Market Wrap: Stocks, Bonds, Commodities
U.S. major stock indices declined Tuesday as rising virus cases around the world led to renewed concern about their economic impact. Treasuries held overnight gains.
The Dow Jones Industrial Average fell 256.33 points (0.75%) to 33,821.30. The S&P 500 lost 28.32 points (0.68%) at 4,134.94; while the Nasdaq Composite dropped 128.50 points (0.92%) to 13,786.27.
Asian shares and U.S. stock futures fell on Wednesday as concern about a resurgence of coronavirus cases in some countries cast doubt on the strength of global growth and demand for crude oil.
MSCI’s index of Asia-Pacific stocks outside Japan slump 1.17% to 873.76 levels. Australian index down 0.29% to 6,997.50. Japanese Nikkei traded 2.03% lower to 28,508.55.
European stocks were advance on Wednesday, with the Stoxx Europe 50 Index gained 0.79% to 3,971.73, Germany’s DAX rose 0.42% to 15,192.75 and France’s CAC higher 0.62% to 6,203.60 and U.K.’s FTSE 100 advance 0.64% to 6,904.04.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 1.17% to 1.580.
Oil prices fell for a second day on Wednesday on concerns that soaring COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer.
Spot Brent crude oil fell 0.29% to $66.38 per barrel. US West Texas Intermediate crude slipped 0.41% to $62.41 a barrel.
The yellow metal traded advance 0.28% to 1783.26 dollars per ounce.
Market Wrap: Forex
The dollar languished on Wednesday, hovering just above a seven-week low with subdued U.S. bond yields reducing the currency’s yield appeal.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.05% to 91.280.
The Euro US Dollar (EUR/USD) widely traded pair lower 0.15% today. This left the pairing trading around $1.20140.
The Japanese yen fell against the U.S. dollar on Tuesday as the stock pushes lower. Today US/JPY gained 0.15% to 108.220 level.
Another commodity-related currency higher against the U.S dollar, AUD/USD flat to 0.77220 and NZD/USD rose 0.15% to 0.71820.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.20200
Preferable Price Action: Take long positions above pivot level with targets at 1.20500 & 1.20700 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.19900 & 1.19700.
Comment: Pair below its 20MA & 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 on the upside
Our pivot point is at 1.39120
Preferable Price Action: Buy positions above pivot with targets at 1.39650 & 1.39950 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.38600 & 1.38300.
Comment: Price above its 20MA 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 produced
USD/JPY Intraday: Trend on the downside
Our pivot point is at 108.190
Preferable Price Action: Sell position below with the target at 107.850 and 107.650 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.510 and 108.710.
Comment: price below 20MA & 50MA 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 support level
Our pivot point is at 0.77360
Preferable Price Action: Sell Positions below pivot with targets at 0.76900 & 0.76650 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77800 & 0.78050 as targets.
Comment: Pair below its 20MA & 55MA 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: Trend on the downside
Our pivot point is at 62.85
Preferable Price Action: Below pivots sell Oil with 61.80 & 61.30 as targets.
Alternative Price Action: Buy crude above pivot with targets at 63.80 and 64.30 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: Break resistance level
Our pivot point is at 1781.10
Preferable Price Action: Further upside to 1791.00 & 1796.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1771.00 and 1766.00.
Comment: MACD in positive territory and price 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
Dow Jones Intraday: Trend on the downside
Our pivot point is 33,990.00
Preferable Price Action: Take sell positions below pivot with targets at 33,750.00 & 33,650.00.
Alternative Price Action: Ab33,990.00 looks for further downside to 33,860.00 & 33,790.00.
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