Market Wrap: Stocks, Bonds, Commodities
Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table hours before the first U.S. presidential debate.
The Dow Jones Industrial Average fell 131.4 points (0.48%) to 27,452.66, the S&P 500 lost 16.13 points (0.48%) to 3,335.47 and the Nasdaq Composite dropped 32.28 point (0.29%) to 11,085.25.
Asian shares crept higher on Wednesday after data showed China’s economic recovery gathering steam, but a chaotic first U.S. presidential debate between President Donald Trump and Democrat Joe Biden weighed on the mood.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.30% to 706.60 levels. Australian index plunged 2.29% to 5,815.90. Japanese Nikkei slipped 1.50% to 23,185.12.
European stocks were lower on Tuesday, with the Stoxx Europe 50 Index down 0.28% to 3,214.24, Germany’s DAX fell 0.35% to 12,825.82 and France’s CAC lost 0.51% to 4,832.10 and U.K.’s FTSE 100 up 1.46% to 5,927.93.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.10% to 0.645.
Oil prices fell for a second day on Wednesday, extending big losses from the previous session amid rising concerns about fuel demand as the coronavirus pandemic worsens.
Spot Brent crude Oil slipped 0.72% to $41.26 per barrel. US West Texas Intermediate crude down 0.59% to $39.05 a barrel.
The yellow metal traded 0.60% lower to 1888.10 dollar per ounce.
Market Wrap: Forex
The dollar was up on Wednesday morning in Asia, with investors digesting economic data from China as well as the presidential debate between U.S. President Donald Trump and Democrat Joe Biden.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.07% to 93.980.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.17410. GBP/USD slipped 0.15% to 1.28430.
The Japanese yen down against the U.S. dollar on Wednesday as stock pushes lower. Today US/JPY fell 0.05% to 105.580 level.
Other commodity related currency mixed against U.S dollar, AUD/USD lost 0.13% to 0.71170 and NZD/USD flat to 0.65860.
EUR/USD Intraday: Trend upside
Our pivot point is at 1.17110
Preferable Price Action: Take Long positions above level with targets at 1.17500 & 1.17720 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16720 & 1.16500.
Comment: Pair 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
GBP/USD Intraday: Bias on the upside
Our pivot point is at 1.28140
Preferable Price Action: Long positions above pivot with targets at 1.28670 & 1.28970 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.27610 & 1.27300.
Comment: Price below 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
USD/JPY Intraday: Support at 105.410
Our pivot point is at 105.410
Preferable Price Action: Long position above pivot with the target at 105.770 and 105.970 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.050 and 104.840.
Comment: price below 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
AUD/USD Intraday: Trend upside
Our pivot point is at 0.71000
Preferable Price Action: Long positions above pivot with targets at 0.71440 & 0.71650 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.70560 & 0.70330 as targets.
Comment: Pair above its 55MA and RSI near 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 the downside
Our pivot point is at 39.45
Preferable Price Action: Buy crude below pivot with targets at 38.80 and 38.40 in extension.
Alternative Price Action: Above pivots buy Oil with 40.10 & 40.50 as targets.
Comment: Crude below Its 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
XAU/USD Intraday: Temporary pause in trend
Our pivot point is at 1895.00
Preferable Price Action: Further downside to 1909.90 & 1918.00 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1880.00 and 1872.00.
Comment: MACD in negative territory and price below it’s 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: Trend on downside
Our pivot point is at 27470.00
Preferable Price Action: Take sell positions below pivot with targets at 27140.00 & 26940.00 in extension.
Alternative Price Action: Below 27470.00 looks for further upside to 27790.00 & 27980.00.
Comment: Price 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 produced7