Market Wrap: Stocks, Bonds, Commodities
The Nasdaq surged to a record high close on Monday, while the S&P 500 approached its own record level, with both indexes lifted by Nvidia and other technology stocks.
The Dow Jones Industrial Average fell 0.32% to end at 27,844.89 points, while the S&P 500 gained 0.28% to 3,382.10. The Nasdaq Composite climbed 1.00% to 11,129.80.
Asian equities were poised to track Wall Street’s tech-fueled rally on Tuesday that saw the Nasdaq benchmark hit a fresh record while oil prices perked up on Chinese demand and hope that Sino-US trade tensions were easing.
MSCI’s index of Asia-Pacific stocks outside Japan gain 0.10% to 720.10 levels. Australian index rose 0.77% to 6,123.40. Japanese Nikkei lose 0.15% to 23,067.00.
European stocks were higher on Monday, with the Stoxx Europe 50 Index flat to 3,305.85, Germany’s DAX gained 0.15% to 12,920.66 and France’s CAC up 0.18% to 4,971.94 and U.K.’s FTSE 100 rose 0.61% to 6,127.44.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.85% to 0.670.
Oil prices edged lower on Tuesday, mostly holding onto overnight gains after OPEC+ said the producer grouping is almost fully complying with output cuts to support prices amid a drop in demand for fuel due to the coronavirus pandemic.
Spot Brent crude Oil fell 0.22% to $45.26 per barrel. US West Texas Intermediate crude futures were down 0.35% to $42.73 a barrel.
The yellow metal gained on Tuesday, traded 0.42% higher to $1998.20 per ounce.
Market Wrap: Forex
The dollar was down on Tuesday in Asian session as net bearish bets grew to their largest since May 2011
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.28% to 92.588.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.21% today. This left the pairing trading around $1.18960.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY down 0.40% to 105.560 level.
Other commodity related currency broadly higher against U.S dollar, AUD/USD up 0.18% to 0.71830 and NZD/USD slipped 0.21% to 0.65430.
EUR/USD Intraday: Major trend upside
Our pivot point is at 1.18780
Preferable Price Action: Take Long positions above level with targets at 1.19180 & 1.19422 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18376 & 1.18122.
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: Break resistance level
Our pivot point is at 1.31330
Preferable Price Action: Long positions above pivot with targets at 1.31882 & 1.32130 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.30751 & 1.30489.
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
USD/JPY Intraday: Trend on downside
Our pivot point is at 105.790
Preferable Price Action: Short position below pivot with the target at 105.222 and 104.971 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.347 and 106.615.
Comment: price below 20MA & 55MA 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 produced
AUD/USD Intraday: Trend upside
Our pivot point is at 0.72050
Preferable Price Action: Long positions above pivot with targets at 0.72551 & 0.72775 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.71530 & 0.71277 as targets.
Comment: Pair above its 22MA & 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
CRUDEOIL Intraday: Break resistance level at 42.75
Our pivot point is at 42.75
Preferable Price Action: Buy crude above pivot with targets at 43.35 and 43.65 in extension.
Alternative Price Action: Below pivots sell Oil with 42.14 & 41.83 as targets.
Comment: Crude above Its 55MA 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
XAU/USD Intraday: Trend upside
Our pivot point is at 1989.20
Preferable Price Action: Further upside to 2018.75 & 2032.83 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1958.45 and 1944.32.
Comment: RSI at overbought levels and price above its 20MA & 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: Resistance at 27980.00
Our pivot point is at 27980.00
Preferable Price Action: Take sell positions below pivot with targets at 27632.85 & 27482.89 in extension.
Alternative Price Action: Above 27980.00 looks for further upside to 28317.30 & 28464.28.
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 produced7