Market Wrap: Stocks, Bonds, Commodities
Wall Street surged on Wednesday as oil prices recovered and Congress looked on course to approve nearly $500 billion more in aid to help small businesses ride out the coronavirus crisis.
The Dow Jones Industrial Average was advanced 2.02% at 23,476.20 points, while the S&P 500 higher 2.30% to 2,780.30. The Nasdaq Composite rose 2.75% to 8,495.25.
Stocks in Asia traded higher following an overnight rebound in oil prices that recouped some recent losses. Chinese and New Zealand market are flat.
MSCI’s index of Asia-Pacific stocks outside Japan dropped 2.18% to 583.50 levels. Australian index flat to 5,217.25. Japan Nikkei rose 1.10% to 19,350.
The coronavirus pandemic pushed South Korea’s economy into its biggest contraction since 2008 in the first quarter to 1.4% contraction.
European stocks were mixed on Thursday, with the Stoxx Europe 50 Index gained 1.56% to 2,834.90, Germany’s DAX up 1.61% to 10,415.90 and France’s CAC rose 1.25% to 4,411.30 and U.K.’s FTSE 100 advanced 2.30% to 5,770.63.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lost 2.10% to 0.606.
Brent crude Oil soared 12% to $26.200 per barrel. while US West Texas Intermediate (WTI) crude rose 13.75% to $17.50 per barrel.
The Yellow metal was down in the early morning on Thursday as investors demand increase for a risky asset. Today, Yellow metal slipped 0.15% to $1712 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 0.10% to 100.430.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.10% today. This left the pairing trading around $1.08240.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY higher 0.10% to 107.770 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD down 0.20% to 0.63280 and NZD/USD fell 0.30% to 0.59630.
EUR/USD Intraday: In consolidation zone
Our pivot point is at 1.08000
Preferable Price Action: Take long positions above pivot level with targets at 1.08709 & 1.09163 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07349 & 1.06925.
Comment: pair above 20MA 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
GBP/USD Intraday: Trend Upside
Our pivot point is at 1.23250
Preferable Price Action: Long positions above pivot with targets at 1.24006 & 1.24453 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22518 & 1.22081.
Comment: The RSI indicator above 50 levels and pair above 50MA & 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: In consolidation zone
Our pivot point is at 107.870
Preferable Price Action: Short position below pivot with the target at 107.318 and 106.867 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.449 and 108.836.
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
AUD/USD Intraday: Bias on upside
Our pivot point is at 0.63120
Preferable Price Action: Long positions above pivot with targets at 0.63773 & 0.64196 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.62474 & 0.62076 as targets.
Comment: MACD in positive zone 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
CRUDEOIL Intraday: At 22 year low
Our pivot point is at 16.06
Preferable Price Action: Buy crude above pivot with targets at 19.02 and 20.79 in extension.
Alternative Price Action: Below pivots sell Oil with 13.14 & 11.44 as targets.
Comment: MACD in the positive zone and RSI above 50 level mark.
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 1705.00
Preferable Price Action: Further upside to 1730.34 & 1742.81 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1681.37 and 1668.16.
Comment: RSI above 50 level mark and price above 20&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: Trend Upside
Our pivot point is at 23330.00
Preferable Price Action: Take buy positions above pivot with targets at 23,925.45 & 24,334.75 in extension.
Alternative Price Action: Below 23,330.00 looks for further downside to 22,761.99 & 22,383.01.
Comment: Index above 20MA & 55MA and also MACD in positive side.
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