ZFX: Risk appetite gradually return to the U.S. stock market

Strategy Review: Financial markets moved from cautious on Wednesday (February 12) as signs of a pneumonia outbreak or slowdown in mainland China weakened, and Federal Reserve Chairman Colin Powell reiterated confidence in the U.S. economic outlook, further releasing optimism, with money continuing to flow into the stock market, with the Dow, The S and P and Nasdaq index all-time highs, with the Dow “chasing back” by more than 270 points.

Jacob Leung, an analyst at ZFX, said the pattern of the outbreak was back in the fade phase and the risk appetite landscape could rise. Markets such as the stock market, bond market, oil market, the trend is reflected as a regular way, only the gold market maintain.

Gold prices were not significantly under pressure yesterday from optimistic market conditions, again testing above $1,560, but quickly besupportd by buying.

ZFX analyst Jacob Leung said the market clearly did not give up holding gold, believed to have been used as “insurance” to hedge against the outbreak.

In another focus last night, Federal Reserve Chairman Colin Powell gave testimony to Congress for the second year in a row, pointing to the current low unemployment rate, high wages and high job growth, and stressing that there was no lasting imbalance in the economy. On the outbreak, he said the bureau is closely watching and that the expected impact on the U.S. economy will soon be reflected in economic data.

Jacob Leung, an analyst at ZFX, said Mr Powell’s comments were unaguid or guided, and that his view of the US economy remained positive, as expected, and was actually supportive of the US dollar.

U.S. Treasury Secretary Mnuchin said Wednesday that the negative impact of the global pneumonia outbreak on the economy is a one-off event that is not expected to last beyond 2020. It can be seen that, as time goes on, the uneasiness in the market begins to slowly resolve, showing a “touch the stone across the river” market conditions.

However, this morning’s outbreak news also triggered financial market shocks, China’s Hubei Province, the number of new confirmed cases suddenly rose to 14,840 cases, including more than 13,000 clinical diagnoses. Risk aversion, the stock market fell gold prices rose and other epidemic mode again, the intraday market conditions are likely to enter a state of vigilance again.

AUD/USD

Market Theme / Emotions : The outbreak re-fermented and the Aussie dollar is cautious.

Market Technology Summary : Hourchart shows that the Current Australian dollar is between the long average, indicating a decline or weakening. The expansion of the Baoli plus channel indicates post-market volatility. RSI is around 45, indicating a neutral trend.

Support level: 0.6705;0.6690 Resistance level: 0.6730;0.6740

CONCLUSION: The Australian dollar suddenly plummeted, undermining the rally.

Recommendation: Wait and see. (It is recommended not to consider the spread of the offer)

Position follow-up and profit and loss: 　 0.6720 has been long, the target changed to 0.6725 exit, stop loss 0.67. (Hold) (It is recommended not to consider the spread of the offer)

Cumulative profit and loss: 260 pips

EUR/USD

Market Theme / Sentiment : 　 The dollar is strong and the euro is one wave lower than the wave.

Market Technology Brief Review : Hourchart shows that the euro is currently between the long and short average, indicating a slowdown in the decline. The expansion of the Baoli plus channel indicates that there is still a possibility of a downside breakthrough in the post-market market. RSI is around 30, indicating a downward trend.

Support level: 1.0850;1.0800 Resistance level: 1.0890;1.0920

Conclusion: The euro has fallen.

Suggestion: 1.0885 short, target 1.0860, stop loss 1.0915. (It is recommended not to consider the spread of the offer)

Position follow-up and profit and loss: 1.0930 short, not to the price, target 1.0915, stop loss 1.0945. (Untimed cancellation) 1.0900 is short, medium target 1.0880. (Arbitrage) (It is recommended not to consider the spread of the offer)

Cumulative profit and loss: 345 pips

GBP/USD

Market Themes / Sentiment : The euro broke and the pound was dragged down.

Market Technology Brief Review : The hour chart shows that the pound is currently between the long and short average, indicating a slowdown in the rise. The Baoli plus channel has a degree of visibility, indicating the volatility of the post-market. RSI at 43 indicates a weak trend.

Support level: 1.2950;1.2930 Resistance level: 1.2980;1.3000

Conclusion: The pound remains in the rising channel.

Suggestion: 1.2970 short, target 1.2955, stop loss 1.2980. (It is recommended not to consider the spread of the offer)

Position follow-up and profit and loss: 1.2980 has been shorted, only not to target 1.2950, change to 1.2955, stop loss put 1.2980. (Hold) (It is recommended not to consider the spread of the offer)

Cumulative profit and loss: 390 pips

GOLD

Market Theme / Emotions : The development of the epidemic has stimulated the gold market again.

Market Technology Summary : Hour chart shows that the current gold price above all averages, indicating or rising restart. The expansion of the Baoli plus channel indicates a post-market or breakthrough. RSI is around 57, indicating a strong trend.

Support level: 1566;1562 resistance level: 1572;1577

Conclusion: The decline of gold prices is limited and the consolidation is pending change.

Suggestion: 1572 short, target 1568, stop loss 1576. (It is recommended not to consider the spread of the offer)

Position follow-up and profit and loss: 1569 has been shorted, change target 1564 has been in. (Arbitrage) 1561 short, target 1558, stop loss 1564. (Reserved) (It is recommended not to consider the spread of the offer)

Cumulative profit and loss: -121 USD

USOIL (US Crude Oil)

Market Theme / Sentiment: Risk appetite ferments and oil prices get rid of negative news from oil stocks.

Market Technology Brief Review : Hourly chart shows that the current oil price is between the long and short average, indicating a slowdown in the rise. The Baoli plus channel has a width that indicates high volatility. RSI at 58 levels indicates a strong trend.

Support level: 51.30;51.00 Resistance level: 51.70;52.00

Conclusion: Oil prices break through the small range, but subject to the large range.

Suggestion: 51.4 long, target 51.7, stop loss 51. (It is recommended not to consider the spread of the offer)

Position follow-up and profit and loss: 50.4 long, target 50.7, stop loss 50. (No offer cancelled) (Note the difference in the current over-the-counter spot price) (It is recommended not to consider the spread of the offer)

Cumulative profit and loss: $10.9

Risk Tip: The above contents are for informational purposes only and do not represent ZFX’s position, and ZFX does not assume any form of loss arising from any trading and purchase operations conducted herein. Please firmly their own thinking, do a good job of risk control.