Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indices declined on Thursday for the sixth straight day, with the S&P 500 confirming its steepest correction in history as the rapid global spread of coronavirus rose worries about global economic growth.
The Dow Jones Industrial Average down 1,190 points (4.40%) to 25,766, the S&P 500 fell 137.63 points (4.42%) to 2,978.76 and the Nasdaq Composite lost 414 points (4.60%) to 8,566.
Asian stock indices slipped on Friday, with most major indices declined around 3% amid worried about the spread of the coronavirus globally.
MSCI’s broadest index of Asia-Pacific shares outside Japan down 2.4% to 637 level. Japanese market led losses among major markets regionally as the Nikkei declined 4.50% to 20,950.
European stocks were down on Monday, with the Stoxx Europe 50 Index slipped 3.40% to 3,455, Germany’s DAX dropped 3.20% to 12,367 and France’s CAC lost 3.32% to 5,495 and U.K.’s FTSE 100 declined 3.49% to 6,796.
Benchmark 10-year U.S. Treasury yields declined to a record low level for the second consecutive day on Friday, today lower 4.60% to 1.239.
Crude Oil prices dropped for a fifth day to their lowest area in more than a year, as new flash coronavirus cases outside China rose investor fears that the rapidly spreading outbreak could slow the world economy.
Brent crude down 2.75% at $50.25 per barrel, while US West Texas Intermediate (WTI) crude slipped 2.50% to $44.75 per barrel.
The yellow metal seems to have lost its mojo in the last few days, despite the risk aversion. Today trading 0.65% lower at $1630 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 0.17% to 98.300.
Prices of the Japanese yen advanced on Friday as traders rushed to haven assets following an increase in new coronavirus cases outside of China.
EUR/USD may trade better bid on dovish Fed expectations. Euro gain 0.10% to 1.10065.
Other Commodity-linked currencies were broadly lower against the greenback. AUD/USD dropped 0.70% to 0.65200 and NZD/USD lost 1.0% to 0.66220.
EUR/USD Intraday: Trend upside resume
Our pivot point is at 1.09855
Preferable Price Action: Take long positions above pivot level with targets at 1.10225 & 1.10487 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.09475 & 1.09142
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 1.29051
Preferable Price Action: Long positions above pivot with targets at 1.29293 & 1.29633 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28686 and 1.28492.
Comment: The RSI indicator at 50 level mark and pair below 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
JPY/USD Intraday: Under Pressure
Our pivot point is at 109.241
Preferable Price Action: Short position below 109.241 with the target at 108.700 and 108.374 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.727 and 109.122.
Comment: Pair below its 20MA and 55MA and RSI at the oversold 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
AUD/USD Intraday: Under Pressure
Our pivot point is at 0.65434
Preferable Price Action: Short positions below pivot with targets at 0.65056 & 0.64093 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.65668 & 0.65800 as targets.
Comment: pair below its 55MA & 20MA and RSI at oversold 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: At one year low
Our pivot point is at 46.93
Preferable Price Action: sell Below pivot with targets at 44.77 and 43.51 in extension.
Alternative Price Action: Above pivots buy Oil with 48.53 & 49.64 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 Support at 1626.07
Our pivot point is at 1626.07
Preferable Price Action: Further upside to 1640.98 & 1649.49 level
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1613.54 and 1606.97
Comment: MACD in negative territory and pair below its 20MA & 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
Dow jones Intraday: Down Trend Continues
Our pivot point is at 25,790
Preferable Price Action: Take short positions below pivot with targets at 26,855 & 26,496 in extension.
Alternative Price Action: Above 25,790 looks for further upside to 26,444 & 26,868.
Comment: Pair is trading below its 55MA and MACD in negative territory and RSI in the oversold 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