Market Wrap: Stocks, Bonds, Commodities
Wall Street retreated on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties.
The Dow Jones Industrial Average fell 182.44 points (0.68%) to 26,469.89, the S&P 500 lost 20.03 points (0.62%) to 3,215.63 and the Nasdaq Composite dropped 98.24 points (0.94%) to 10,363.18.
Asian shares came under pressure in early Monday trade as tit-for-tat consulate closures in China and the United States fanned worries about worsening diplomatic ties between the world’s two largest economies.
MSCI’s index of Asia-Pacific stocks outside Japan gained 1.12% to 699.80 levels. Australian index rose 0.34% to 6,044.50 Japanese market lost 0.16% to 22,715.
European stocks were higher on Friday, with the Stoxx Europe 50 Index rose 0.24% to 3,311.82, Germany’s DAX gained 0.47% to 12,893.25 and France’s CAC fell 0.10% to 4,937.10 and U.K.’s FTSE 100 advance 0.61% to 6,142.85.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield rose 1.54% to 0.618.
Crude Oil prices gained on Tuesday as rising hope of COVID-19 vaccine and tensions ease between world two largest economy America and China.
Spot Brent crude oil rose 0.50% to $44.12 per barrel. US West Texas Intermediate crude futures were gain 0.10% to $41.65 a barrel.
The yellow metal gained on Monday, traded at an all-time high level and touched $1980 per ounce.
Market Wrap: Forex
The dollar bounced off a two-year low on Tuesday as selling pressure faded ahead of a Federal Reserve meeting and as political wrangling over the next U.S. fiscal rescue package moved closer to a conclusion.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.16% to 93.767.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.20% today. This left the pairing trading around $1.17300.
The Japanese yen rose against the U.S. dollar on Friday as stock pushes lower. Today US/JPY rose 0.14% to 105.500 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD fell 0.20% to 0.71340 and NZD/USD lost 0.50% to 0.66480.
EUR/USD Intraday: Trend may Pause
Our pivot point is at 1.17610
Preferable Price Action: Take Short positions below level with targets at 1.17002 & 1.16703 in extension.
Alternative Price Action: Above pivot level looks for further upside at 1.18157 & 1.18438.
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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.28400
Preferable Price Action: Long positions above pivot with targets at 1.28950 & 1.29203 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27826 & 1.27561.
Comment: Price above 55MA 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: Support at 150.300
Our pivot point is at 105.300
Preferable Price Action: Long position above pivot with the target at 105.857 and 106.106 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.795 and 104.524.
Comment: Pair 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
AUD/USD Intraday: Resistance at 0.71600
Our pivot point is at 0.71600
Preferable Price Action: Short positions below pivot with targets at 0.71163 & 0.70961 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72026 & 0.72225 as targets.
Comment: Pair below 20MA & 55MA 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: Bias on upside
Our pivot point is at 41.25
Preferable Price Action: Buy crude above pivot level with targets at 42.00 and 42.40 in extension.
Alternative Price Action: Below pivots sell Oil with 40.52 & 40.13 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Touched at 1980 level
Our pivot point is at 1953.50
Preferable Price Action: Further downside to 1929.20 & 1918.33 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1975.26 and 1984.83.
Comment: MACD in the negative zone and price 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
Dow Jones Intraday: Support at 26500.00
Our pivot point is at 26500.00
Preferable Price Action: Take buy positions above pivot with targets at 26700.31 & 26809.09 in extension.
Alternative Price Action: Below 26500.00 looks for further downside to 26318.82 & 26207.85.
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