Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended lower on Friday after an up-and-down session as investors weighed spiking cases of COVID-19 and Apple Inc’s announcement of fresh store closures against the anticipated stimulus and continued economic recovery.
The Dow Jones Industrial Average fell 208.64 points (0.80%) to 25,871.46, the S&P 500 lost 17.53 points (0.56%) to 3,097.81 and the Nasdaq Composite added 0.03%, to 9,946.12.
Stocks in Asia were trading flat on Monday morning as the number of coronavirus cases stateside soared again.
MSCI’s index of Asia-Pacific stocks outside Japan lower 0.30% to 648.20 levels. Australian index flat to 5,944.50. Japan’s Nikkei lost 0.18% to 22,437.27.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 0.59% to 3,269.10, Germany’s DAX gained 0.40% to 12,330.76 and France’s CAC climbed 0.42% to 4,979.45 and U.K.’s FTSE 100 advanced 1.10% to 6,292.60.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.30% to 0.697.
Oil prices nudged higher on Monday on tighter supplies from major producers, but concerns that a record rise in global coronavirus cases could curb a recovery in fuel demand checked gains.
Spot Brent crude Oil flat to $42.19 per barrel. US West Texas Intermediate crude slipped 0.10% to $39.79 a barrel.
Gold prices rose on Monday to their highest in a month as surging coronavirus infections intensified concerns over a delay in global economic recovery and prompted investors to seek the safe-haven metal. Bullion prices higher 0.64% to $1751.50 per ounce.
Market Wrap: Forex
The U.S. dollar touched a three-week high and commodity currencies were stalled on Monday, as renewed worries about the second wave of coronavirus infections sent investors into safer assets.
The greenback was marginally lower against the Australian and New Zealand dollars, and steady on the yuan, euro and British pound.
The Euro US Dollar (EUR/USD) widely traded pair gain 0.25% today. This left the pairing trading around $1.12020. The pound traded 0.27% higher to 1.23890.
The Japanese yen fell against the U.S. dollar on Tuesday as demand for risky currency rose. Today US/JPY rose 0.10% to 106.950.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD gained 0.52% to 0.68670 and NZD/USD advancing 0.45% to 0.64340.
EUR/USD Intraday: Support at 1.11700
Our pivot point is at 1.11700
Preferable Price Action: Take Long positions above pivot level with targets at 1.12275 & 1.12523 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.11143 & 1.10913.
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: Bias on Upside
Our pivot point is at 1.23500
Preferable Price Action: Long positions above pivot with targets at 1.24204 & 1.24500 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22827 & 1.22562.
Comment: Price above 20MA & 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: Support at 106.780
Our pivot point is at 106.780
Preferable Price Action: Long position above pivot with the target at 107.145 and 107.345 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.422 and 106.216.
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
AUD/USD Intraday: In a consolidation zone
Our pivot point is at 0.68460
Preferable Price Action: Long positions above pivot with targets at 0.68903 & 0.69152 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68032 & 0.67784 as targets.
Comment: MACD in the positive zone 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: Trend upside
Our pivot point is at 39.20
Preferable Price Action: Buy crude above pivot with targets at 40.25 and 40.65 in extension.
Alternative Price Action: Below pivots sell Oil with 38.14 & 37.71 as targets.
Comment: Crude above its 20MA and MACD in positive zone
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 1745.00
Preferable Price Action: Further upside to 1755.09 & 1760.14 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1734.77 and 1729.25.
Comment: RSI above 50 level mark and price above 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: Strong trend on upside
Our pivot point is at 256000.00
Preferable Price Action: Take buy positions above pivot with targets at 25982.39 & 26232.08 in extension.
Alternative Price Action: Below 25600.00 looks for further downside to 25207.97 & 24964.22.
Comment: Price above 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 produced7