Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indices declined on Monday, S&P 500 and the Dow Jones suffered their highest one-day loss in last two years after a surge in coronavirus cases in other countries rose worries about the global economic impact of a virus.
The Dow Jones Industrial Average down 1,031.61 points (3.56%) to 27,960.8, the S&P 500 fell 111.86 points (3.35%) to 3,225.89 and the Nasdaq Composite lost 355.31 points (3.71%) to 9,221.28.
Asian stock indices extended losses on Tuesday, with Japanese Nikkei dropped more than 3% on worries about a potential coronavirus pandemic outbreak.
MSCI’s broadest index of Asia-Pacific shares outside Japan flat to 661 level, having already fallen 2.5% on Monday. Australian market lost 1.8%, but South Korea’s market was trying to stabilize.
European stocks were down on Monday, with the Stoxx Europe 50 Index slipped 4.0% to 3,648, Germany’s DAX dropped 4.01% to 13,035 and France’s CAC lost 3.94% to 5,791.87 and U.K.’s FTSE 100 declined 3.34% to 7,156.83.
The benchmark 10-year Treasury yield fell to its lowest level since July 2016. U.S. government bond prices jumped as demand for safe-haven assets grows. Today, the benchmark U.S. 10-year Treasury yields up 1.59% to 1.399.
Gold rose as much as 2.8% on Monday to its highest level in last seven years, as investors demand for safe asset because of worried about global economic growth in the face of constant rising coronavirus cases outside China
Today Oil prices recovered in Asia after posting their worst one-day drop since the coronavirus contagion began.
Crude Oil prices ended almost 4% declined in the previous day and recorded its biggest loss in almost seven weeks as investors concern about weakening Chinese oil demand.
Market Wrap: Forex
The U.S. dollar index gave up early-day gains on Monday, pressured by growing traders expectations the Fed would give a rate cut sooner to reduce the impact from the coronavirus outbreak.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.04% to 99.244.
The euro dropped back towards $1.08000 on Monday and the Australian dollar down to 11-year low as coronavirus cases increased outside China drove fears of a pandemic and sent investors to hurray for U.S. dollar.
The safe-haven Japanese yen and Swiss franc gained, USD/JPY flat to 110.850 level.
EUR/USD Intraday: Intraday support at 1.8420
Our pivot point is at 1.08420
Preferable Price Action: Take long positions above pivot level with targets at 1.08670 & 1.08794 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08226 & 1.08103
Comment: MACD in positive territory and pair above its 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
GBP/USD Intraday:
Our pivot point is at 1.29240
Preferable Price Action: Long positions above pivot with targets at 1.29438 & 1.29556 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29029 and 1.28888
Comment: The RSI indicator above the 50-level mark and pair above its 55MA & below 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
JPY/USD Intraday: Demand rise for Yen as a safe haven
Our pivot point is at 111.020
Preferable Price Action: Short position below 111.020 with the target at 110.759 and 110.615 in extension
Alternative Price Action: The upside breakout of pivot would call for 111.257 and 111.424
Comment: Pair below its 20MA and 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: Under Pressure
Our pivot point is at 0.66230
Preferable Price Action: Short positions below pivot with targets at 0.66066 & 0.65954 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.66364 & 0.66460 as targets.
Comment: pair above its 55MA & 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
CRUDEOIL Intraday: May price further rise upward
Our pivot point is at 51.62
Preferable Price Action: Buy above pivot with targets at 52.19 and 52.61 in extension.
Alternative Price Action: Below pivots sell Oil with 51.09 & 50.72 as targets.
Comment: Pair 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 produced
XAU/USD Intraday: Retrace from $1689
Our pivot point is at 1649.40
Preferable Price Action: Further downside to 1631.70 & 1624.57 level
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1661.16 and 1668.40
Comment: MACD in negative territory and pair below 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: Under Pressure
Our pivot point is at 28,262
Preferable Price Action: Take short positions below pivot with targets at 28,033 & 27,880 in extension.
Alternative Price Action: Above 28,262 looks for further upside to 28,491 & 28,613
Comment: Pair is trading below its 20MA and MACD in negative territory, RSI at 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