Market Wrap: Stocks, Bonds, Commodities
The S&P 500 closed lower on Wednesday as news of spiking pandemic data and the prospect of a new round of economic lockdowns dampened investor optimism over signs of economic recovery.
The Dow Jones Industrial Average fell 170.37 points (0.65%) to 26,119.61, the S&P 500 lost 11.25 points (0.36%) to 3,113.49 and the Nasdaq Composite rose 0.15%, to 9,910.53.
Asian stocks were set to dip on Thursday after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
MSCI’s index of Asia-Pacific stocks outside Japan higher 0.10% to 645.20 levels. Australian index slipped 0.92% to 5,936.50. Japan’s Nikkei fell 0.45% to 22,355.50
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 0.76% to 3,267.26, Germany’s DAX gained 0.54% to 12,382.14 and France’s CAC climbed 0.88% to 4,995.97 and U.K.’s FTSE 100 advanced 0.17% to 6,253.25.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield fell 2.22% to 0.717.
OPEC on Wednesday forecast a gradual recovery in oil demand that has been hammered by the coronavirus crisis and said record supply cuts by the group and other producers were already helping rebalance the market.
Spot Brent crude Oil down 0.20% to $40.63 per barrel. US West Texas Intermediate crude futures were fell 0.55% to $37.75 a barrel.
Today, Bullion prices slipped 0.10% to $1728 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.20% to 96.983.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.15% today. This left the pairing trading around $1.12530. The pound traded 0.10% higher to 1.25600.
The Japanese yen fell against the U.S. dollar on Tuesday as demand for risky currency rose. Today US/JPY lost 0.10% to 106.900.
Other commodity-related currency broadly edged lower against U.S dollar, AUD/USD lost 0.10% to 0.68770 and NZD/USD down 0.15% to 0.64480.
EUR/USD Intraday: Support at 1.12300
Our pivot point is at 1.12300
Preferable Price Action: Take Long positions above pivot level with targets at 1.12781 & 1.13030 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11815 & 1.11548.
Comment: Pair above 20MA & 55MAand 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 1.25270
Preferable Price Action: Long positions above pivot with targets at 1.25781 & 1.26082 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24786 & 1.24516.
Comment: Price above 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 downside
Our pivot point is at 107.100
Preferable Price Action: Short position below pivot with the target at 106.670 and 106.421 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.536 and 107.753.
Comment: Pair below 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: In consolidation zone
Our pivot point is at 0.68540
Preferable Price Action: Long positions above pivot with targets at 0.69010 & 0.69261 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68092 & 0.67849 as targets.
Comment: MACD in the negative 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: Trend upside
Our pivot point is at 37.50
Preferable Price Action: Buy crude above pivot with targets at 38.50 and 39.00 in extension.
Alternative Price Action: Below pivots sell Oil with 36.46 & 35.91 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: Support at 1720.25
Our pivot point is at 1720.25
Preferable Price Action: Further upside to 1731.51 & 1737.20 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1709.17 and 1703.24.
Comment: RSI above 50 level mark and above 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: Strong trend on upside
Our pivot point is at 25800.00
Preferable Price Action: Take buy positions above pivot with targets at 26352.21 & 26601.43 in extension.
Alternative Price Action: Below 25800.00 looks for further downside to 25241.45 & 24982.99.
Comment: Price 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 produced7