Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indices declined on Wednesday, S&P 500 index fell for a fifth straight day on Wednesday, the session was volatile as trader reacted to headlines about coronavirus and its economic fallout.
The Dow Jones Industrial declined 123 points (0.45%) to 26,957, the S&P 500 fell 11.82 points (0.38%) to 3,116.39 and the Nasdaq Composite added 15.16 points (0.17%) to end at 8,980.78.
Asian stock indices slipped on Thursday, struggling to find support as the fast-global spread of the coronavirus left traders on edge and seeking safety in gold and bonds.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.22% to 653.50. Australia’s S&P/ASX 200 was 0.75% lower, for a loss of more than 6% this week so far. Japan’s Nikkei declined by 2.0%.
European stocks were down on Monday, with the Stoxx Europe 50 Index slipped 1.90% to 3,510, Germany’s DAX dropped 1.89% to 12,545 and France’s CAC lost 2.0% to 5,576 and U.K.’s FTSE 100 declined 2.10% to 6,890.
Benchmark 10-year U.S. Treasury yields declined to a record low level for the second consecutive day on Thursday, today lower 0.35% to 1.305.
Gold is trading near a seven-year high and has outperformed other traditional haven assets, such as the yen and Swiss Franch. Today trading 0.40% higher at $1650 per ounce.
Oil prices were down on Thursday in Asia as virus fears outweighed inventory data that showed stockpiles US crude oil rose less than traders expected last week.
Brent crude down 1.35% at $52 per barrel, while US West Texas Intermediate (WTI) crude slipped 1.30% to $48.10 per barrel.
Market Wrap: Forex
The U.S. dollar index remained flat on track to stop a four-day losing streak on Wednesday and sharp gains against the pound on fears of EU-U.K. trade talks ahead.
GBP/USD recovers from three-day low amid broad US dollar weakness and trading 0.30% higher to 1.29450. while Euro gain 0.60% to 1.09430.
The yen has pulled back from a 10-month high of 112.23 reached on Feb. 20 but still above support levels, suggesting further declines could be limited.
Other Commodity-linked currencies were broadly higher against the greenback. AUD/USD advanced 0.46% to 0.65730 and NZD/USD gain 0.45% to 0.66220.
EUR/USD Intraday: Trend upside resume
Our pivot point is at 1.09155
Preferable Price Action: Take long positions above pivot level with targets at 1.09565 & 1.08749 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08823 & 1.08573
Comment: MACD in positive territory and pair above 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
GBP/USD Intraday: Bias Remain Bullish
Our pivot point is at 1.29100
Preferable Price Action: Long positions above pivot with targets at 1.29567 & 1.29794 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28737 and 1.28539.
Comment: The RSI indicator above 50 level mark and pair above 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: Near Support Area
Our pivot point is at 109.870
Preferable Price Action: Long position above 109.870 with the target at 110.379 and 110.631 in extension
Alternative Price Action: The downside breakout of pivot would call for 109.467 and 109.253
Comment: Pair below its 20MA and 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
AUD/USD Intraday: Under Pressure
Our pivot point is at 0.66230
Preferable Price Action: Short positions below pivot with targets at 0.65275 & 0.65132 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.65826 & 0.65975 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
CRUDEOIL Intraday: Break Previous support level
Our pivot point is at 48.95
Preferable Price Action: sell Below pivot with targets at 47.19 and 46.87 in extension.
Alternative Price Action: Above pivots buy Oil with 50.26 & 51.19 as targets.
Comment: Pair Below its 55MA & 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
XAU/USD Intraday: Intraday Resistance at 1655.00
Our pivot point is at 1655
Preferable Price Action: Further downside to 1637.80 & 1630.05 level
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1668.43 and 1676.96
Comment: RSI at 50 levels 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 26,950
Preferable Price Action: Take short positions below pivot with targets at 26,447.75 & 26,173.22 in extension.
Alternative Price Action: Above 28,262 looks for further upside to 27,482.94 & 27,826.09.
Comment: Pair is trading below its 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