Review:
On Wednesday (March 18) the financial markets were panic again. Even though the Trump administration launched the economic stimulus package which over $1 trillion, it failed to relieve the worry of the global pandemic. The three major Wall Street indexes plummeted again, triggering the market halt again. The Dow once plunged more than 2000 points, eventually fell 6.3%, and closed below the 20000.
The oil price war between Saudi Arabia and Russia continued to suppress the oil market. US oil (WTI) dropped more than 20%, reached near $20.
ZFX analyst Jacob Leung said, as has been mentioned, the uncertainty is still extremely high and investor confidence is very weak. No one can predict the economic outlook so that all the policies will just have short-term effect only.
The global pandemic has not yet under control. It has raged in more than 160 countries and more than 200000 people were infected, causing nearly 9000 deaths. Investment market is collapsing and the global economy is gradually coming to “frozen” condition. Many investment banks have made predictions and most of them believe that the global economy will go into a severe recession.
Besides the fluctuations in the gold market and the sharp rise of dollar, oil market has made the history. Oil prices fell to their lowest level in 18 years on Wednesday. Saudi Arabia continued its direction and claimed to increase production, together with the gloomy situation, making the US oil (WTI) once trading at around $20, which falling more than 25%.
ZFX analyst Jacob Leung said that, if the oil price war continues, we should be aware of the other “Black Swan” once again.
AUD/USD
Market theme / sentiment: Great Recession may happen and the Australian dollar collapse.
Support level: 0.5500; 0.5400 Resistance level: 0.5700; 0.5800
Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: long 0.6035, target 0.6070, stop loss 0.6000. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 395 pips
EUR/USD
Market theme / sentiment: The euro is still steadily declining under the strength of the US dollar.
Support levels: 1.0850; 1.0810 Resistance levels: 1.0960; 1.1020
Recommendation: short 1.0930, target 1.0880, stop loss 1.0960. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.1060 short, target 1.1030, stop loss 1.1090. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 385 pips
GBP/USD
Market theme / sentiment: The epidemic in UK seems severe, and the pound has plummeted.
Support levels: 1.1400; 1.1200 Resistance levels: 1.1700; 1.1800
Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.2140 long, target 1.2180, stop loss 1.2090. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 330 pips
GOLD
Market theme / sentiment: Gold price fell again after correction, risk aversion factor failed to support anymore.
Support levels: 1465; 1451; resistance levels: 1500; 1510
Recommendation: short 1485, target 1465, stop loss 1500. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1517 has been shorted, hit target 1508. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: -105 USD
USOIL(美国原油)
Market theme / sentiment: Panic selling, oil price collapse.
Support levels: 22.10; 21.60 Resistance levels: 23.00; 24.00
Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 27.2 has been long, and the stop loss is at 26.7. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: $ 9.4
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.
