Market Wrap: Stocks, Bonds, Commodities
U.S. major index futures dropped from record levels on Tuesday after Apple Inc the most valuable company in the US said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China.
The Dow Jones future down 99 points (0.34%) to 29,297, the S&P 500 future fell 10 points (0.30%) to 3,371 and the Nasdaq Composite future fell 56.25 points (0.58%) to 9,576.
Regarding the U.S. economic data, Analysts see the Economic Sentiment for the European zone to increase to 30 in February from 25.6 in January but expect the same reading in Germany to slip to 20.4 from 26.7.
Asian stock indices declined on Tuesday after Apple Inc said it will not meet its revenue guidance for the March quarter as slowed production and weakened demand in China because of coronavirus outbreak.
Japan’s Nikkei 225 tumbled 1.50% to 23,168 in early trade, after the previous day’s losses and Australia’s ASX 200 declined 0.20% in the morning trade.
European stocks were rose on Monday, with the Stoxx Europe 50 Index up 0.32% to 3,853.27, Germany’s DAX advanced 0.29% to 13,783.89 and France’s CAC jump 0.27% to 6,085.95 and U.K.’s FTSE 100 rose 0.33% to 7,433.25.
U.S. government-bond prices jumped as demand for haven assets grow. The benchmark U.S. 10-year Treasury yields drop 2.30% to 1.551.
Gold at a two-week high on virus fears and today rose 0.20% to $1586 per ounce.
Crude Oil prices fell on Tuesday, tracking losses in financial markets on lingering concerns over the economic impact of the coronavirus in the world and its effect on oil demand.
Brent crude down 1.0% to $57.25 per barrel, while US West Texas Intermediate (WTI) crude declined 0.70% to $51.70.
Market Wrap: Forex
Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, up 0.07% to 99.067.
Moves in the widely traded EUR/USD pair were more subdued, with the euro flat against the dollar and traded at 1.08330
The Australian dollar inched lower against its U.S. dollar on Tuesday after the Reserve Bank of Australia (RBA) increasing calls of further RBA rate cuts.
Other Commodity-linked currencies were broadly down against the greenback. AUD/USD declined 0.34% to 0.66900 and NZD/USD lower 0.26% to 0.64160.
EUR/USD Intraday: May price bounce back temporary
Our pivot point is at 1.08230
Preferable Price Action: Take long positions above pivot level with targets at 1.08426 & 1.08582 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08085 & 1.07993
Comment: The RSI indicator above 50 and MACD on the negative side. Moreover, the pair is trading above its 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
GBP/USD Intraday: Under pressure
Our pivot point is at 1.30144
Preferable Price Action: Short positions below pivot with targets at 1.29884 & 1.29754 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30355 and 1.30520
Comment: The RSI indicator below the 50-level mark and pair below its 55MA & 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: Flat from last 10 day
Our pivot point is at 109.680
Preferable Price Action: Long position above 109.680 with the target at 109.842 and 109.944 in extension
Alternative Price Action: The downside breakout of 109.680 would call for 109.553 and 109.487
Comment: Pair at its 20MA and below 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
AUD/USD Intraday: Resistance at 0.67080
Our pivot point is at 0.67080
Preferable Price Action: Short positions below pivot with targets at 0.66834 & 0.66726 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.67345 & 0.67466 as targets.
Comment: Price slips below 0.6700 as RBA minutes keep a dovish bias
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: Support at 51.59
Our pivot point is at 51.59
Preferable Price Action: Buy above pivot with targets at 52.01 and 52.31 in extension.
Alternative Price Action: Below pivots sell Oil with 51.14 & 50.76 as targets.
Comment: Pair below its 55MA & 20MA and RSI below 5o 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
XAU/USD Intraday: Trend Upside Continues
Our pivot point is at 1582.70
Preferable Price Action: Further upside to 1588.08 & 1590.28
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1577.73 and 1575.09
Comment: Long-term and Short-term 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
Dow jones Intraday: Near support area
Our pivot point is at 29,283
Preferable Price Action: Take long positions above pivot with targets at 29,408.30 & 29,564.60 in extension.
Alternative Price Action: Below 29,283 looks for further downside to 29,188 & 29,130
Comment: Pair is trading 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