Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indices inched lower on Friday as uncertainties surrounding the coronavirus breakout and downbeat economic data put investor on worried sentiment.
The Dow Jones Industrial Average down 126.31 points (0.43%) to 29,297, the S&P 500 fell 5.97 points (0.18%) to 3,367.97 and the Nasdaq Composite fell 14.85 points (0.15%) to 9,697.12.
Regarding the U.S. economic data, Friday Core Retail Sales m/m rise to 0.3% as expected from 0.3% earlier.
Trading is expected to be light as U.S. stocks and bond markets will be closed on Monday for a public holiday.
Asian stock indices were mixed on Monday, with Japan’s Nikkei 225 underperform its regional peers after data showed the country’s economy shrank 1.60% at the fastest pace in six years.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.34% to 692.85. Australian shares and South Korea’s KOSPI index were each dropped 0.40% and Japan’s Nikkei fell more than 1.00%.
European stocks were slipped on Thursday, with the Stoxx Europe 50 Index down 0.15% to 3,840.97, Germany’s DAX flat to 13,744.21 and France’s CAC slid 0.39% to 6,069.35 and U.K.’s FTSE 100 down 0.58% to 7,409.13.
U.S. government-bond prices jumped as demand for haven assets grow. The benchmark U.S. 10-year Treasury yields flat to 1.619.
Oil eased on Monday after the biggest weekly gain since September as hopes for an OPEC+ held an emergency meeting on the virus impact on Oil demand, while Traders assessed Chinese stimulus measures to soften the economic impact on world second-largest oil consumer economy.
Brent crude flat to $57.55 per barrel, while US West Texas Intermediate (WTI) crude gained 0.20% to $52.15.
Market Wrap: Forex
Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, up 0.09% to 99.040.
The euro, which hit a 33-month low of $1.0817 on Friday, flat so far on today but down 2.3% from the start of the month.
Japanese yen weakened against the US dollar as Japan’s economy contracted well below 0.9% figure to 1.6%.
Other Commodity-linked currencies were broadly mixed against the greenback. AUD/USD rose 0.24% to 0.67290 and NZD/USD lower -0.15% to 0.64320.
EUR/USD Intraday: May take support at 1.08310
Our pivot point is at 1.08310
Preferable Price Action: Take short positions below pivot level with targets at 1.08152 & 1.08030in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08501& 1.09635
Comment: The RSI indicator below 50 and MACD on the negative side. Moreover, the pair is trading below its 55MA and 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: Intraday resistance at 1.30570
Our pivot point is at 1.30570
Preferable Price Action: Short positions below pivot with targets at 1.30280 & 1.30090 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30800 and 1.30980
Comment: The RSI indicator near the 50-level mark and pair above its 55MA and 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
JPY/USD Intraday: Intraday support at 109.730
Our pivot point is at 109.730
Preferable Price Action: Long position above 109.730 with the target at 109.899 and 109.976 in extension
Alternative Price Action: The downside breakout of 109.730 would call for 109.620 and 109.555
Comment: Pair above its 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 produced
AUD/USD Intraday: Support at 0.67120
Our pivot point is at 0.67120
Preferable Price Action: Long positions above pivot with targets at 0.67360 & 0.67490 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.66940 & 0.66797 as targets.
Comment: Price bounce back from its multi-support area
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 51.66
Our pivot point is at 51.66
Preferable Price Action: Buy above 51.66 with targets at 52.32 and 52.67 in extension.
Alternative Price Action: Below pivots sell Oil with 51.15 & 50.77 as targets.
Comment: Pair above its 55MA & 20MA and RSI above 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 1580.50
Preferable Price Action: Further upside to 1584.58 & 1586.28
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1576.67 and 1573.55
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: Upside Trend Continue
Our pivot point is at 29,414
Preferable Price Action: Take long positions above pivot with targets at 29,534 & 29,595 in extension.
Alternative Price Action: Below 29,414 looks for further downside to 29,311 & 29,233.
Comment: Pair is trading above its 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