#WaveAnalysis
#AUDUSD broke multi-year support level 0.6000
Likely to fall to 0.5500
https://fxpro.news/market-snapshots/audusd-wave-analysis-18-march-2019-20200318/
#AUDUSD broke multi-year support level 0.6000
Likely to fall to 0.5500
https://fxpro.news/market-snapshots/audusd-wave-analysis-18-march-2019-20200318/
#WaveAnalysis
#NZDUSD broke round support level 0.6000
Likely to fall to 0.5800
https://fxpro.news/market-snapshots/nzdusd-wave-analysis-18-march-2019-20200318/
#NZDUSD broke round support level 0.6000
Likely to fall to 0.5800
https://fxpro.news/market-snapshots/nzdusd-wave-analysis-18-march-2019-20200318/
Almost unprecedented volatility remains in the stock markets: DJI's 6% growth following Tuesday's results alternates with a 5.5% failure at the start of trading on Wednesday. FTSE100 lost 4.1%, Dax - 4.9%.
The Fed is stepping up its support for credit markets in an attempt to avoid an abnormal craving for dollars. Despite this, DXY has been adding 1.6% for a second day to the March 2017 highs. Commodity currencies are undergoing a real devaluation against the dollar (see table). GBPUSD entered the freefall, losing 2.5% and trading at 1.1740 - the lows since 1985.
Gold today swung between $1485 and $1545. This is an abnormally wide range, but it is shrinking for the third day in a row.
Brent in the spot market fell below $ 27, the lowest since 2003, almost half price from March 3.
Despite large-scale stabilization measures, dollar thrust prevails in the markets - as it become the equivalent of cash for financial markets.
The Fed is stepping up its support for credit markets in an attempt to avoid an abnormal craving for dollars. Despite this, DXY has been adding 1.6% for a second day to the March 2017 highs. Commodity currencies are undergoing a real devaluation against the dollar (see table). GBPUSD entered the freefall, losing 2.5% and trading at 1.1740 - the lows since 1985.
Gold today swung between $1485 and $1545. This is an abnormally wide range, but it is shrinking for the third day in a row.
Brent in the spot market fell below $ 27, the lowest since 2003, almost half price from March 3.
Despite large-scale stabilization measures, dollar thrust prevails in the markets - as it become the equivalent of cash for financial markets.
EM Central Banks change their crisis playbooks, despite currencies devaluation
The central banks of developed countries continue to press the monetary easing pedal. And this is a traditional way for them to support the economy in the face of a looming recession.
What goes beyond tradition is the reaction of the central banks of emerging market countries.
https://fxpro.news/daily-forex-outlook/em-central-banks-change-their-crisis-playbooks-despite-currencies-devaluation-20200319/
The central banks of developed countries continue to press the monetary easing pedal. And this is a traditional way for them to support the economy in the face of a looming recession.
What goes beyond tradition is the reaction of the central banks of emerging market countries.
https://fxpro.news/daily-forex-outlook/em-central-banks-change-their-crisis-playbooks-despite-currencies-devaluation-20200319/
BoE increase QE by £200 billion to a total of £645 billion, and to reduce Bank Rate by 15 basis points to 0.1%.
https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2020/monetary-policy-summary-for-the-special-monetary-policy-committee-meeting-on-19-march-2020
https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2020/monetary-policy-summary-for-the-special-monetary-policy-committee-meeting-on-19-march-2020
Coronacrisis as an impulse for faster monetary system digitalization
Apart from the purely negative consequences, we can also observe quite exciting processes, like faster digitalization of our life. Remote work has long been gaining popularity around the world. Now it is a necessity. The Internet had a long time ago made it possible to work from home in many sectors of the economy. There is a growing expectation that against the backdrop of the coronavirus epidemic, many employers will finally choose this employment model. Remote work, online education, online medical consultations, even robot management in factories, ordering products at home – the economy is becoming more and more digital. Digital currencies in it look like a natural evolutionary stage.
https://fxpro.news/analysis-and-insight/coronacrisis-as-an-impulse-for-faster-monetary-system-digitalization-20200319/
Apart from the purely negative consequences, we can also observe quite exciting processes, like faster digitalization of our life. Remote work has long been gaining popularity around the world. Now it is a necessity. The Internet had a long time ago made it possible to work from home in many sectors of the economy. There is a growing expectation that against the backdrop of the coronavirus epidemic, many employers will finally choose this employment model. Remote work, online education, online medical consultations, even robot management in factories, ordering products at home – the economy is becoming more and more digital. Digital currencies in it look like a natural evolutionary stage.
