Market Wrap: Stocks, Bonds, Commodities
U.S. stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
The Dow Jones Industrial Average fell 650.19 points (2.29%) to 27,685.38. The S&P 500 lost 64.42 points (1.86%) to 3,400.97 and the Nasdaq Composite dropped 189.35 points (1.64%) to 11,358.94.
Asian markets look set to continue a downward path on Tuesday after soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal took a toll on Wall Street and drove up the U.S. dollar.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 2.93% to 3,105.25, Germany’s DAX down 3.71% to 12,177.18 and France’s CAC lost 1.91% to 4,816.12 and U.K.’s FTSE 100 slipped 1.16% to 5,792.10.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.66% to 0.798.
Oil prices eked out small gains on Tuesday after recent sharp losses, but sentiment remained subdued as a surge in global coronavirus cases hit prospects for crude demand while supply is rising.
Spot Brent crude Oil rose 0.60% to $41.08 per barrel. US West Texas Intermediate crude advance 0.65% to $38.81 a barrel.
The yellow metal traded 0.10% higher to 1905.50 dollar per ounce.
Market Wrap: Forex
The U.S. dollar advanced on Monday, rising for a second straight session, bolstered by safe-haven bids amid surging coronavirus cases in Europe and the United States as well as a lack of progress on a U.S. stimulus package.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.07% to 92.983.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.11% today. This left the pairing trading around $1.18220.
The Japanese rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY down 0.05% to 104.780 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.06% to 0.71260 and NZD/USD up 0.10% to 0.66860.
EUR/USD Intraday: Break resistance levels
Our pivot point is at 1.18250
Preferable Price Action: Take Long positions above level with targets at 1.18500 & 1.18650 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.18010 & 1.17870.
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
GBP/USD Intraday: Support at 1.30180
Our pivot point is at 1.30180
Preferable Price Action: Long positions above pivot with targets at 1.30560 & 1.30800 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29810 & 1.29570.
Comment: Price above 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
USD/JPY Intraday: Resistance at 104.480
Our pivot point is at 104.890
Preferable Price Action: Short position below pivot with the target at 104.660 and 104.500 in extension.
Alternative Price Action: The upside breakout of pivot would call for 105.120 and 105.280.
Comment: price above 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
AUD/USD Intraday: Support at 0.71190
Our pivot point is at 0.71190
Preferable Price Action: Long positions above pivot with targets at 0.71470 & 0.71660 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70910 & 0.70730 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: Trend on upside
Our pivot point is at 38.65
Preferable Price Action: Buy crude above pivot with targets at 39.40 and 39.80 in extension.
Alternative Price Action: Below pivots sell Oil with 37.95 & 37.55 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Resistance at 1910.40
Our pivot point is at 1910.40
Preferable Price Action: Further downside to 1900.80 & 1894.40 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1919.80 and 1926.10.
Comment: MACD in positive territory and price 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: Bias on the upside
Our pivot point is at 27,660.00
Preferable Price Action: Take buy positions above pivot with targets at 27,900.00 & 28,050.00 in extension.
Alternative Price Action: Below 27,660.00 looks for further downside to 27,440.00 & 27,280.00.
Comment: Price below its 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 produced7