Fx trading Review: Goldman Sachs staged a gold rally with a thousand points, and the global central bank released a dollar of water!
2020-03-18 11:43 from：CAPSTONE author：Jack
Capstone forex trading Review of yesterday:
Gold's trend was volatile on Monday, with intraday volatility exceeding $ 80. In the European session, gold dived 14 US dollars in a straight line within 5 minutes and eventually fell below the 1470 mark. However, it rose by more than 20 US dollars in 10 minutes in the US market. It then continued to rise once and returned to above US $ 1,550, and finally closed slightly up 0.89% to 1527.64 USD / ounce. The two oils opened higher and lowered in the day. Brent crude oil rose rapidly at the beginning of the session and successfully returned to more than 30 US dollars. WTI crude oil also rose to more than 30 US dollars / barrel on Tuesday morning. Both oil oil rose up to 5%. However, the situation began to reverse during the European session, and the gains of the two oils gradually narrowed, and they gradually fell later. Among them, WTI crude oil fell more than 7% at one time, Brent crude oil fell as much as 3.6%, all refreshing a new low since 2016. On Wednesday, the two oil companies continued to open lower, and WTI crude oil fell below its lowest settlement price in New York since 2003.
The currency market is also not calm. After a brief dormancy on Monday, the US dollar resumed its upward mode, gaining as much as 1.62% during the day, and for the first time since February 27, it returned to the 99-point mark and approached the 100 mark again. On the other hand, non-US currencies have weakened collectively. The euro hit a low of 1.10 against the US dollar for the first time since February 27 and fell as much as 1.92% during the day. The pound fell more than 2% against the US dollar and broke the 1.21 mark for the first time since September last year.
Capstone forex trading Today's analysis:
(Europe and the United States M30)
Europe and America:
Today, there are still a lot of important economic data in the Eurozone and the United States: the final value of the February CPI annual rate in February, the monthly CPI monthly rate, and the January quarterly adjusted trade account in the Eurozone will be announced at 18:00; 20:30 will be announced The total number of new housing starts and construction permits in the United States in February; the same month the Canadian monthly CPI rate was also released. As the impact of the epidemic is gradually included in the statistics, through the performance of the above data, we can not only understand the current inflation situation relatively accurately, but also to some extent, peek into the actual damage of the developed economies in Europe and the United States. If the recession crisis deepens, the panic in the market will probably not easily dissipate. During the day, the upper pressure levels are 1.1038 and 1.1094, and the lower support levels are 1.0954 and 1.0894. The dips above the support level are mostly long.
EUR / USD trading strategy:
Strategy 1: Do more on dips (60 points)
Entry: 1.1015 Stop Loss: 1.0954 Take Profit: 1.1075
Strategy 2: Go short (60 points)
Entry: 1.0954 Stop Loss: 1.1015 Take Profit: 1.0894
From a fundamental point of view, there are two factors that are crucial for the future trend of gold: liquidity and inflation. According to foreign media analysis, the liquidity of the U.S. commercial paper market is on the verge of drying up on Tuesday, which is like the end of the day for large institutions and retail investors that rely on short-term capital flows. If the stock market is under pressure again, the scenario of selling gold in exchange for cash in order to meet margin requirements may be staged again. And the relationship between the price of gold and real inflation (or real interest rates) may be closer than we think. Inflation expectations can be said to be an important factor leading the long-term trend of gold prices. As was the case in 2008, if deflation expectations heat up, the price of gold may fall with it. During the day, the upper pressure levels were 1575 and 1598, and the lower support levels were 1506 and 1480.
Capstone forex trading Focus on the data today:
Eurozone seasonally adjusted trade account in January (100 million euros)
Euro zone final CPI annual rate in February
Annualized total number of new housing starts in February in the U.S. (10,000 households)
Total U.S. construction permits in February (10,000 households)
U.S. week EIA crude oil inventories (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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