https://fxpro.news/analysis-and-insight/coronacrisis-as-an-impulse-for-faster-monetary-system-digitalization-20200319/
#WaveAnalysis
#CADJPY reversed from key support level 74.70
Likely to rise to 76.50
https://fxpro.news/market-snapshots/cadjpy-wave-analysis-19-march-2019-20200319/
#CADJPY reversed from key support level 74.70
Likely to rise to 76.50
https://fxpro.news/market-snapshots/cadjpy-wave-analysis-19-march-2019-20200319/
#WaveAnalysis
#Chevron approached support level 50.00
Likely to fall to 40.00
https://fxpro.news/market-snapshots/chevron-wave-analysis-19-march-2019-20200319/
#Chevron approached support level 50.00
Likely to fall to 40.00
https://fxpro.news/market-snapshots/chevron-wave-analysis-19-march-2019-20200319/
High volatility remains on the stock markets, but on Thursday, the indices are moving in both directions, not only down. DJI adds 1.6%. FTSE100 added 0.8%, EuroStoxx50 - strengthens by 2.0%.
Today, there have been new policy easing from the Fed, the Bank of England, the Reserve Bank of Australia, Brazil, South Africa and many Asian Central Banks. Despite softening policies, some of the currencies of developing countries are adding, believing that these measures will support the economy in the future.
Gold is trading at $ 1,482, for the first time in 15 months, stably trading below the 200-day average.
Brent is adding $0.5 to Wednesday's close. WTI grew 8% today, supported by the announcement strategic reserve buying in the USA.
Despite the unstable nature of trading and the persistence of increased volatility, there are more and more "growth zones" - market sectors where purchases occur. For now, it may be bargain hunters, not long-term buyers.
Today, there have been new policy easing from the Fed, the Bank of England, the Reserve Bank of Australia, Brazil, South Africa and many Asian Central Banks. Despite softening policies, some of the currencies of developing countries are adding, believing that these measures will support the economy in the future.
Gold is trading at $ 1,482, for the first time in 15 months, stably trading below the 200-day average.
Brent is adding $0.5 to Wednesday's close. WTI grew 8% today, supported by the announcement strategic reserve buying in the USA.
Despite the unstable nature of trading and the persistence of increased volatility, there are more and more "growth zones" - market sectors where purchases occur. For now, it may be bargain hunters, not long-term buyers.
The first cryptocurrency jumped more than 13% in one day and changed hands above $6k. The crypto market in general and Bitcoin, in particular, have shown a significant price jump in the last 24 hours. These are still not the values from which the market collapsed a week ago, but now Bitcoin is fighting for $6k, not for $6k. After consolidating around $5k, buyers attracted by the opportunity to get it cheaper after the massive sale-off in the past week.
The altcoin market showed equally impressive growth. The leading alternative cryptocurrencies grew by 8-30% in a day. However, the growth rate still did not reach the rate of decline last week. The crypto market will have to show steady positive dynamics to get back the buyers' confidence in the asset prospects. Despite the growth, the Crypto Fear & Greed Index is still in the area of "extreme fear", and even declined from 12 to 9 in a day on the back of the suspension of growth.
The altcoin market showed equally impressive growth. The leading alternative cryptocurrencies grew by 8-30% in a day. However, the growth rate still did not reach the rate of decline last week. The crypto market will have to show steady positive dynamics to get back the buyers' confidence in the asset prospects. Despite the growth, the Crypto Fear & Greed Index is still in the area of "extreme fear", and even declined from 12 to 9 in a day on the back of the suspension of growth.
FX indicates that the worst is possibly behind us
Back in early March, we talked about warning signals that the worst might be ahead. Now, if we can still rely on these signals, there is a sign of relief in the markets.
GBPUSD has already added more than four figures to 1.1840 from 1.1410 lows earlier today.
EURGBP stepped down from the highs near 0.95, which were last seen at these levels in the worst days of the GFC. The pair does not stay above 0.91 despite the almost collapsed banking system or Brexit.
USDCNH dropped to 7.07 – to more normal levels after touched 7.20 on Thursday.
USDCAD had soared to 1.4667 on Thursday but has now slid back to 1.4220 by now (-3%).
Today, and perhaps in the next few days, we can see the markets recover. But then we should seriously question whether the world is the same, and if not, what has changed in it.
https://fxpro.news/daily-forex-outlook/fx-indicates-that-the-worst-is-possibly-behind-us-20200320/
Back in early March, we talked about warning signals that the worst might be ahead. Now, if we can still rely on these signals, there is a sign of relief in the markets.
GBPUSD has already added more than four figures to 1.1840 from 1.1410 lows earlier today.
EURGBP stepped down from the highs near 0.95, which were last seen at these levels in the worst days of the GFC. The pair does not stay above 0.91 despite the almost collapsed banking system or Brexit.
