Market Wrap: Stocks, Bonds, Commodities
Wall Street ended sharply lower on Thursday, with the Nasdaq tumbling 3%, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe.
The Dow Jones Industrial Average fell 0.46% to end at 32,862.3 points, while the S&P 500 lost 1.48% to 3,915.47. The Nasdaq Composite dropped 3.02% to 13,116.17.
Asian share markets slipped on Friday after a spike in global bond yields soured sentiment toward richly priced tech stocks, while a stampede out of crowded positions may have put an end to the bull run in crude oil.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.16% to 877.30 levels. Australian index declined 0.56% to 6,708.20. Japanese Nikkei traded 1.41% lower to 29,792.05.
European stocks were lower on Friday, with the Stoxx Europe 50 Index lost 0.48% to 3,848.50, Germany’s DAX down 0.26% to 14,737.35 and France’s CAC lower 0.62% to 6,025.30 and U.K.’s FTSE 100 fell 0.61% to 6,737.96.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 2.51% to 1.686.
Oil prices edged up on Friday but were still down more than 8% for the week as a new wave of COVID-19 infections across Europe spurred fresh lockdowns and dampened hopes that an anticipated recovery in fuel demand would come soon.
Spot Brent crude oil gained 1.67% to $61.02 per barrel. US West Texas Intermediate crude rose 1.49% to $64.22 a barrel.
The yellow metal traded 0.57% higher to 1743.57 dollars per ounce.
Market Wrap: Forex
The safe-haven U.S. dollar held firmer on Friday, supported by higher Treasury yields and falling stock markets, as investors digested the Federal Reserve’s pushback against expectations of any early interest-rate hikes.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.15% to 91.730.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.07% today. This left the pairing trading around $1.19220.
The Japanese yen fell against the U.S. dollar on Friday as stock pushes higher. Today US/JPY fell 0.21% to 108.640 level.
Other commodity-related currency higher against U.S dollar, AUD/USD up 0.17% to 0.77680 and NZD/USD rose 0.25% to 0.71820.
EUR/USD Intraday: Support at 1.19080
Our pivot point is at 1.19080
Preferable Price Action: Take long positions above pivot level with targets at 1.19380 & 1.1930 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.18790 & 1.18640.
Comment: Pair 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
GBP/USD Intraday: Support at 1.39030
Our pivot point is at 1.39030
Preferable Price Action: Buy positions above pivot with targets at 1.39430 & 1.39630 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38640 & 1.38440.
Comment: Price above its 20MA 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
USD/JPY Intraday: In a consolidation zone
Our pivot point is at 108.900
Preferable Price Action: Sell position below with the target at 108.700 and 108.600 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.100 and 109.200.
Comment: price above 20MA & 50MA 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: Trend upside
Our pivot point is at 0.77450
Preferable Price Action: Buy Positions above pivot with targets at 0.77800 & 0.78000 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77100 & 0.76900 as targets.
Comment: Pair above its 20MA 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 on the downside
Our pivot point is at 61.30
Preferable Price Action: Below pivots sell Oil with 59.70 & 58.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 63.00 and 64.00 in extension.
Comment: Crude below its 20MA & 55MA and MACD in negative 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
XAU/USD Intraday: Trend upside
Our pivot point is at 1737.60
Preferable Price Action: Further upside to 1746.70 & 1751.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1728.10 and 1723.40.
Comment: MACD in positive territory 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: Resistance at 32,980.00
Our pivot point is 32,980.00
Preferable Price Action: Take sell positions below pivot with targets at 32,870.00 & 32,800.00.
Alternative Price Action: Above 32,980.00 looks for further upside to 33,090.00 & 33,160.00.
Comment: Price below 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 produced7