Market Wrap: Stocks, Bonds, Commodities
Wall Street closed higher on Monday following an announcement by the U.S. Federal Reserve regarding its corporate bond purchasing program that boosted investor confidence, which had been wavering amid a spike in new COVID-19 cases.
he Fed on Monday announced tweaks to its bond-buying program, widening the range of eligible assets to include all U.S. corporate bonds that satisfied certain criteria.
The Dow Jones Industrial Average higher 0.62% to 25,763.16, the S&P 500 advanced 0.83%, to 3,066.59 and the Nasdaq Composite gained 1.43% to 9,726.02.
Asian stocks were set to follow a late Wall Street surge on Tuesday, after the Federal Reserve’s fresh move to support financial markets through the coronavirus pandemic cheered investors.
The Fed on Monday announced tweaks to its bond-buying program, widening the range of eligible assets to include all U.S. corporate bonds that satisfied certain criteria.
MSCI’s index of Asia-Pacific stocks outside Japan down 1.91% to 627.20 levels. Australian index soared 4.19% to 5,962.30. Japan’s Nikkei advanced 4.97% to 22,600.50
European stocks were lower on Monday, with the Stoxx Europe 50 Index slipped 0.55% to 3,136.40, Germany’s DAX lost 0.32% to 11,911.35 and France’s CAC fell 0.49% to 4,815.72 and U.K.’s FTSE 100 down 0.66% to 6,064.70.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 7.24% to 0.753.
Oil prices dipped on Tuesday on jitters that a rise in coronavirus infections around the world could hurt fuel demand, but hopes that production cuts could be extended kept declines in check.
Spot Brent crude oil rose 0.20% to $39.77 per barrel. US West Texas Intermediate crude futures were gain 0.15% to $37.14 a barrel.
Today, Bullion prices higher 0.42% to $1728.30 per ounce.
Market Wrap: Forex
The dollar nursed losses on Tuesday after the U.S. Federal Reserve announced it would begin broad buying of corporate debt, boosting investor sentiment and appetite for riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.20% to 96.455.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.15% today. This left the pairing trading around $1.13380. The pound traded 0.55% higher to 1.26730.
The Japanese yen fell against the U.S. dollar on Tuesday as demand for risky currency rose. Today US/JPY gain 0.17% to 107.500.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD higher 0.46% to 0.69480 and NZD/USD rose 0.13% to 0.64800.
EUR/USD Intraday: Support at 1.12920
Our pivot point is at 1.12920
Preferable Price Action: Take Long positions above pivot level with targets at 1.13554 & 1.13802 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12318 & 1.12052.
Comment: Pair above 20MA & 55MA 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.26200
Preferable Price Action: Long positions above pivot with targets at 1.26814 & 1.27203 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.25581 & 1.25188.
Comment: Price above20MA & 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
USD/JPY Intraday: Temporary pullback
Our pivot point is at 107.220
Preferable Price Action: Long position above pivot with the target at 107.658 and 107.856 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.793 and 106.579.
Comment: Pair above 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
AUD/USD Intraday: Break resistance level
Our pivot point is at 0.69100
Preferable Price Action: Long positions above pivot with targets at 0.69555 & 0.69808 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68642 & 0.68389 as targets.
Comment: MACD in the positive 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: Bias on Upside
Our pivot point is at 36.70
Preferable Price Action: Buy crude above pivot with targets at 38.15 and 38.90 in extension.
Alternative Price Action: Below pivots sell Oil with 35.25 & 34.44 as targets.
Comment: Bias on the upside for Oil as trend upside.
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: Break support area
Our pivot point is at 1732.00
Preferable Price Action: Further downside to 1720.00 & 1714.06 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1743.82 and 1749.30.
Comment: RSI below 50 level mark and below 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: Strong trend on upside
Our pivot point is at 25900.00
Preferable Price Action: Take buy positions above pivot with targets at 26421.72 & 26677.00 in extension.
Alternative Price Action: Below 25900.00 looks for further downside to 25383.32 & 25103.19.
Comment: Price above 20MA and 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 produced7