Market Wrap: Stocks, Bonds, Commodities
Wall Street’s main indexes closed lower on Monday as Washington lawmakers still appeared to struggle to reach an agreement on coronavirus stimulus ahead of a Tuesday deadline that would make a relief package possible ahead of the November 3 elections.
The Dow Jones Industrial Average fell 410.89 points (1.44%) to 28,195.42, the S&P 500 lost 56.89 points (1.63%) to 3,426.92 and the Nasdaq Composite dropped 192.67 points (1.65%) to 11,478.88.
Asian stocks came under pressure on Tuesday as a deadline for U.S. lawmakers to pass an economic stimulus bill approached and record daily coronavirus infections in Europe ignited concerns about more severe lockdowns.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.16% to 745.30 levels. Australian index lost 0.72% to 6,184.60. Japanese Nikkei dropped 0.44% to 23,567.10.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index gained 0.46% to 3,250.20, Germany’s DAX down 0.10% to 12,845.25 and France’s CAC surged 0.77% to 4,967.28 and U.K.’s FTSE 100 advance 0.42% to 5,909.75.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield surged 2.23% to 0.779.
Oil edged lower on Monday, weighed by concerns over surging coronavirus cases globally and by Libya’s plan to boost output, but hopes for a U.S. fiscal package lent some support.
Spot Brent crude Oil fell 0.40% to $42.44 per barrel. US West Texas Intermediate crude lost 0.22% to $40.97 a barrel.
The yellow metal traded 0.38% lower to 1901.80 dollar per ounce.
Market Wrap: Forex
The dollar was up on Tuesday, with doubts over the status of the latest U.S. stimulus measures continuing to linger. The Chinese yuan continued near a two-year high against the dollar over signs of continued economic recovery in the country.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.05% to 93.472.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.17640. GBP/USD fell 0.18% to 1.29240.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY rose 0.10% to 105.520 level.
Other commodity related currency lower against U.S dollar, AUD/USD lost 0.37% to 0.70430 and NZD/USD down 0.48% to 0.65720.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.17520
Preferable Price Action: Take Long positions above level with targets at 1.17900 & 1.18100 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.17160 & 1.16950.
Comment: Pair above its 55MA and RSI near 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: Trend downside
Our pivot point is at 1.29660
Preferable Price Action: Short positions below pivot with targets at 1.28950 & 1.28650 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30380 & 1.30670.
Comment: Price below 55MA & 20MA and RSI below 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: Major support at 105.470
Our pivot point is at 105.470
Preferable Price Action: Long position above pivot with the target at 105.750 and 105.950 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.180 and 104.970.
Comment: price above 55MA & 20MA 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 downside
Our pivot point is at 0.70660
Preferable Price Action: Short positions below pivot with targets at 0.70250 & 0.70030 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.71050 & 0.71250 as targets.
Comment: Pair below its 55MA & 20MA and RSI below 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: Support at 40.70
Our pivot point is at 40.70
Preferable Price Action: Buy crude above pivot with targets at 41.40 and 41.80 in extension.
Alternative Price Action: Below pivots sell Oil with 40.00 & 39.60 as targets.
Comment: Crude above Its 55MA & 20MA 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
XAU/USD Intraday: Support at 1897.80
Our pivot point is at 1897.80
Preferable Price Action: Further upside to 1908.70 & 1913.70 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1887.50 and 1882.20.
Comment: MACD in negative territory and price above its 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: Bias on the upside
Our pivot point is at 28,250.00
Preferable Price Action: Take buy positions above pivot with targets at 28,500.00 & 28,650.00 in extension.
Alternative Price Action: Below 28,250.00 looks for further downside to 28,020.00 & 27,870.00.
Comment: Price above its 55MA & 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 produced7