Market Wrap: Stocks, Bonds, Commodities
US stocks surged on Wednesday as hopes for an effective COVID-19 treatment prompted a broad rally and helped investors shrug off bleak GDP data and words of warning from US Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average advanced 532.31 points (2.21%) to 24,633.86, the S&P 500 gained 2.63%, to 2,939.40 and the Nasdaq Composite soared 306.98 points (3.57%) to 8,914.50.
The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record.
U.S. Federal Reserve wrapped up its two-day monetary policy meeting, leaving key interest rates near zero and vowing to use a “full range” of its tools to aid the economy in the face of a pandemic that poses “considerable” medium-term risks.
Asian equity markets were poised to gain on Thursday, tracking Wall Street’s rally after positive trial results of an experimental COVID-19 treatment, a US Federal Reserve pledged to shore up the economy and a jump in oil prices.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.20% to 611.70 levels. Australian index rose 2.69% to 5,538.20. Japan Nikkei higher 2.32% to 20,229.50.
European stocks were higher on Tuesday, with the Stoxx Europe 50 Index advanced 2.18% to 2,996.08, Germany’s DAX rose 2.89% to 11,107.74 and France’s CAC up 2.22% to 4,671.11 and U.K.’s FTSE 100 higher 2.63% to 6,115.25.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield lower 2.56% to 0.611.
Brent crude oil rose 8.34% to $26.600 per barrel. while US West Texas Intermediate (WTI) crude soared 15.14% to $19.28 per barrel.
Today, The Yellow metal price rose 1.00% to $1714 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 0.10% to 99.560.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.10% today. This left the pairing trading around $1.08660.
The Japanese yen rose against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY lower 0.21% to 106.470 level.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.20% to 0.65670 and NZD/USD higher 0.30% to 0.61490.
EUR/USD Intraday: Trend Upside
Our pivot point is at 1.08460
Preferable Price Action: Take long positions above pivot level with targets at 1.08981 & 1.09332 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.07940 & 1.07593.
Comment: pair above 20MA & 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
GBP/USD Intraday: Support at 1.24550
Our pivot point is at 1.24550
Preferable Price Action: Long positions above pivot with targets at 1.25037 & 1.25391 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24067 & 1.23731.
Comment: The RSI indicator above 50 levels and pair above 50MA & 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: Trend downside
Our pivot point is at 106.700
Preferable Price Action: Short position below pivot with the target at 106.157 and 105.854 in extension.
Alternative Price Action: The upside breakout of pivot would call for 107.223 and 107.512.
Comment: Pair below 20MA & 55MA and RSI at 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: Bias on the upside
Our pivot point is at 0.65350
Preferable Price Action: Long positions above pivot with targets at 0.65920 & 0.66271 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.64792 & 0.64424 as targets.
Comment: MACD in the positive zone 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: Trend Upside
Our pivot point is at 18.10
Preferable Price Action: Buy crude above pivot with targets at 19.63 and 20.70 in extension.
Alternative Price Action: Below pivots sell Oil with 16.54 & 15.50 as targets.
Comment: MACD in the positive zone and RSI above 50 level mark.
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 positive bias
Our pivot point is at 1709.00
Preferable Price Action: Further upside to 1721.51 & 1725.85 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1698.32 and 1694.10.
Comment: RSI above 50 level mark and price above 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: Support at 24,600
Our pivot point is at 24600.00
Preferable Price Action: Take buy positions above pivot with targets at 25052.17 & 25330.40 in extension.
Alternative Price Action: Below 24600.00 looks for further downside to 24126.85 & 23828.05.
Comment: Index above 20MA & 55MA and also MACD in positive side.
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