This post is also available in: فارسی (Persian)
Daily News – 27 March
By: Andria Pichidi
USD losses widen further as JPY gains,
Treasuries remain in rally mode, Stocks mixed but mainly positive –
USA500 closed above 2600,
USA100 closed above 20-day SMA,
UK100 drifted below 5000,
GER30 closed above 10K.
Main Stocks are currently heading southwards today
JP Morgan for the US: “We continue to believe that a recession has begun in March” – Unemployment to reach 8.5%
EU leaders fail to agree on next steps to fight the virus (EU leaders disagreed over the size and the allocation of the funds, which amounted to €1,094 billion) – They have requested revival of plan and
Merkel – Impact of coronavirus likely to be bigger than financial crisis / ESM is enough
China Industrial Profits YTD for February has fallen the most on record – (38.3% down y/y)
The US sets new restrictions aimed at cutting off Huawei from one of its main suppliers of advanced semiconductors
USOIL – down over 7%, so far bottoming at $22.37 – Next Support $22.00-$22.20 – Demand concerns remain a driver, as countries continue to go on lockdown! – THE SAME TIME – Russia and Saudi Arabia production and supply continue, to fill up global storage capacity, which by some accounts is above 75%.
GOLD – Gold still having a good week 1626 – 4-day Resistance 1630-1642, S: 1605
JPY’s and Commodities’ (or related) gains continue as risk aversion is back!
YEN – below 109, S at 107.90, R at 109.45
AUD – up from S1 at 0.6035 and 0.6000, R at 0.6125
GBP – topped at 1.2300 – S1: 1.2050 and R: 1.2325 and 1.2500.
EUR – Topped 1.1086 (200-day SMA at 1.1080) -S:1.1000
CAD –rolled lower even as crude oil fell 7%. Its below PP at 1.4092 – S1 1.3925, R1 at 1.4208
CHF – benefits for a 6th day – S1 at 0.9570, R at 0.9670
NZD at 0.5945 – R at 0.6000
TODAY: US aid package is expected to be signed off, US Personal Spending/Income, Michigan Consumer Sentiment.
Biggest (FX) Mover – NZDJPY (-98%) – drifted from 65.45 to 64.47. It trades below PP while it failed to move above 20-day SMA for a 3rd consecutive day. Daily momentum indicators continue to negatively configure while intraday indicators are a mix. RSI (48) negative, MACD histogram at zero below its signal line suggesting a decrease of the positive bias, while Stochastics post bullish cross but remain lower. – H1 ATR 0.30.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.