Market Wrap: Stocks, Bonds, Commodities
American stocks extended their selloff on Wednesday and the Dow john average erased virtually the last of its gains since President Donald Trump’s 2017 inauguration, as the expanding of the coronavirus pandemic threatened to world economy.
US major indices, The Dow Jones 30 declined 1,338.48 points (6.31%) to 19,899, the S&P 500 fell 131 points (5.19%) to 2,398.11, and the Nasdaq Composite lost 345 points (4.69%) to 6,990.
Asian major stock indices struggled to find their footing in volatile session on Thursday, as stimulus from the European Central Bank (ECB) rise up sentiment while the world struggles to contain the coronavirus spreading.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.58% to 536 level. Australian shares plunged 6.43%, while Japan’s Nikkei stock index slid 1.80%.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index declined 6.16% to 2,530, Germany’s DAX dropped 5.47% to 8,939 and France’s CAC fell 5.94% to 3,754 and U.K.’s FTSE 100 down 4.05% to 5,080.
Benchmark 10-year U.S. Treasury advanced as demand for safe heaven rose on Thursday, today down 0.30% to 1.254.
Crude Oil prices soared as much as nearly 15% on Thursday, after plunging yesterday and made low of 20.55 but it’s a relief rally that may yet be short-lived but which was stoked by economic stimulus efforts to ward off a global coronavirus recession.
Brent crude was up 5%, at $27.50 a barrel after tumbling 13% on Wednesday in the third day of relentless selling. US oil gained 11%, to $23.51 a barrel after plunging nearly 25% in the previous session.
Market Wrap: Forex
Today, U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.23% to 101.715.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.15% today. This left the pairing trading around $1.10110.
The Japanese yen advanced against the U.S. dollar on Wednesday as the new coronavirus cases spread more in European countries. Today USD/JPY advanced 0.77% to 108.880 level.
Other commodity related currency broadly lower against U.S dollar, AUD/USD slumped 2.40 to 0.56400 and NZD/USD plunged 2.5% to 0.55960.
EUR/USD Intraday: Trend Continues down
Our pivot point is at 1.09643
Preferable Price Action: Take short positions below pivot level with targets at 1.08836 & 1.08400 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.10498 & 1.10922.
Comment: Pair below 55MA and MACD in negative 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
GBP/USD Intraday: Bias Remain Bearish
Our pivot point is at 1.16460
Preferable Price Action: Short positions below pivot with targets at 1.14177 & 1.13101 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.18723 and 1.19818.
Comment: The RSI indicator below 50 level mark and pair 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: Trend upside intact
Our pivot point is at 108.323
Preferable Price Action: Long position above pivot with the target at 109.966 and 110.607 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.973 and 106.321.
Comment: Pair 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
AUD/USD Intraday: Long term trend down
Our pivot point is at 0.57281
Preferable Price Action: Short positions below pivot with targets at 0.55565 & 0.54808 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.59094 & 0.59826 as targets.
Comment: Pair below 55MA and MACD in negative 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
CRUDEOIL Intraday: Made low of 20.53
Our pivot point is at 24.30
Preferable Price Action: Sell below pivot with targets at 21.86 and 20.54 in extension.
Alternative Price Action: Above pivots buy Oil with 26.83 & 28.07 as targets.
Comment: MACD in the negative zone and pair below 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
XAU/USD Intraday: at multi-support area
Our pivot point is at 1465.57
Preferable Price Action: Further upside to 1504.43 & 1519.33 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1431.08 and 1416.99
Comment: RSI at 50 level and 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 produced
Dow Jones Intraday: force-fully downtrend continues
Our pivot point is at 19990.00
Preferable Price Action: Take short positions below pivot with targets at 19,029.42 & 18,634.85 in extension.
Alternative Price Action: Above 20,885 looks for further upside to 21,100.87 & 21,548.55.
Comment: Pair is trading below its 20MA & 55MA and RSI below 50 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