Fx trading Review: Global central banks release water, but this time it is not a question of money! The current epidemic situation, keep watching the government's next move!
2020-03-17 11:40 from：CAPSTONE author：Jack
Capstone forex trading Review of yesterday:On Monday, the Federal Reserve suddenly announced an emergency 100 basis point rate cut, offering a zero interest rate + US $ 700 billion stimulus plan. The biggest easing policy package in history has not saved the market, but has escalated panic, and the global plunge mode has opened again. Gold dropped from the intraday high of 120 US dollars to a minimum below 1460 US dollars; however, gold rose several times during the late session and successfully recovered some of the lost ground, eventually closing at 1,514.20 US dollars per ounce; due to escalating market panic, and Saudi Arabia The oil price war showed no signs of easing. The United States and Buenos oil plunged again within a day. Brent crude oil fell more than 14% and broke the US $ 30 mark for the first time since February 11, 2016. WTI crude oil's intraday decline once expanded. To 14.61%, the two oil companies basically gave up their gains on Friday.
In the case of the Fed's interest rate cuts and large-scale water releases, the US dollar index once performed stubbornly, but the US market accelerated its decline and eventually closed below the 98 mark. On the other hand, the euro ’s gains were quite sharp. The exchange rates of the euro against the dollar and the euro against the sterling have all closed higher. During the European trading hours, the euro rose 3.6% to 11.4724, a record high.
Capstone forex trading Today's analysis:
(Europe and the United States M30)
Europe and America:
In the case of simultaneous global central bank shots, the market has not calmed down. After the opening of the US stock market on Monday, the fourth fuse in the history was triggered quickly. EU leaders will hold an emergency meeting on March 17. EU officials said euro zone finance ministers agreed to a fiscal stimulus equivalent to 1% of GDP to deal with the impact of new crown pneumonia. During the day, the ZEW index in the euro zone was announced, and in the evening, the US retail data was concerned. The upper pressure levels were 1.1193, 1.1246, and 1.1300, and the lower support levels were 1.1153, 1.1084, and 1.1057.
EUR / USD trading strategy:
Strategy 1: Go long and go long (40 points)
Entry: 1.1193 Stop Loss: 1.1153 Take Profit: 1.1233
Strategy 2: Go short (40 points)
Entry Level: 1.1153 Stop Loss Level: 1.1193 Take Profit Level: 1.1103
From a fundamental point of view, the February "terrorist data" of the United States released today has the opportunity to set off a war between long and short sides. It should be noted that a large number of retail stores in the United States have recently closed due to the epidemic. If the retail sales data does not perform as expected, the gold bulls may seize the opportunity to recover yesterday's lost ground. Technically speaking, in the case of a sharp drop in gold prices, gold shorts have a short-term technical advantage. According to the gold daily chart, the gold bulls still holding on at this moment will have their next upward target above the solid resistance of $ 1550, while the shorts currently need to overcome are the support levels of $ 1456 and $ 1450. If these two important support levels are lost, The bears will try to keep the price of gold down to the next near-term goal of $ 1,400.
Capstone forex trading Focus on the data today:
UK unemployment rate in February
Euro zone ZEW economic sentiment index in March
German ZEW Economic Climate Index in March
U.S. February retail sales monthly rate
U.S. February industrial output monthly rate
U.S. January commercial inventory monthly rate
U.S. API crude stocks for the week (10,000 barrels)
[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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