Market Wrap: Stocks, Bonds, Commodities
The evaporation of a rally on Wall Street in the closing minutes of Tuesday’s session shows that many investors fear the U.S. stock market is in danger of a renewed tumble due to uncertainty surrounding the coronavirus pandemic.
The Dow Jones Industrial Average down 26 points (0.12%) to 22,679.99, the S&P 500 flat to 2,659.41 and the Nasdaq Composite slipped 26.5 points to 7,887.26.913.24.
Asian stock futures were under pressure on Wednesday after a late, sharp sell-off on Wall Street and as oil prices slumped under pressure from swelling global supplies.
MSCI’s index of Asia-Pacific stocks outside Japan declined 0.67% to 575 levels. Australian index was slipped 0.86%. Japan Nikkei rose 2.13% to 19,353.24.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index fell 1.40% to 2817.65, Germany’s DAX down 0.81% to 10,274 and France’s CAC slipped 1.54% to 4,359.60 and U.K.’s FTSE 100 lost 1.21% to 5,639.15.
Benchmark 10-year U.S. Treasury advanced as demand for safe asset grow again, today 10-year bond yield down 2.14% to 0.718.
Oil climbed on Wednesday, reversing most of the prior session’s losses, as investors pinned hopes on a Thursday meeting where OPEC members and allied producers will discuss output cuts to shore up prices that have tumbled amid the coronavirus pandemic.
Brent crude Oil advanced 1.90% to $33.450 per barrel. while US West Texas Intermediate (WTI) crude rose 4.55% to $28.44 per barrel.
Today, Yellow metal was up 0.30% to $1653.50 per barrel.
Market Wrap: Forex
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.50% to 100.400.
The Euro US Dollar (EUR/USD) widely traded pair down by 0.39% today. This left the pairing trading around $1.08470.
The Japanese yen rose against the U.S. dollar on Monday as stock pushes higher. Today US/JPY flat to 108.800 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD slipped 0.58%to 0.61290 and NZD/USD fell 0.42% to 0.59420.
EUR/USD Intraday: Trend may change
Our pivot point is at 1.08700
Preferable Price Action: Take Short positions below pivot level with targets at 1.08064 & 1.07584 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.09247 & 1.09723.
Comment: pair below 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: Bias remain bullish
Our pivot point is at 1.22700
Preferable Price Action: Long positions above pivot with targets at 1.23574 & 1.24036 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.22241 & 1.21845.
Comment: The RSI indicator above 50 levels and pair above 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: In consolidation zone
Our pivot point is at 109.00
Preferable Price Action: Short position below pivot with the target at 108.315 and 107.896 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.550 and 109.955.
Comment: Pair 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
AUD/USD Intraday: Uptrend continues
Our pivot point is at 0.60900
Preferable Price Action: Long positions above pivot with targets at 0.61894 & 0.62344 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.60432 & 0.60061 as targets.
Comment: Resistance at 0.60900
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: In consolidation zone
Our pivot point is at 29.00
Preferable Price Action: Sell below pivot with targets at 27.27 and 25.97 in extension.
Alternative Price Action: Above pivots buy Oil with 30.44 & 31.54 as targets.
Comment: MACD in the negative zone and RSI below 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: Uptrend Continues
Our pivot point is at 1638.00
Preferable Price Action: Further upside to 1670.65 & 1687.18 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1620.10 and 1605.24.
Comment: demand for safe heaven rise as uncertainity extend.
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 may change
Our pivot point is at 22900.00
Preferable Price Action: Take Short positions below pivot with targets at 22168.00 & 21718.00 in extension.
Alternative Price Action: Above 22900.00 looks for further upside to 23406.53 & 23834.41.
Comment: MACD in negative terrritory and price below 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