Market Wrap: Stocks, Bonds, Commodities
Wall Street’s three major indexes closed lower for the second day in a row after Federal Reserve Chairman Jerome Powell warned on Wednesday of extended economic weakness due to the coronavirus pandemic and called for Congress to agree on additional fiscal support.
The Dow Jones Industrial Average fell 516.81 points, or 2.17%, to 23,247.97, the S&P 500 lost 50.12 points, or 1.75%, to 2,820 and the Nasdaq Composite dropped 139.38 points, or 1.55%, to 8,863.17.
Asian equities were set to slump on Thursday after the head of the Federal Reserve warned of a “significantly worse” U.S. recession than any downturn since World War Two because of coronavirus pandemic fallout, sentiments that drove bonds higher on a safety bid.
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 decline 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 crept up on Thursday, supported by a surprise decline of US crude inventories, but gains were capped by worries that a potential second wave of the coronavirus pandemic might trigger fresh lockdowns and slam fuel demand once again.
Brent crude futures rose 0.2% to $29.25 per barrel. US West Texas Intermediate crude futures were up 0.3% to $25.37 a barrel.
Today, gold prices up 0.10% to $1703.75 per ounce.
Market Wrap: Forex
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 DOWNSIDE
Our pivot point is at 1.08250
Preferable Price Action: Take Short positions below pivot level with targets at 1.07829 & 1.07577 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08668 & 1.08911.
Comment: pair belove 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
GBP/USD Intraday: Trend downside
Our pivot point is at 1.22200
Preferable Price Action: Short positions below pivot with targets at 1.21618 & 1.21317 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.22775 & 1.23090.
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: Bias on upside
Our pivot point is at 106.650
Preferable Price Action: Long position above pivot with the target at 107.112 and 107.360 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.199 and 105.949.
Comment: Pair below 20MA and RSI below 50 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 0.64250
Our pivot point is at 0.64250
Preferable Price Action: Long positions above pivot with targets at 0.64623 & 0.64870 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.63877 & 0.63626 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 25.65
Preferable Price Action: Buy crude above pivot with targets at 26.64 and 27.10 in extension.
Alternative Price Action: Below pivots sell Oil with 24.66 & 24.18 as targets.
Comment: RSI above 50 levels and price above 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 the upside
Our pivot point is at 1710.00
Preferable Price Action: Further upside to 1723.02 & 1728.15 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1697.89 and 1692.61.
Comment: RSI above 50 level mark and price above 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: Trend downside
Our pivot point is at 23300.00
Preferable Price Action: Take sell positions below pivot with targets at 22922.91 & 22669.20 in extension.
Alternative Price Action: Above 23300.00 looks for further upside to 23681.60 & 23943.10.
Comment: Inde below 20MA & 55MA 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 produced7