USDCNH dropped to 7.07 – to more normal levels after touched 7.20 on Thursday.
USDCAD had soared to 1.4667 on Thursday but has now slid back to 1.4220 by now (-3%).
Today, and perhaps in the next few days, we can see the markets recover. But then we should seriously question whether the world is the same, and if not, what has changed in it.
https://fxpro.news/daily-forex-outlook/fx-indicates-that-the-worst-is-possibly-behind-us-20200320/
Stock markets show gains on Friday. However, it is yet based on expectations that central banks managed to contain the liquidity crisis. Without spreading coronavirus contagion, such bounces can be unstable. DJI is adding 0.9% after 0.4% growth the day before. FTSE100 added 1.0%, EuroStoxx50 strengthed by 3.3%.
The Federal Reserve further enhance the provision of liquidity via liquidity swap line arrangements with the world's largest central banks. The dollar index duplicated the peak of 2017 (103.81). Steadily above, DXY was 18 years ago. However, since the beginning of the day, the dollar has significantly lost ground.
Gold is trading at $ 1,500, selling off on attempts to rise above the 200-day average.
Brent briefly was at $32.5 earlier today, but dipped under $30 after reports that Russia called blackmail of Saudi Arabia.
Until a turning point occurs with the spread of the disease and increased quarantine, market bounces may be from the bargain-hunters, not long-term buyers.
The Federal Reserve further enhance the provision of liquidity via liquidity swap line arrangements with the world's largest central banks. The dollar index duplicated the peak of 2017 (103.81). Steadily above, DXY was 18 years ago. However, since the beginning of the day, the dollar has significantly lost ground.
Gold is trading at $ 1,500, selling off on attempts to rise above the 200-day average.
Brent briefly was at $32.5 earlier today, but dipped under $30 after reports that Russia called blackmail of Saudi Arabia.
Until a turning point occurs with the spread of the disease and increased quarantine, market bounces may be from the bargain-hunters, not long-term buyers.
The number of daily newly cases with new coronavirus infection continues to increase: an increase over the past day amounted to 32,433 cases against 12,940 a week earlier. The growth of this indicator deprives the markets of the foundation for growth, tuning in to strengthening quarantine measures and worsening economic prospects.
Positive: In Italy, over the past day, there has been a decrease in new cases of infection (5.5K against 6.5K) and deaths (651 against 793). However, it is necessary to wait for the confirmation of the trend in the following days.
Positive: In Italy, over the past day, there has been a decrease in new cases of infection (5.5K against 6.5K) and deaths (651 against 793). However, it is necessary to wait for the confirmation of the trend in the following days.
Coronavirus impact: markets in Europe increase whilst US still pressured
Futures on US indices were again close to the limit-down, but subsequently reduced the decline to 2.2%.
China, South Korea and Japan in containing the spread of the disease is much better than that of Europe. This makes the indices of this region perform better than European and American counterparts recently.
Weekend data from Europe evoke mixed feelings. Data from the Nordic countries we saw higher numbers of daily new cases. But in Italy, Spain, Germany we are witnessing some decline in it.
If this trend is confirmed, it will be possible to hope that from this point the situation will stop worsening.
The US data makes us look to the future with some fear feeling. On March 22, the number of new cases jumped to 9339, almost twice as high as levels in the previous two days.
https://fxpro.news/daily-forex-outlook/coronavirus-impact-markets-in-europe-increase-whilst-us-still-preassured-20200323/
Futures on US indices were again close to the limit-down, but subsequently reduced the decline to 2.2%.
China, South Korea and Japan in containing the spread of the disease is much better than that of Europe. This makes the indices of this region perform better than European and American counterparts recently.
Weekend data from Europe evoke mixed feelings. Data from the Nordic countries we saw higher numbers of daily new cases. But in Italy, Spain, Germany we are witnessing some decline in it.
If this trend is confirmed, it will be possible to hope that from this point the situation will stop worsening.
The US data makes us look to the future with some fear feeling. On March 22, the number of new cases jumped to 9339, almost twice as high as levels in the previous two days.
https://fxpro.news/daily-forex-outlook/coronavirus-impact-markets-in-europe-increase-whilst-us-still-preassured-20200323/
The crypto-miracle didn’t happen as assets drop together
The Bitcoin’s attempts to reverse the trend encountered resistance near $6,800.
Bitcoin was sold out when overall market fears peaked. But after a crushing decline, Bitcoin was expected to be counterbalance to what is happening in traditional markets. And now we are witnessing stocks and oil falling again, followed by Bitcoin.
