ZFX: Market crash again and again, Black Friday fear?
Review:
On Thursday (March 12), the financial market continued to collapse, the global stock market dropped sharply again and the three major Wall Street indexes all fell by nearly 10%. During the period, the market halt was triggered again and trading is suspended for 15 minutes. The Dow eventually fell 9.99% and fell more than 2350 points, the worst day since the stock market crash in 1987.
The new coronavirus pneumonia epidemic continues. Investor confidence has been extremely low. Mo more detail about the stimulus policies, oil price war between Saudi Arabia and Russia, counterparty default risks are all the sensitive factors that make the market move.
In US session last night, the New York Federal Reserve announced that it will carry out open market operations to repurchase bonds with various maturities, to inject 1.5 trillion USD of short-term funds into the market. The stock market responded positively for a time, but the bounce back was just limited. Wall Street was still under pessimism.
ZFX analyst Jacob Leung said that even though there may be an irrational sell-off, investors have no room for thought in the face of a crash-like decline.
It is undeniable that the current global epidemic has caused great chaos in the financial markets. The sharp fall in each market has caused the domino effect and “deleveraging＂ operations. Some funds need to be prepared to deal with redemptions so that they need to “cash out” in the market.
As the epidemic continues to spread, or another outbreak is very likely, the market is ready for a global economic recession. If the epidemic cannot be controlled effectively, even more economic stimulus plans may not be effective to stop the crisis in the financial markets.
Let’s see if the Dow can hold the 20,000 mark today on Black Friday (13th).
AUD / USD
Market theme / sentiment: Australia may fall into recession and the Australian dollar continues to fall.
Support levels: 0.6250; 0.6200 Resistance levels: 0.6300; 0.6350
Recommendations: 0.6305 long, target 0.6350, stop loss 0.6260. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 0.6480 short, target 0.6460, stop loss 0.6510. (cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 390 pips
EUR / USD
Market theme / sentiment: The European Central Bank has not cut interest rates, and the euro decline relatively mild.
Support levels: 1.1180; 1.1150 Resistance levels: 1.1230; 1.1250
Recommendation: 1.1220 short, target 1.1180, stop loss 1.1280. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.1315 has been shorted, with a target of 1.1290. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 375 pips
GBP / USD
Market theme / sentiment: The non-US currencies all fell, and the pound fell 300 pips.
Support levels: 1.2500; 1.2450 Resistance levels: 1.2600; 1.2650
Suggestions: 1.2560 long, target 1.2590, stop loss 1.2520. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.2870 short, target 1.2830, stop loss 1.2910. (cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 340 pips
GOLD
Market theme / sentiment: Risk aversion is no longer a bullish factor for the gold market.
Support levels: 1550; 1533 Resistance levels: 1565; 1575
Recommendation: short at 1560, target at 1535, stop loss at 1575. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1636 and 1644 have been shorted, respectively, with a target of 1628. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: -106 USD
USOIL (US crude oil)
Market theme / sentiment: There is no big news from the OPEC and Russia, oil price keep low.
Support levels: 31.00; 30.50 Resistance levels: 32.00; 33.00
Recommendations: 32.1 break long, target 32.9, stop loss 31.4. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 31.4 has been long, with a target of 31.9. (TP) (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.