ZFX: The market is still upset, with strong Dollar Index and gold price
Strategy review: Financial markets stabilised on Monday (February 10), investor panic did not further fester, funds returned to the stock market, the Dow, the S&P and the Nasdaq all rose, with the S&P and Nasdaq all hit record highs.
Earlier on Monday, sentiment remained shaky as investors were unnerved by the implementation of a semi-seal in Beijing, Tianjin, Shanghai and Chongqing, china’s four largest cities. According to the latest news, the number of confirmed cases of pneumonia in mainland China has exceeded 42,000.
Jacob Leung, an analyst at ZFX, said there appeared signs of a slowdown in the numbers, but at least it did not worsen, restoring some confidence in the investment market.
However, strong US economic data last week boosted investor confidence that even in the face of the global pneumonia outbreak, it was at least a wait-and-see attitude. At present, some investors believe that the impact of the outbreak will only be short-lived, not sustainable, when the outbreak is under control, the global economy will catch up quickly, there are many investors bet that global central banks and governments will be able to support the future economy. The news that some workers and factories in mainland China began to slowly return to work and production this week was also a factor in financial markets.
ZFX analyst Jacob Leung said the current mix of long-short factors, on the one hand, the U.S. data positive, but the global economy in the outbreak is certainly negative. Even if the stock market did well yesterday, the money did not flow out of the gold and bond market, reflecting investor sprudentness. When confidence is weak, no movement can last long.
In the middle of this week, Federal Reserve Chairman Powell, will testify in the House and Senate on the semiannual monetary policy report on Tuesday and Wednesday, and markets are set to focus on how he thinks about the U.S. economy and what he thinks about the current outbreak. At such a sensitive stage, financial markets will react violently.
Of course, the news of the outbreak is still a fear, under this big question, risk aversion is still easy to rise, investors deployment is still step-by-step.
AUD/USD
Market Theme / Sentiment : Market conditions are back in place, but the Australian dollar remains cautious.
Market Tech Summary: Hourly chart shows that the Aussie dollar is currently above all averages, indicating a rise or restart. The expansion of the BB indicates market volatility. RSI is around 70, indicating an upward trend.
Support level: 0.6690;0.6670 Resistance level: 0.6720;0.6740
Conclusion: The Aussie dollar bounces back and the signal strengthens.
Suggestion:0.67 for long, target 0.6720, stop-loss at 0.6680. (It is recommended not to consider the spread of the offer)
Position follow-up and profit and loss 0.6690 has been long, not to the target 0.6705 before the first stop loss at 0.6675. (Stop Loss) (It is recommended not to consider the spread of the offer)
Cumulative profit and loss: 240 pips
EUR/USD
Market theme / sentiment : The dollar is strong and the euro is under pressure.
Market Tech Review : Hourchart shows that the euro is currently between the long and short average, indicating a slowdown in the decline. The BB has a width, indicating market fluctuations. RSI is around 33, indicating a weak trend.
Support level: 1.0910;1.0880 Resistance level: 1.0935;1.0960
Conclusion: The euro’s downward trend has been maintained.
Suggestion: 1.0930 short, target 1.0915, stop loss 1.0945. (It is recommended not to consider the spread of the offer)
Position follow-up and profit and loss: 1.0960 short, target 1.0940, stop loss 1.0980. (No offer cancelled) (It is recommended not to consider the spread of the offer)
Cumulative profit and loss: 325 pips
GBP/USD
Market Themes / Sentiments : The US dollar is strong and the low pound is slightly supported.
Market Tech Review : The hour chart shows that the pound is currently between the long and short average, indicating a slowdown in the decline. The BB has a degree of visibility, indicating the volatility of the market. RSI at 52 indicates a neutral trend.
Support level: 1.2900;1.2870 Resistance level: 1.2940;1.2980
Conclusion: Sterling rebounded but failed to look good.
Recommendation: Wait and see. (It is recommended not to consider the spread of the offer)
Position follow-up and profit and loss: 1.2920 has been shorted, the target is not up to 1.2890, 1.29, stop loss put 1.2960. (Hold) (It is recommended not to consider the spread of the offer)
Cumulative profit and loss: 370 pips
GOLD
Market Theme / Sentiment : The DOLLAR continues to strengthen, the stock market stabilizes and gold prices become weaker.
Market Tech Summary : Hourchart shows that the current gold price below all averages, foreshadowing or showing a decline. The BB expanded slightly, indicating a possible breakthrough. RSI is around 32, indicating a weak trend.
Support level: 1565;1560 Resistance level: 1573;1577
Conclusion: Gold prices have the potential to break downward.
Suggestion: 1569 short, target 1561, stop-loss 1575. (It is recommended not to consider the spread of the offer)
Position follow-up and profit/loss: 1570 is short, stop loss at 1573. (Stop Loss) (It is recommended not to consider the spread of the offer)
Cumulative profit and loss: -126 USD
USOIL (US Crude Oil)
Market Theme / Sentiment : Again there is support at the $50 mark and oil prices are stable.
Market Tech Summary : The hour chart shows that the current oil price is between the long and short average, indicating a slowdown in the decline. The BB has a width that indicates high volatility. RSI is at 60 levels, indicating a strong trend.
Support level: 50.10;49.80 Resistance level: 50.50;50.90
Conclusion: Oil prices are technically out of direction and consolidation is beginning to return to neutrality.
Suggestion: 50.2 long, target 50.5, stop loss 50. (It is recommended not to consider the spread of the offer)
Position follow-up and profit and loss: 50.1 has been long, first in the target 50.4. (Arbitrage) (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: $10.6