocks were lower on Friday, with the Stoxx Europe 50 Index lost 0.44% to 3,283.70, Germany’s DAX down 0.42% to 13,080.60 and France’s CAC slipped 0.53% to 4,952.20 and U.K.’s FTSE 100 fell 0.43% to 5,975.95.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield plunged 2.74% to 0.754.
Oil prices were steady in early trade on Tuesday, sitting on losses of nearly 3% from the previous session after supplies began to resume in Norway and the U.S. Gulf of Mexico and Libya resumed production at its largest oilfield.
Spot Brent crude Oil up 0.23% to $41.83 per barrel. US West Texas Intermediate crude advance 0.25% to $39.55 a barrel.
The yellow metal traded 0.26% lower to 1918.90 dollars per ounce.
Market Wrap: Forex
The dollar bounced back from a three-week low on Tuesday as market players bought it back, particularly against riskier peers, after Chinese authorities appeared to be trying to put a brake on recent rises in the yuan.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.14% to 93.237.
The Euro US Dollar (EUR/USD) widely traded pair lower 0.22% today. This left the pairing trading around $1.17880. GBP/USD down 0.21% to 1.30340.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.15% to 105.450 level.
Other commodity-related currency lower against U.S dollar, AUD/USD fell 0.36% to 0.71810 and NZD/USD up 0.05% to 0.66480.
EUR/USD Intraday: Bias on the upside
Our pivot point is at 1.17730
Preferable Price Action: Take Long positions above level with targets at 1.18100 & 1.18350 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17380 & 1.17130.
Comment: Pair 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 produced
GBP/USD Intraday: Support at 1.30160
Our pivot point is at 1.30160
Preferable Price Action: Long positions above pivot with targets at 1.30650 & 1.30950 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29690 & 1.29390.
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: Trend downside
Our pivot point is at 105.530
Preferable Price Action: Short position below pivot with the target at 105.210 and 105.000 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.850 and 106.060.
Comment: price above 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
AUD/USD Intraday: Bias on the upside
Our pivot point is at 0.71540
Preferable Price Action: Long positions above pivot with targets at 0.72060 & 0.72360 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71040 & 0.70750 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 40.45
Preferable Price Action: Sell crude below pivot with targets at 39.20 and 38.40 in extension.
Alternative Price Action: Above pivots buy Oil with 41.70 & 42.50 as targets.
Comment: Crude 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
XAU/USD Intraday: Support at 1910.80
Our pivot point is at 1910.80
Preferable Price Action: Further upside to 1925.00 & 1933.10 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1897.00 and 1888.70.
Comment: MACD in negative territory and price above it’s 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: Support at 28,660
Our pivot point is at 28,660.00
Preferable Price Action: Take buy positions above pivot with targets at 28,950.00 & 29,150.00 in extension.
Alternative Price Action: Below 28,660.00 looks for further downside to 28,380.00 & 28,180.00.
Comment: Price 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 produced7