ZFX: financial market keep volatile, fluctuations are expected
Review:
Tuesday (March 10) financial markets are still in a sensitive state. After another “Black Monday”, investors are paying close attention to the news of the OPEC and Trump’s policies. The trend of various markets such as gold and forex still very uncertain. So far investors were not sure about the details of Trump’s policies, but it was reported that Trump might lower income tax rate to 0%, which caused strong buying in the market. The three major Wall Street indexes rebounded and all rose nearly 5% to close, including the Dow rising more than 1,000 points.
ZFX analyst Jacob Leung said that as the market conditions have been a bit too pessimistic earlier, technically a certain extent of bounce back is likely to occur. Trump’s policy is just to further boost Wall Street confidence.
Due to the two negative factors, “Oil price war” and the new coronavirus, the market trend is still undoubtedly volatile on Tuesday. The market sentiment may be slightly stable, as investors are now expecting for the stimulus policies implemented in various countries.
News from Saudi Arabia and Russia continues to be the driving force for oil prices, but it seems to be struggling. News often differs so that it is still not clear whether the two parties will increase oil production or cooperate to maintain the order in oil market.
However, the market conditions are not just optimistic. It is expected that the strong rebound of the stock market will not be maintained, especially the global pneumonia epidemic has not improved, and it is impossible to judge whether the worst situation has passed.
ZFX analyst Jacob Leung said that, as has been mentioned, policy implementation and the virus impact will inevitably lead to volatility. What more important thing is that Trump policies and even further rate cut by FED can stimulate investment sentiment, however, if the basic fundamental factors have no big change, it would be a signal of “buy the rumor sell the news”.
On the whole, as expected, there are some disorderly fluctuations in various market trends, and it is recommended to maintain conservative strategy. On Wednesday morning, the benchmark 10-year U.S. Treasury yield fell from 0.8% to around 0.68%, reflecting that the positive atmosphere has begun to change again, foreseeing uncertainty.
AUD/USD
Market theme / sentiment: The Australian dollar is suppressed by the Reserve Bank of Australia’s rate cut expectations.
Support levels: 0.6500; 0.6480 Resistance levels: 0.6530; 0.65550
Recommendation: 0.6530 short, target 0.6500, stop loss 0.6570. (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: 360 pips
EUR/USD
Market theme / sentiment: The Euro trend is similar to that of the British Pound, which is suppressed by the withdrawal of safe-haven funds.
Support level: 1.1300; 1.1280 Resistance level: 1.1330; 1.1380
Recommendation: 1.1340 short, target 1.1315, stop loss 1.1355. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.1360 has been shorted and the stop loss is 1.1385 before reaching the target 1.1320. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 365 pips
GBP/USD
Market theme / sentiment: Euro-based currencies are taking a hedging role, and the pound is rapidly returning to the downtrend as the stock market up.
Support levels: 1.2900; 1.2850 Resistance levels: 1.2950; 1.3030
Recommendations: 1.2960 short, target 1.2930, stop loss 1.3000. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.3030 has been shorted, and the stop loss is 1.3055 before reaching the target 1.3000. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 310 pips
GOLD
Market theme / sentiment: The risk aversion dissipated slightly, and the price of gold moved towards 1640.
Support levels: 1652; 1641 Resistance levels: 1665; 1670
Recommendation: short 1649, target 1635, stop loss 1656. 1660 short, target 1654, stop loss 1666. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1662 and 1677 (the price was cancelled) have been shorted, and the target is 1650. (Arbitrage) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: -138 USD
USOIL(美国原油)
Market theme / sentiment: It is reported that Russia is still considering cooperation to stabilize oil prices. Oil prices fluctuate but tend to rise.
Support levels: 35.00; 34.00 Resistance levels: 36.50; 37.00
Recommendation: 35 longs, target 35.5, stop loss 34.5. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 34 have been shorted and have hit the target of 33.5. (Arbitrage) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: $ 9.1
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.