Market Wrap: Stocks, Bonds, Commodities
American stocks managed to recover the early loss on Thursday after recent deep slid as policymakers around the world took further emergency actions and reduce the Interest rate to try to help financial markets cope with deep coronavirus-driven economic damage.
The Dow Jones Industrial Average advanced 188 points (0.96%) to 20,088, the S&P 500 added 11.30 points (0.47%) to 2,410 and the Nasdaq Composite rose 161 points (2.3%) to 7,150.60.
Asian major stock indices sought a reprieve on Friday as Wall Street eked out gains, bonds rallied and oil boasted its biggest bounce on record, though a panicked rush into U.S. dollars suggested the crisis was far from done.
MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 5% to 531 level, while the Australian market rose 2.9%. Japan’s Nikkei went the other way and dipped 1%.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index rose 3.89% to 2,551, Germany’s DAX advanced 4.41% to 8,979 and France’s CAC up 3.94% to 4,000 and U.K.’s FTSE 100 rose 2.09% to 5,260.
Benchmark 10-year U.S. Treasury advanced as demand for safe heaven rose on Thursday, today down 5.85% to 1.064.
U.S. crude prices closed up 24% on Thursday, in a U-turn to the previous day’s losses, after the Trump administration said it will buy oil to top up the nation’s reserves and support American drillers hurt by the coronavirus crisis and ill-timed production hikes by Saudi rivals.
Brent crude soared 4.80% at $31.500 per barrel, the lowest since early 2016. while US West Texas Intermediate (WTI) crude rose 6.00% to $27.640 per barrel.
The yellow metal was on the rise Friday morning even as investors reduce their risk in an increasingly unpredictable market. Spot Gold rose 2.00% to $1510 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 1.56% to 101.970.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.95% today. This left the pairing trading around $1.07950.
The Japanese yen advanced against the U.S. dollar on Friday as the new coronavirus cases spread more in European countries. Today USD/JPY down 0.77% to 109.800 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD soared 3.61% to 0.59450 and NZD/USD advanced 3.10% to 0.58400.
EUR/USD Intraday: Temporary bounce back
Our pivot point is at 1.08710
Preferable Price Action: Take short positions below pivot level with targets at 1.06949 & 1.06207 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.10374 & 1.11049.
Comment: Pairs gives bounce back against U.S. dollar
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: Break Resistance level
Our pivot point is at 1.16470
Preferable Price Action: long positions above pivot with targets at 1.19095 & 1.20003 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.14061 and 1.13178.
Comment: The RSI indicator above 50 level mark and pair above its 55MA & 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
JPY/USD Intraday: Trend upside intact
Our pivot point is at 109.100
Preferable Price Action: Long position above pivot with the target at 110.358 and 110.961 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.808 and 107.219.
Comment: Pair below 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
AUD/USD Intraday: Break Resistance level
Our pivot point is at 0.58500
Preferable Price Action: long positions above pivot with targets at 0.60349 & 0.61038 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.56578 & 0.55829 as targets.
Comment: Pair above 55MA & 20MA and MACD in the 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
CRUDEOIL Intraday: 34% rose in just two day
Our pivot point is at 25.30
Preferable Price Action: Buy above pivot with targets at 28.45 and 29.47 in extension.
Alternative Price Action: Below pivots sell Oil with 22.32 & 21.24 as targets.
Comment: MACD in the positive zone and pair above 55MA & 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
XAU/USD Intraday: Take bounce back from multi-support area
Our pivot point is at 1496.20
Preferable Price Action: Further upside to 1519.62 & 1529.47 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1472.27 and 1462.52.
Comment: price above 20MA & 55MA 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
Dow Jones Intraday: Break previous Resistance level
Our pivot point is at 20225.50
Preferable Price Action: Take long positions above pivot with targets at 21237.29 & 21624.22 in extension.
Alternative Price Action: Below 20,225 looks for further downside to 19259.36 & 18927.45.
Comment: Pair is trading above its 20MA & 55MA and RSI above 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