ZFX: A million! Coronavirus fears hit the markets again
Review:
On Wednesday (April 1), the three major Wall Street indexes plunged again, all fell more than 4%, even if the economic figures performed better than expected. Investors are worried that the coronavirus will keep the economy shut down longer than expected.
US President Trump has warned that the next two weeks will be “very painful” and the situation will worsen, calling on the public to be prepared. The White House recently predicted 100000 to 240000 deaths in US even with the current strict social distancing measures. The market is expected that the pandemic will not be under controlled in the short term, increasing the pressure on the stock market.
Last night, the US economic figures were better than expected. The ADP showed that private companies cut 27000 jobs in March, better than expected which was cutting 150000. In addition, the US ISM manufacturing index in March recorded 49.1, better than expected which was 45.
However, the results did not support the market much. Many analysts believe that under the severe epidemic environment, investors will be cautious as the figures may not include the impact of the epidemic yet.
ZFX analyst Jacob Leung said that, as has been mentioned earlier, as long as the outbreak has not showed any signs of improvement, the sentiment in the financial markets will be quite unstable.
The global new coronavirus pandemic has ravaged more than 200 countries, seems even out of control at the moment. The number of confirmed cases continues to increase by “tens of thousands”, with the latest confirmed cases exceeding 930000 and more than 46000 deaths. The World Health Organization (WHO) said on Wednesday that more than 1 million people will be infected and more than 50000 will die in the next few days.
ZFX analyst Jacob Leung said that the financial market continues to be unstable. It does not rule out that some asset prices may once again move disorderly. It can be seen on Wednesday that although the stock market trend was all the time bearish, the FX and gold market were quite volatile.
AUD/USD
Market theme / sentiment: The market is unstable, the Aussie unexpectedly fluctuates in a big range, and the decline is slight.
Support levels: 0.6050; 0.6030 Resistance levels: 0.6100; 0.6150
Recommendations: 0.6100 short, target 0.6050, stop loss 0.6150. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 0.6100 has been long, and the stop loss is at 0.6070. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 505 pips
EUR/USD
Market theme / sentiment: The greenback bounced back, euro hurt the most.
Support levels: 1.0900; 1.0860 Resistance levels: 1.0980; 1.1030
Recommendations: 1.0900 long, target 1.0930, stop loss 1.0860. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.0980 has been long, and the stop loss is at 1.0950. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 360 pips
GBP/USD
Market theme / sentiment: Sterling has fallen into a consolidation phase.
Support levels: 1.2365; 1.2300 Resistance levels: 1.2440; 1.2480
Recommendations: 1.2350 short, target 1.2300, stop loss 1.2400. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.2400 has been shorted, changed the target to 1.2380 and left the stop at 1.2440. (Holding) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 350 pips
GOLD
Market theme / sentiment: Gold price is more volatile after a downward breakthrough.
Support levels: 1575; 1565; resistance levels: 1590; 1605
Recommendations: short at 1590, target 1582, stop loss 1597. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1590 has been shorted, hitting target 1580. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: -$60
USOIL(美国原油)
Market theme / sentiment: Oil price war may have progress, oil prices are now relatively stable.
Support levels: 22.40; 21.80 Resistance levels: 23.50; 24.00
Recommendations: Due to the large difference in OTC quotes, no recommendation is made.
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.