Market Wrap: Stocks, Bonds, Commodities
Wall Street finished weaker on Wednesday, led lower by Amazon and Microsoft, as investors lost hope that a U.S. fiscal stimulus would be approved before the presidential election in November.
The Dow Jones Industrial Average down 0.60% to end at 28,514 points, while the S&P 500 fell 0.66% to 3,488.67. The Nasdaq Composite slipped 0.81% to 11,768.73.
Asian markets were off to a mixed start on Thursday as hopes of U.S. fiscal stimulus before the presidential election faded and a record number of new coronavirus infections in parts of Europe propelled investors toward safe-havens such as gold.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.80% to 743.50 levels. Australian index gained 0.50% to 6,210.30. Japanese Nikkei dropped 0.51% to 23,507.23.
European stocks were lower on Thursday, with the Stoxx Europe 50 Index lost 1.20% to 3,233.35, Germany’s DAX down 1.27% to 12,863.65 and France’s CAC slipped 1.24% to 4,880.44 and U.K.’s FTSE 100 fell 1.22% to 5,863.50.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield plunged 2.26% to 0.706.
Oil prices rose slightly in early trade on Thursday after data showed U.S. crude stockpiles fell last week, adding to 2% gains overnight, as OPEC and its allies were seen fully complying in September with their pact to curb output.
Spot Brent crude oil fell 0.37% to $43.14 per barrel. US West Texas Intermediate crude lost 0.44% to $40.86 a barrel.
The yellow metal traded 0.32% lower to 1897.60 dollars per ounce.
Market Wrap: Forex
The dollar was down on Thursday morning in Asia, despite the ever-rising number of COVID-19 cases and the U.S. Congress’ lack of progress towards passing the latest stimulus measures ahead of the presidential election continuing to dampen investor sentiment.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.16% to 93.515.
The Euro US Dollar (EUR/USD) widely traded pair fell today. This left the pairing trading around $1.17360. GBP/USD down 0.13% to 1.29930.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.10% to 105.260 level.
Other commodity-related currency higher against U.S dollar, AUD/USD advanced 0.05% to 0.71640 and NZD/USD up 0.06% to 0.66520.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.17610
Preferable Price Action: Take Short positions below level with targets at 1.17220 & 1.17020 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.17990 & 1.18190.
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: Bias on the upside
Our pivot point is at 1.29790
Preferable Price Action: Long positions above pivot with targets at 1.30320 & 1.30620 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29320 & 1.29000.
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 upside
Our pivot point is at 105.150
Preferable Price Action: Long position above pivot with the target at 105.470 and 105.670 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.850 and 104.650.
Comment: price above 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: Trend on the downside
Our pivot point is at 0.71430
Preferable Price Action: Short positions below pivot with targets at 0.70750 & 0.70450 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72080 & 0.72380 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 upside
Our pivot point is at 40.85
Preferable Price Action: Buy crude above pivot with targets at 41.40 and 41.80 in extension.
Alternative Price Action: Below pivots sell Oil with 40.30 & 39.90 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Trend downside
Our pivot point is at 1905.70
Preferable Price Action: Further downside to 1892.00 & 1884.20 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1918.00 and 1925.50.
Comment: MACD in negative territory and price below its 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: Break support levels
Our pivot point is at 28,530.00
Preferable Price Action: Take sell positions below pivot with targets at 28,260.00 & 28,130.00 in extension.
Alternative Price Action: Above 28,530.00 looks for further upside to 28,800.00 & 28,930.00.
Comment: Price below its 55MA & 20MA 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 produced7