Fx trading Review: The Euro interest rate stays the same, the US dollar breaks through the 98 mark, and the global stock market is lamenting about the madness of gold!
2020-03-13 14:06 from：CAPSTONE author：Jack
Capstone forex trading Review of yesterday: On Thursday, the global market once again ushered in a dark moment, the degree of panic reached the maximum since the financial crisis, and both safe-haven assets and risk assets were sold off. Gold continued to fall from a high of 1,650 US dollars, and the sell-off surged before and after the US market. Gold slumped nearly 80 US dollars in 3 hours and fell to a daily low of 1,560 US dollars. In the US market, the Fed announced that increasing liquidity once pushed the price of gold to the 1600 mark, but then its gains were all given up, and gold fell again to around $ 1575. In the oil market, following a 6% drop on Wednesday, the two oil companies continued to plunge on Thursday. During the Asian trading hours, due to Trump ’s travel ban, the two oil companies dived more than 6%. The drop in oil distribution during the day expanded to 9%, with a minimum of US $ 34.5; US Oil Insurance maintained the US $ 30 mark.
In the foreign exchange market, the US dollar was favored due to a lack of liquidity. The US dollar index rebounded strongly from around the 96 mark, breaking through two major points, hitting a maximum of 98.35, but stepped back to 97.53 in late trading. Non-US currencies are generally weak: Euro fell below 1.13 and 1.12 against the US dollar, staying at 1.11; GBP / USD plunged more than 200 points during the day, falling below 1.25; AUD / USD once fell more than 4% during the day, and then the decline narrowed .
Capstone forex trading Today's analysis:
(Europe and the United States M30)
Europe and America:
Because investors dismiss the European Central Bank's stimulus measures against the economic impact of the coronavirus, investors have flocked to the safe-haven dollar after the Fed announced that it will inject liquidity into the banking system showing signs of pressure. Some critics of the ECB's measures include French President Macron, who said yesterday that the ECB's measures are not sufficient today and Europe will not allow the financial crisis or even the economic crisis to spread, suggesting the possibility of other stimulus measures. Today, we continue to pay attention to the dynamic development of the global epidemic. The upper pressure levels are 1.1253, 1.1300 and 1.1351, and the lower support levels are 1.1142 and 1.1080. Under pressure, short-term rallies are the mainstay.
EUR / USD trading strategy:
Strategy 1: Go short on rallies (56 points)
Entry: 1.1197 Stop Loss: 1.1253 Take Profit: 1.1141
Strategy 2: Go long and go long (56 points)
Entry: 1.1253 Stop Loss: 1.1197 Take Profit: 1.1309
The sharp drop in gold yesterday may be due to market disappointment with policy. Trump's speech Thursday morning did not announce any actual health measures, but merely talked about economic measures. Investors had expected Trump to announce a heavy stimulus policy, but Trump only announced the implementation of a travel ban. In addition, the European Central Bank ’s interest rate decision announced last night was less lenient than expected. After the Central Bank of the United States Federal Reserve and the Bank of England announced emergency interest rate cuts, the ECB unexpectedly announced that it would not move. Although it announced measures to provide immediate liquidity support and expand the scale of debt purchase, it failed to restore market confidence. It is difficult to alleviate the short trend within the day, and continue to maintain the rallies and short thinking. The upper pressure is 1565, 1585, 1613, and the lower support is 1546, 1535.
Capstone forex trading Focus on the data today:
German February CPI monthly rate final value
French monthly CPI monthly rate
Bank of England announces minutes of special monetary policy meeting
U.S. February import price index monthly rate
U.S. University of Michigan Consumer Confidence Index
[Capstone forex trading Disclaimer]:
This analysis and trading strategy is an objective description of the current market trend. Investors need to strictly follow the trend, light positions, and stop losses! Orders cannot be completely based on trading strategies, only for reference!
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