Market Wrap: Stocks, Bonds, Commodities
American major stock indices jumped on Monday and the S&P 500 closed at a 10-week high, on encouraging early-stage data for a potential coronavirus vaccine and on the promise of more stimulus to lift an economy beaten down by the pandemic.
The Dow Jones Industrial Average climbed 911.95 points (3.85%) to 24,598.30, the S&P 500 advanced 90.30 points (3.16%) to 2,954and the Nasdaq Composite rose 220.27 points (2.44%) to 9,234.90.
Asian major indices were set to rise on Tuesday after data from an early-stage trial for a coronavirus vaccine lifted hopes for a near-term economic recovery, sending global equity markets and oil prices surging.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.56% to 608.30 levels. Australian index rose 1.81% to 5,559.50 and Japanese market higher 1.49% to 20,433.45.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 5.10% to 2,911.88, Germany’s DAX gained 5.67% to 11,058.87 and France’s CAC climbed 5.16% to 4,498.34 and U.K.’s FTSE 100 advanced 4.29% to 6,048.59.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield down 3.55% to 0.716.
Oil prices rose on Tuesday, extending gains for a fourth straight session, amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.
Spot Brent crude Oil rose 0.50% to $34.73 per barrel. US West Texas Intermediate crude futures were flat to $31.66 a barrel.
Today, gold prices slipped 0.15% to $1732.40 per ounce.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.25% to 99.433.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.26% today. This left the pairing trading around $1.09390. The pound traded 0.50% higher to 1.22500.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY rose 0.15% to 107.440.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.51% to 0.65560 and NZD/USD climbed 0.78% to 0.60840.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.09100
Preferable Price Action: Take Long positions above pivot level with targets at 1.09623 & 1.09880 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08584 & 1.08315.
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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.22200
Preferable Price Action: Long positions above pivot with targets at 1.22882 & 1.23176 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21513 & 1.21224.
Comment: MACD in the positive zone and pair 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
JPY/USD Intraday: Bias on the upside
Our pivot point is at 107.250
Preferable Price Action: Long position above pivot with the target at 107.684 and 107.932 in extension.
Alternative Price Action: The downside breakout of pivot would call for 106.806 and 106.545.
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: Break consolidation zone
Our pivot point is at 0.65300
Preferable Price Action: Long positions above pivot with targets at 0.65830 & 0.66079 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64786 & 0.64537 as targets.
Comment: MACD in the positive zone 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
CRUDEOIL Intraday: Support at 31.25
Our pivot point is at 31.25
Preferable Price Action: Buy crude above pivot with targets at 32.60 and 33.30 in extension.
Alternative Price Action: Below pivots sell Oil with 29.86 & 29.12 as targets.
Comment: RSI at 50 levels and price 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
XAU/USD Intraday: Trend may reverse
Our pivot point is at 1737.00
Preferable Price Action: Further downside to 1721.02 & 1713.37 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1751.36 and 1759.70.
Comment: RSI below 50 level mark and price below 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: Index rise continuously
Our pivot point is at 24500.00
Preferable Price Action: Take buy positions above pivot with targets at 25001.83 & 25260.80 in extension.
Alternative Price Action: Below 24500.00 looks for further downside to 23965.94 & 23699.23.
Comment: Inde above 20MA & 55MA and also 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 produced7