Market Wrap: Stocks, Bonds, Commodities
American major stock indices closed lower on Friday, the market gives broad sell-off due to weak corporate earnings, a spike in coronavirus cases worldwide and geopolitical uncertainties over US-China.
The Dow Jones Industrial Average plunged 182.50 points (0.69%) to 26,469.90, the S&P 500 declined 0.63%, to 3,215.70 and the Nasdaq Composite lost 98.24 points (0.95%) to 10,363.20.
Asian major indices declined in Monday as US close consulate in China and America spurred tension about worsening diplomatic ties between the world’s two largest economies.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.80% to 689.80 levels. Australian index rose 0.34% to 6,044.50 Japanese market lost 0.16% to 22,715.
European stocks were lower on Friday, with the Stoxx Europe 50 Index down 1.33% to 3,326.94, Germany’s DAX fell 1.59% to 12,895.25 and France’s CAC slipped 1.14% to 4,975.45 and U.K.’s FTSE 100 lost 1.07% to 6,146.10.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 2.53% to 0.574.
Crude Oil prices down on Monday as rising coronavirus cases across world and tensions between the United States and China pushed traders toward safe-haven assets gold.
Spot Brent crude oil slipped 0.48% to $43.58 per barrel. US West Texas Intermediate crude futures were fell 0.41% to $41.13 a barrel.
The yellow metal gained on Friday, traded 1.75% higher to $1934.50 per ounce.
Market Wrap: Forex
The dollar began the week under pressure from all corners as intensifying Sino-U.S. tensions added to worries that the coronavirus resurgence in United States could undermine the recovery in the world’s biggest economy.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.55% to 93.890.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.50% today. This left the pairing trading around $1.17090.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY fell 0.62% to 105.470 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD up 0.51% to 0.71400 and NZD/USD gained 0.50% to 0.66740.
EUR/USD Intraday: Strong Trend Upside
Our pivot point is at 1.16910
Preferable Price Action: Take Long positions above level with targets at 1.17360 & 1.17584 in extension.
Alternative Price Action: Below pivot level looks for further downside at 1.16453 & 1.16207.
Comment: Pair above 55MA & 20MA and RSI at overbought 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 1.28120
Preferable Price Action: Long positions above pivot with targets at 1.28553 & 1.28774 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27664 & 1.27426.
Comment: Price above 55MA & 20MA 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: Trend Downside
Our pivot point is at 105.750
Preferable Price Action: Short position below pivot with the target at 105.190 and 104.945 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.295 and 106.562.
Comment: Pair below 55MA & 20MA 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: Break resistance level
Our pivot point is at 0.71160
Preferable Price Action: Long positions above pivot with targets at 0.71584 & 0.71804 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70736 & 0.70492 as targets.
Comment: Pair above 20MA & 55MA 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: Resistance at 41.50
Our pivot point is at 41.50
Preferable Price Action: Sell crude below pivot level with targets at 40.87 and 40.57 in extension.
Alternative Price Action: Above pivots buy Oil with 42.11 & 42.41 as targets.
Comment: Crude 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
XAU/USD Intraday: at multi-year high
Our pivot point is at 1928.75
Preferable Price Action: Further upside to 1941.44 & 1951.33 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1915.70 and 1905.43.
Comment: MACD in positive zone and price 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
Dow Jones Intraday: Support at 26,390
Our pivot point is at 26390.00
Preferable Price Action: Take buy positions above pivot with targets at 26725.93 & 26919.78 in extension.
Alternative Price Action: Below 26390.00 looks for further downside to 26044.99 & 25859.55.
Comment: RSI at 50 levels 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 produced7