A crypto-miracle did not happen.
https://fxpro.news/analysis-and-insight/the-crypto-miracle-didnt-happen-as-assets-drop-together-20200323/
The Bitcoin’s attempts to reverse the trend encountered resistance near $6,800.
Bitcoin was sold out when overall market fears peaked. But after a crushing decline, Bitcoin was expected to be counterbalance to what is happening in traditional markets. And now we are witnessing stocks and oil falling again, followed by Bitcoin.
A crypto-miracle did not happen.
https://fxpro.news/analysis-and-insight/the-crypto-miracle-didnt-happen-as-assets-drop-together-20200323/
#WaveAnalysis
#Gold reversed from support area
Likely to rise to 1550.00
https://fxpro.news/market-snapshots/gold-wave-analysis-23-march-2019-20200323/
#Gold reversed from support area
Likely to rise to 1550.00
https://fxpro.news/market-snapshots/gold-wave-analysis-23-march-2019-20200323/
#WaveAnalysis
#EURJPY reversed from support area
Likely to rise to 120.00
https://fxpro.news/market-snapshots/eurjpy-wave-analysis-23-march-2019-20200323/
#EURJPY reversed from support area
Likely to rise to 120.00
https://fxpro.news/market-snapshots/eurjpy-wave-analysis-23-march-2019-20200323/
On the news from the US, American indices rush from growth to decline. Last minutes, SPX returned to negative territory amid a slipping stimulus package in the US Congress. SPX -1.6%, to lows since the end of 2016. The FTSE100 lost 3.5%, the EuroStoxx50 down 2.0%.
The Fed lifted QE restrictions on government bonds and mortgage-backed agencies, launched a $ 300 billion corporate bond repurchase program. DXY has been peaking for the second day from highs since 2017. EURUSD is trying to catch on levels above 1.08. USDNOK has been losing 5% since the beginning of the day, but has not yet managed to block Friday's losses.
News of the Fed's new incentives supported Gold, which rose to $ 1,530.
Brent near 17-year lows at $ 27.8. The pressure was reinforced by news that Texas companies refused to participate in OPEC-agreed production cuts.
The global tipping point with the spread of coronavirus has not yet arrived. Despite signs of a slowdown in selected European countries, distribution is increasing in the US.
The Fed lifted QE restrictions on government bonds and mortgage-backed agencies, launched a $ 300 billion corporate bond repurchase program. DXY has been peaking for the second day from highs since 2017. EURUSD is trying to catch on levels above 1.08. USDNOK has been losing 5% since the beginning of the day, but has not yet managed to block Friday's losses.
News of the Fed's new incentives supported Gold, which rose to $ 1,530.
Brent near 17-year lows at $ 27.8. The pressure was reinforced by news that Texas companies refused to participate in OPEC-agreed production cuts.
The global tipping point with the spread of coronavirus has not yet arrived. Despite signs of a slowdown in selected European countries, distribution is increasing in the US.
Which instrument do you see as the most interesting to trade this week?
Anonymous Poll
30%
EURUSD
47%
Gold
15%
Crude Oil
8%
Stocks and Indices
The number of new cases of infection with a new coronavirus continues to rise: the jump over the past day amounted to 41,371 cases against 15,748 a week earlier. The growth of this indicator casts doubt on the strength of the market rebound, tuning to strengthening quarantine measures and worsening economic prospects. Positively, decrease in Italy the number of new infections (4.8K versus 5.6K) and deaths (601 versus 651) for two days in a row. Negatively, was the broader outbreak in the USA, Spain and Germany, with +10K, +6.4K and +4.2K, new cases respectively.
Bitcoin price spiked 9% in the last 24 hours to levels near $6,500. The bulls are trying to push the cryptocurrency above $7K. Passing this level may open doors for further growth and pulled up the whole altcoin market. TOP-10 coins are growing by 3-9%. However, the prices remain far from being able to offset the market crash. The Crypto Fear & Greed Index has grown by several points since yesterday, but so far remains in the zone of "extreme fear".
No one wants to buy back the "dead cat bounce", but consistent attempts to get back to growth will increasingly convince market participants that they can return to at least the levels before the collapse. At the moment, futures on major U.S. indices are showing growth, which coincides with the benchmark cryptocurrency direction. Besides, if a reversal of the crypto market coincides with similar events on the stock market, this will be another confirmation of the growing influence of institutional investors on the crypto market.
No one wants to buy back the "dead cat bounce", but consistent attempts to get back to growth will increasingly convince market participants that they can return to at least the levels before the collapse. At the moment, futures on major U.S. indices are showing growth, which coincides with the benchmark cryptocurrency direction. Besides, if a reversal of the crypto market coincides with similar events on the stock market, this will be another confirmation of the growing influence of institutional investors on the crypto market.