Market Wrap: Stocks, Bonds, Commodities
American major stock index closed higher on Wednesday after the Federal Reserve said it will use its “full range of tools” to support the struggling economy but put fresh worry that the economic outlook “will depend significantly on the course of the virus.”
The Dow Jones Industrial Average climbed 160.30 points (0.60%) to 26,539.60, the S&P 500 higher 40.25 points (1.25%) to 3,258.50 and the Nasdaq Composite gained 140.85 points (1.36%) to 10,542.89.
Asian major equity indices gained on Thursday morning as upbeat Wall Street session on Thursday after the Federal Reserve (Fed) kept interest rates at ZERO levels, while the U.S. dollar at two-year low levels.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.50% to 705.70 levels. Australian index rose 0.74% to 6,051.10 Japanese market lost 0.28% to 22,333.50.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index slipped 0.10% to 3,300.16, Germany’s DAX down 0.12% to 12,822.26 and France’s CAC higher 0.61% to 4,958.74 and U.K.’s FTSE 100 flat to 6,131.46.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 1.48% to 0.572.
Crude Oil prices flat on Wednesday after a steep drop in U.S. crude oil stockpile, but another record day for coronavirus cases and a slowdown in economic recovery worldwide kept prices down.
Spot Brent crude oil lost 0.14% to $44.03 per barrel. US West Texas Intermediate crude futures were fell 0.27% to $41.17 a barrel.
The yellow metal loses stream on Thursday, traded 0.10% lower to $1961.30 per ounce.
Market Wrap: Forex
The dollar pulled back from two-year low on Thursday as the Federal Reserve (FED) repeated a fiscal stimulus to limit damage from the pandemic as surging new coronavirus cases damage the economy heavily.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.10% to 93.498.
The Euro US Dollar (EUR/USD) widely traded pair lower by 0.28% today. This left the pairing trading around $1.17570.
The Japanese yen fell against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY rose 0.30% to 105.220 level.
Other commodity-related currency broadly lower against U.S dollar, AUD/USD lost 0.47% to 0.71510 and NZD/USD down 0.50% to 0.66340.
EUR/USD Intraday: Bias on Upside
Our pivot point is at 1.17250
Preferable Price Action: Take Long positions above level with targets at 1.17780 & 1.18033 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16727 & 1.16458.
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: May temporary trend change
Our pivot point is at 1.29800
Preferable Price Action: Short positions below pivot with targets at 1.29222 & 1.28941 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30359 & 1.30601.
Comment: Price below 20MA & 55MA 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
USD/JPY Intraday: Support at 104.900
Our pivot point is at 104.900
Preferable Price Action: Long position above pivot with the target at 105.430 and 105.656 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.364 and 104.139.
Comment: Short term Trend on the upside.
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 support level
Our pivot point is at 0.71680
Preferable Price Action: Short positions below pivot with targets at 0.71177 & 0.70926 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72166 & 0.72403 as targets.
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
CRUDEOIL Intraday: Trend on upside
Our pivot point is at 40.95
Preferable Price Action: Buy crude above pivot with targets at 41.45 and 41.75 in extension.
Alternative Price Action: Below pivots sell Oil with 40.43 & 40.43 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: Bias on downside
Our pivot point is at 1964.60
Preferable Price Action: Further downside to 1944.66 & 1936.10 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1983.41 and 1991.81.
Comment: RSI below 50 level mark and price 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: Support at 26380.00
Our pivot point is at 26380.00
Preferable Price Action: Take buy positions above pivot with targets at 26553.88 & 26650.04 in extension.
Alternative Price Action: Below 26380.00 looks for further downside to 26230.39 & 26141.25.
Comment: Price 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 produced7