Market Wrap: Stocks, Bonds, Commodities
US major three indices closed in positive on Tuesday as better than expected European economic data and the prospect of more stimulus gives hopes of a fast recovery, while a jump in technology stock made the Nasdaq to another record high.
The Dow Jones Industrial Average advanced 131.20 points (0.49%) to 26,156, the S&P 500 higher 0.44%, to 3,131.30 and the Nasdaq Composite climbed 75.20 points (0.75%) to 10,131.40.
Asian major stock indices were under pressure on Wednesday, as a spike in new coronavirus cases weighed on sentiment, although American president assurances that the China trade deal was intact and upbeat economic data provided some optimism.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.52% to 661.20 levels. Australian index rose 0.22% to 5,967.60. Japan’s Nikkei flat to 22,545.50.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 1.76% to 3,298.83, Germany’s DAX gained 2.13% to 12,523.76 and France’s CAC climbed 1.39% to 5,017.68 and U.K.’s FTSE 100 advanced 1.21% to 6,320.12.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 1.35% to 0.719.
Crude Oil lower on Wednesday, expand losses from the previous day after American crude stockpiles increase higher than expected, this adds worries about oversupply.
Spot Brent crude Oil slipped 0.20% to $42.54 per barrel. US West Texas Intermediate crude futures were fell 0.52% to $40.16 a barrel.
The yellow metal made a new high after eight years. Today, Bullion prices higher 0.26% to $1770.20 per ounce.
Market Wrap: Forex
The US dollar index was under pressure on Wednesday after better than expected data in Europe fired the euro and other riskier currencies.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.10% to 97.328.
The euro is headed for its best month against the dollar since October and inched higher to $1.13190. The Australian dollar led small gains in risk-sensitive currencies, firming about 0.20% to $0.6942.
New Zealand dollar dipped to $0.64630 after the country’s central bank said the balance of economic risks remains to the downside and it is prepared to use additional monetary tools as necessary.
The Japanese yen fell against the U.S. dollar on Wednesday as demand for risky currency rose. Today US/JPY rose 0.15% to 106.650.
EUR/USD Intraday: Support at 1.13030
Our pivot point is at 1.13030
Preferable Price Action: Take Long positions above pivot level with targets at 1.13431 & 1.13678 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.12622 & 1.12365.
Comment: Pair above 20MA & 55MAand 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.24860
Preferable Price Action: Long positions above pivot with targets at 1.25329 & 1.25584 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24362 & 1.24100.
Comment: Price above 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
USD/JPY Intraday: Resistance at 106.760
Our pivot point is at 106.760
Preferable Price Action: Short position below pivot with the target at 106.381 and 106.178 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.129 and 107.322.
Comment: Pair below 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 produced
AUD/USD Intraday: Break Resistance level
Our pivot point is at 0.69240
Preferable Price Action: Long positions above pivot with targets at 0.69660 & 0.69910 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68821 & 0.68567 as targets.
Comment: Pair above 20MA & 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 produced
CRUDEOIL Intraday: Trend upside
Our pivot point is at 39.80
Preferable Price Action: Buy crude above pivot with targets at 41.00 and 41.60 in extension.
Alternative Price Action: Below pivots sell Oil with 38.66 & 38.04 as targets.
Comment: Bias on the upside for Oil as strong trend upside.
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 1761.00
Our pivot point is at 1761.00
Preferable Price Action: Further upside to 1776.53 & 1782.85 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1744.55 and 1737.67.
Comment: RSI above 50 level mark and 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: Strong trend on upside
Our pivot point is at 25980.00
Preferable Price Action: Take buy positions above pivot with targets at 26355.73 & 26554.04 in extension.
Alternative Price Action: Below 25980.00 looks for further downside to 25590.84 & 25402.02.
Comment: Price above 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 produced7