ZFX: Uncertainty! Wall Street fails to make meaningful move
On Tuesday (March 31), investor sentiment became cautious again. With the bullish news, the three major Wall Street indexes all fell, which the Dow lost more than 400 points, closed 1.84% lower.
It is reported that the US government are drafting a new economic stimulus plan to deal with the impact of the US economy hit by the epidemic. “Bloomberg” quoted information that White House officials have drawn up a list of about $600 billion in accordance with the needs of various government agencies, including providing more funding to state governments, supporting the mortgage market and tourism.
In addition, "Bloomberg" quoted sources as saying that the Trump administration may defer tariffs for most-favored nations for 3 months on some imported goods, and will be announced in the form of executive order as soon as this week, but it does not include Chinese goods and tariffs of steel and aluminum. However, the news has limited stimulus effect to the market sentiment.
On Tuesday, the important figures performed well. In Asian session, China announced that the manufacturing PMI in March was 52, and the non-manufacturing PMI was 52.3, both were better than expected. In US session, the Chicago PMI in March was 47.8, far better than the expected 40. Furthermore, the consumer confidence index of US in March was 120, far better than the expected 110. Again, the figures can only boost the market in a very short term.
The weak oil prices were supported by some good news on Tuesday. After the rebound in Asian and European session, oil prices lost momentum again.
ZFX analyst Jacob Leung said that investors seem to be quite cautious. The coronavirus pandemic is still highly uncertain to the market, and investors are more concerned about the employment situation in US this week, which has not yet been released.
The number of new confirmed cases of coronavirus continues to increase by “tens of thousands” worldwide, with the latest confirmed cases exceeding 850000 and more than 42000 deaths. President Trump has called for citizens to prepare for the next two crucial weeks. ZFX analyst Jacob Leung said that in the severe environment of the epidemic, it is difficult to expect a long lasting risk appetite in financial markets.
Market theme / sentiment: The market sentiment is mixed, and the Australian dollar's rally is showing resistance.
Support level: 0.6100; 0.6070 Resistance level: 0.6150; 0.6190
Recommendation: 0.6100 long, target 0.6130, stop loss 0.6070. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 0.6160 has been long, and the stop loss is at 0.6140. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 535 pips
Market theme / sentiment: The euro stabilized after the correction and is consolidating.
Support level: 1.1000; 1.0960 Resistance level: 1.1040; 1.1080
Suggestions: 1.0980 long, target 1.1010, stop loss 1.0950. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.1050 long, target 1.1070, stop loss 1.1030. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 390 pips
Market theme / sentiment: Sterling is under consolidation phase.
Support levels: 1.2300; 1.2270 Resistance levels: 1.2450; 1.2500
Recommendation: short 1.2400, target 1.2360, stop loss 1.2440. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.2360 has been shorted, with a target of 1.2300. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 350 pips
Market theme / sentiment: Gold price has breakthrough and may have further drop.
Support levels: 1575; 1565; resistance levels: 1590; 1605
Suggestion: The spread starts to be normal, short at 1590, target at 1580, stop loss at 1600. (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: -70 USD
Market theme / sentiment: oil prices rebounded, but concerns about crude oil demand keep bearish.
Support levels: 22.00; 21.50 Resistance levels: 23.00; 24.00
Recommendation: No recommendations are made due to further differences in OTC quotes.
Position follow-up and profit and loss: —
Cumulative profit and loss: $ 9.8
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.