ZFX: Investment sentiment keeps positive under global pandemic
Review:
On Wednesday (March 25), the sentiment in the financial market is still optimistic, mainly looking forward to the $2 trillion stimulus plan, which will be agreed by both Republican and Democratic Party soon. However, at the end of the trading day, it is reported that there is a disagreement over the expansion of jobless benefits in the plan. The three major Wall Street indexes retraced from the top of the day.
The U.S. Senate originally planned to vote on the plan on Wednesday, but several Republicans senators asked for amendments to some clauses, causing conflicts with Democrats. Risk aversion returned after the news, but US Treasury Secretary Mnuchin said that the plan is still expected to be approved in the Senate on Wednesday night and then submitted to the House of Representatives for review.
The situation of the global new coronavirus pandemic is still worrying. The number of confirmed cased worldwide has soared. At present, more than 460000 people have been infected, involving more than 170 countries, causing more than 20000 deaths.
The investment market continues to digest the Fed’s unlimited QE policy, which now has obviously increased the volatility of various assets. Stock markets has bounced back further, prompting reallocation of portfolio. In currency markets, the euro gained near 100 pips, but the Australian dollar has dropped back down after breakthrough. In the commodity market, the volatility of the gold market was relatively lower and tended to be ranging. The oil market moved like a V shape, with high intraday volatility.
ZFX analyst Jacob Leung said that the multiple stimulus measures are just “buy time”, the investment sentiment may stay positive until next week.
AUD/USD
Market theme / sentiment: The Australian dollar dropped back, may be a correction.
Support levels: 0.5850; 0.5800 Resistance levels: 0.5930; 0.5980
Recommendation: 0.5850 to go long, target 0.5880, stop loss 0.5830. (It is recommended not to consider the bid-ask spread
factor)
Position follow-up and profit and loss: 0.5930 has been long, first hit the target of 0.5970. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 535 pips
EUR/USD
Market theme / sentiment: The selling pressure of dollar benefits the euro.
Support levels: 1.0830; 1.0750 Resistance levels: 1.0950; 1.0980
Recommendation: fluctuate market, it is not suitable for pending orders. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.0900 has been shorted, and the stop loss is at 1.0930. (Stop Loss) 1.0830 has been long, stop loss at 1.0810 before reaching the target. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 365 pips
GBP/USD
Market theme / sentiment: The pound tends to rebound, but the trend is quite unstable.
Support: 1.1750; 1.1650 Resistance: 1.1900; 1.1950
Recommendation: fluctuating, it is not suitable for pending orders. (It is recommended not to consider the bid-ask spread
factor)
Position follow-up and profit and loss: 1.1700 has been long, and the stop loss is 1.1670 before reaching the target 1.1740. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 230 pips
GOLD
Market theme / sentiment: After sharp rising, gold price may technically consolidate.
Support level: 1580; 1560 Resistance level: 1630; 1660
Recommendation:spread widen, wait and see. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: — (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: -70 USD
USOIL(美国原油)
Market theme / sentiment: The stock market continues to rebound, supporting oil prices.
Support level: 24.00; 23.50 Resistance level: 25.50; 26.50
Recommendation: No recommendation due to significant spreads in OTC quotes.
Position follow-up and profit and loss: —
Cumulative profit and loss: $ 9.8
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX is not responsible for any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and take appropriate risk control.