Market Wrap: Stocks, Bonds, Commodities
American major stock indices gave close down for a third straight session on Tuesday as heavyweight technology names extended their sell-off to send the Nasdaq into correction territory, while Tesla suffered its biggest daily percentage drop after the stock was passed over for inclusion in the S&P 500 index.
The Dow Jones Industrial Average fell 632.42 points (2.25%) to 27,500.89, the S&P 500 lost 95.12 points (2.78%) to 3,331.84 and the Nasdaq Composite dropped 465.44 points (4.11%) to 10,847.69.
Asian stocks were set to come under pressure on Wednesday after Wall Street slipped for the third consecutive day led by declines in heavyweight technology companies, and oil prices hit lows not seen since June and Astra Zeneca stop its vaccine trial news
MSCI’s index of Asia-Pacific stocks outside Japan fell 0.91% to 708.20 levels. Australian index slipped 2.15% to 5,878.60. Japanese Nikkei lost 1.04% to 23,032.50.
European stocks were higher on Wednesday, with the Stoxx Europe 50 Index rose 0.26% to 3,276.25, Germany’s DAX gained 0.30% to 13,009.50 and France’s CAC flat to 4,976.10 and U.K.’s FTSE 100 lost 0.05% to 5,927.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 3.14% to 0.663.
Oil futures fell again on Wednesday after a sharp slide in the previous session, as a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand.
Spot Brent crude oil fell 0.68% to $39.54 per barrel. US West Texas Intermediate crude lost 0.60% to $39.54 a barrel.
The yellow metal traded 0.46% lower to 1927.50 dollars per ounce.
Market Wrap: Forex
The dollar found support on Wednesday as a stock market slide hurray Traders into selling riskier currencies, while worries about Brexit pushed the pound down to a new six-week low.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, higher 0.15% to 93.580.
The Euro US Dollar (EUR/USD) widely traded pair down 0.10% today. This left the pairing trading around $1.17690.
The Japanese yen rose against the U.S. dollar on Tuesday as stock pushes lower. Today US/JPY slipped 0.15%to 105.870 level.
Other commodity-related currency mixed against U.S dollar, AUD/USD flat to 0.72130 and NZD/USD rose 0.05% to 0.66210.
EUR/USD Intraday: Resistance at 1.17890
Our pivot point is at 1.17890
Preferable Price Action: Take Short positions below level with targets at 1.17435 & 1.17205 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.18350 & 1.18589.
Comment: Pair below its 20MA & 55MAand 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: Strong trend on the downside
Our pivot point is at 1.29800
Preferable Price Action: Short positions below pivot with targets at 1.28953 & 1.28558 in extension.
Alternative Price Action: Price above pivot would call for further upside to 1.30681 & 1.31075.
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
USD/JPY Intraday: Trend downside
Our pivot point is at 105.970
Preferable Price Action: Short position below pivot with the target at 105.653 and 105.452 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.302 and 106.501.
Comment: price below 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
AUD/USD Intraday: Resistance at 0.72330
Our pivot point is at 0.72330
Preferable Price Action: Short positions below pivot with targets at 0.71805 & 0.71558 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.72856 & 0.73117 as targets.
Comment: Pair below its 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
CRUDEOIL Intraday: Resistance at 37.25
Our pivot point is at 37.25
Preferable Price Action: Sell crude below pivot with targets at 36.20 and 35.60 in extension.
Alternative Price Action: Above pivots buy Oil with 38.34 & 38.94 as targets..
Comment: Crude below Its 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
XAU/USD Intraday: Support at 1921.50
Our pivot point is at 1921.50
Preferable Price Action: Further upside to 1933.98 & 1940.03 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1908.82 and 1902.03.
Comment: MACD in positive territory and price above 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: Trend on downside
Our pivot point is at 27700.00
Preferable Price Action: Take sell positions below pivot with targets at 27310.00 & 27000.00 in extension.
Alternative Price Action: Below 27700.00 looks for further upside to 28090.00 & 28420.00.
Comment: Price below its 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