Market Wrap: Stocks, Bonds, Commodities
US stocks fell on Wednesday as dismal economic data and first-quarter earnings reports compounded concerns over the extent of damage from the coronavirus outbreak.
The Dow Jones Industrial Average slipped 444.63 points (1.86%) to 23,505, the S&P 500 declined 2.18%, to 2,783.25 and the Nasdaq index fell 122.56 points to 8,392.45.
World stock markets fell on Thursday, while bonds and the dollar held on to hefty gains, after a coronavirus-driven plunge in US retail sales and factory production and increasing gloomy economic outlooks for Asia.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.64% to 583.25 levels. Australian index slipped 1.58% to 5,382. Japan Nikkei dropped 1.51% to 19,226.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index down 3.75% to 2808.20, Germany’s DAX fell 3.90% to 10,279.76 and France’s CAC lost 3.76% to 4,353.72 and U.K.’s FTSE 100 slipped 3.40% to 5,597.88.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield up 0.72% to 0.646.
Oil rose on Thursday, with US crude rebounding from near-20-year lows in the previous session on hopes that a big build-up in US inventories may mean producers have little option but to deepen output cuts as the coronavirus pandemic ravages demand.
Brent crude oil advanced 1.10% to $30.530 per barrel. while US West Texas Intermediate (WTI) crude rose 0.25% to $26.58 per barrel.
The Yellow metal was up in the early morning on Thursday as investors continue to scared the economic damage from the COVID-19 pandemic. Today, Yellow metal higher 0.20% to $1714 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, advanced 0.43% to 99.912.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.22% today. This left the pairing trading around $1.08840.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY advanced 0.40% to 107.870 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD slipped 0.53% to 0.62840 and NZD/USD fell 0.48% to 0.59600.
EUR/USD Intraday: Bias remains bearish
Our pivot point is at 1.09150
Preferable Price Action: Take short positions below pivot level with targets at 1.08400 & 1.07956 in extension.
Alternative Price Action: Below pivot looks for further upside at 1.09875 & 1.10261.
Comment: pair below 50MA & 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.24450
Preferable Price Action: Long positions above pivot with targets at 1.25293 & 1.25750 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.23672 & 1.23220.
Comment: The RSI indicator near 50 levels and pair 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
JPY/USD Intraday: Demand for safe asset rise
Our pivot point is at 107.550
Preferable Price Action: Long position above pivot with the target at 108.187 and 108.602 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.936 and 106.510.
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
AUD/USD Intraday: Bias on downside
Our pivot point is at 0.63220
Preferable Price Action: Short positions below pivot with targets at 0.62597 & 0.62150 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.63833 & 0.64252 as targets.
Comment: MACD in negative zone and RSI at 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
CRUDEOIL Intraday: May take support at 26.35
Our pivot point is at 26.35
Preferable Price Action: Buy crude above pivot with targets at 27.97 and 29.12 in extension.
Alternative Price Action: Below pivots sell Oil with 24.81 & 23.73 as targets.
Comment: MACD in the positive zone and RSI above 50 level mark.
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: Uptrend Continues
Our pivot point is at 1709
Preferable Price Action: Further upside to 1740.68 & 1755.47 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1652.21 and 1667.88.
Comment: demand for safe heaven rise as investor worried rose because od COVID-19
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: Uptrend continues
Our pivot point is at 23485.00
Preferable Price Action: Take buy positions above pivot with targets at 24,051 & 24,4506 in extension.
Alternative Price Action: Below 23,485 looks for further downside to 22,932 & 22,585.
Comment: Index above 20MA & 55MA and also MACD in positive side.
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