Market Wrap: Stocks, Bonds, Commodities
American major stock indices two-day advance lost momentum on Thursday, and trader short riskier stock again, as stimulus negotiations dragged on in Washington and investors worried over a likely spike in U.S. jobless claims, which release later today.
The Dow Jones Industrial Average jumped 2.41% to 21,201 points, while the S&P 500 rose 1.15% to 2,476.05. The Nasdaq Composite slipped 0.45% to 7,384.25, giving up its earlier gains.
Asian major stock markets mixed on Thursday following two days of good rallies, as traders pause to see the details of a $2 trillion stimulus package in the America to combat the economic fallout from the coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53% to 553 level. Australian stock index rose 2.3% in early trade – its third positive start in as many sessions. Japan’s Nikkei fell 4.05%.
European stocks were advanced on Tuesday, with the Stoxx Europe 50 Index surged 9.98% to 2733, Germany’s DAX rose 11.49% to 9,745.25 and France’s CAC advanced 8.39% to 4,242 and U.K.’s FTSE 100 jumped 9.35% to 5,460.75.
Benchmark 10-year U.S. Treasury down as fear rose about the crash in the corporate bond market, today rose 1.53% to 0.831.
Oil prices were mixed on Thursday following three days of gains, with the prospect of rapidly dwindling demand due to coronavirus travel bans and lockdowns offsetting hopes a U.S. $2 trillion emergency stimulus will shore up economic activity.
Brent crude oil down 1.50% at $29.70 per barrel. while US West Texas Intermediate (WTI) crude fell 1.20% to $25.00 per barrel.
Yellow metal rally take a pause after rising from $1450 to $1638 per ounce. Today Gold down 0.65% to $1602 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 0.20% to 100.800.
The Euro US Dollar (EUR/USD) widely traded pair advanced by 0.30% today. This left the pairing trading around $1.09115.
The Japanese yen advanced against the U.S. dollar on Thursday as demand for safe heaven rose. Today USD/JPY down 0.60% to 110.600 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD down 0.58% to 0.59250 and NZD/USD fell 0.60% to 0.58200.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.08670
Preferable Price Action: Take long positions above pivot level with targets at 1.09462 & 1.09902 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07893 & 1.07442.
Comment: pair above 20MA & 55MA also 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
GBP/USD Intraday: Bias remains bullish
Our pivot point is at 1.17350
Preferable Price Action: long positions above pivot with targets at 1.19030 & 1.19593 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.15729 and 1.15150.
Comment: The RSI indicator at 50 level mark and pair below its 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
JPY/USD Intraday: In consolidation zone
Our pivot point is at 111.000
Preferable Price Action: Short position below pivot with the target at 110.068 and 109.646 in extension.
Alternative Price Action: The upside breakout of pivot would call for 111.919 and 112.329.
Comment: Pair below 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
AUD/USD Intraday: Resistance at 0.59600
Our pivot point is at 0.59600
Preferable Price Action: Short positions below pivot with targets at 0.58707 & 0.58182 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.60497 & 0.60988 as targets.
Comment: Pair below its 55MA and MACD in the negative zone.
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: In a consolidation zone
Our pivot point is at 24.25
Preferable Price Action: Sell below pivot with targets at 22.14 and 21.16 in extension.
Alternative Price Action: Above pivots buy Oil with 26.39 & 27.38 as targets.
Comment: MACD in the positive zone and pair below 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
XAU/USD Intraday: Trend change to the upside
Our pivot point is at 1580.00
Preferable Price Action: Further upside to 1634.00 & 1660.75 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1550.00 and 1525.67.
Comment: Trading in a narrow range from last 2 day
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: Technical Bounce back may end
Our pivot point is at 21560.00
Preferable Price Action: Take Short positions below pivot with targets at 20363.93 & 19818.02 in extension.
Alternative Price Action: Above 22619.08 looks for further upside to 23118.12 & 1774.
Comment: Pair is trading 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