ZFX: Investors turned cautious after bearish figures

Tuesday (April 28) Review

• The June contract of WTI crude futures plunged by more than 20% in early European session on Tuesday, nearly reached $10 mark. The whole market is still concerned about the capacity of the global crude oil storage and the world’s largest crude oil ETF selling all the June oil contracts, triggering greater selling pressure. However, it is reported that there was a “bomb attacks” in Syria. Oil prices recovered most of the loss while the Brent oil finally rose by more than 2% due to the rising tension in the Middle East.

• The Consumer Confidence Index dropped sharply to 86.9 in April, reflecting the severe impact on the U.S. economy under the global pandemic, which hit the market sentiment on Tuesday. On the other hand, this week investors are looking forward to the result of the FOMC meeting. The market turned cautious, making the three major Wall Street indexes rose at the opening, but finally failed to maintain the recent strength.

• The greenback is obviously weak, falling against the other major currencies. Dollar Index fell below the 100 mark. The VIX continued to go lower, once approaching the 30 level, signs of lower demand of the risky assets. In addition, before the FOMC meeting, investors expect the Fed may announce more stimulus measures, increasing the uncertainty of the dollar’s outlook.

• The global pandemic is slowing down more obviously, with the number of confirmed cases worldwide remained at 3 million level, more than 210000 deaths. The outbreak in Europe continued to ease, and countries such as France, Spain, and Greece are gradually trying to ease the lockdown measures.

ZFX analyst Jacob Leung said that the bullish factors are expected to be fully “priced-in”. The bad performance of the economic figures may be the focus in the coming days. Investors may review bearish factors again, so that the market trend this week may show further signs of weakening.

AUD / USD fundamentals or market sentiment- technical trend dominated, the Aussie is obviously strong.

Support: 0.6500; 0.6480 Resistance: 0.6550; 0.6570

View: The Aussie is as strong as expected and keep bullish.

Recommendation: Go long 0.6500, target 0.6520, stop loss 0.6480. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 0.6390 long, not reach. (Cancelled) Go long at 0.6420, target 0.6440, stop loss 0.6390. (Cancelled) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 495 pips

EUR / USD fundamentals or market sentiment- a sudden drop for the dollar, and the euro fluctuated.

Support: 1.0835; 1.0810 Resistance: 1.0860; 1.0890

View: The trend of the euro is still neutral.

Recommendation: 1.0860 short, target 1.0840, stop loss 1.0880. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: — (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 425 pips

GBP / USD fundamentals or market sentiment – ​​the dollar once again dominates the move of the euro and the pound.

Support: 1.2430; 1.2400 Resistance: 1.2500; 1.2550

View: Sterling is still under the uptrend.

Recommendation: Long at 1.2440, target 1.2460, stop loss 1.2410. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.2390 short, target 1.2360, stop loss 1.2420. (Pending) 1.2470 has been short, and the stop loss is 1.2500. (Stopped) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 365 pips

GOLD fundamentals or market sentiment- rising tension makes the trend of the gold price more mixed.

Support: 1690; 1670 resistance: 1715; 1725

View: Gold price may establish another ranging pattern.

Recommendation: short 1720, target 1710, stop 1732. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1705 has been short, first stop at 1712. (Stopped) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: -27 USD

USOIL (WTI) fundamentals or market sentiment – ​​the tension in the Middle East boosted oil price, but may be just in short term.

Support: 14.50; 13.00 Resistance: 17.00; 18.00

View: Oil prices rebounded, but the fundamentals keep bearish.

Recommendation: the OTC quotes of the oil market have big differences, so no recommendation is made.

Position follow-up and profit and loss: —

Cumulative profit and loss: $ 9.8

US30 (Dow) fundamentals or market sentiment – US stocks retraced sharply after the bad figures

Support: 24200; 23900 Resistance: 24500; 24800

View: The Dow’s uptrend has not been disrupted so far.

Recommendation: short 24500, target 24200, stop loss 24800. (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 24400 has been short, hit the target 24200. (Take profit) 23900 long, target 24100, stop loss 23800. (Pending) (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 200 points

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Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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