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Market Outlook
ZFX: Bullish news again! Market sentiment was lifted - ZFX

ZFX: Bullish news again! Market sentiment was lifted

09-04-2020 04:01

Review:

On Wednesday (April 8), market sentiment was lifted again due to the supportive news. Investors become active to move back into risky assets. Wall Street ’s three major indexes rose, of which the Dow and S&P 500 rose more than 3%.

The overall market trend is choppy, mostly dominated by the sentiment. The White House health advisor Fauci said on Wednesday that the US coronavirus outbreak situation should be improved next week, and President Trump also pointed out that the reopen of US economy will only be faster. Also, the announcement of Sanders ’withdrawal eliminated some uncertainties. All those news turned the market to be more bullish.

The Fed released the FOMC meeting minutes last night, showing that the new coronavirus outbreak has sharply deteriorated the economic outlook. Most of the members agreed to maintain interest rates at the current level for a period of time until they can see the economic recovery, achieving the goals of full employment and price stability.

ZFX analyst Jacob Leung said that this means the Fed will not make big changes to the monetary policy during the year, until getting rid of the impact of the coronavirus pandemic, which maintains optimism.

In addition, before the OPEC+ Thursday’s meeting, Russia was reported to be willing to cooperate with production cuts, preparing to lower daily output by 1.6 million barrels, which is about 14% of Russian output. The market immediately expected that the world's major oil-producers would soon reach an agreement of the production cuts. Oil prices soared, which the WTI crude futures closed higher over 6%.

ZFX analyst Jacob Leung said that in fact, it is still doubtful regarding the production cuts agreement as the prerequisites was still the participation of all major oil-producers, especially the US. Furthermore, whether the cuts are sizeable enough to stabilize the oil market is debatable, as now the market is predicting the global daily demand may have decreased by more than 20 million barrels.

According to the latest news, more than 1.5 million cases have been confirmed in more than 200 countries around the world, and more than 87000 people have died. ZFX analyst Jacob Leung said that the number is now expected to rise to 2 million next week. Although the situation is severe,  the market still “prefers” to believe that the peak has passed, which investors should be cautious.

 

 

AUD/USD

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment: The market becomes optimistic again, Aussie is breakthrough again.

Support: 0.6200; 0.6170  Resistance: 0.6250; 0.6300

Recommendation: 0.6170 short, target 0.6130, stop loss 0.6200. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 0.6100 long, target 0.6130, stop loss 0.6070. (Cancelled) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 555 pips

 

EUR/USD

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment: The EU failed to reach consensus on the bailout agreement, and the Euro is consolidating.

Support: 1.0840; 1.0800   Resistance: 1.0890; 1.0930

Recommendation: Go short 1.0820, target 1.0800, stop loss 1.0850. Go long 1.0900, target 1.0930, stop loss 1.0870. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.0860 go long, hit the target 1.0880. (Take Profit) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 370 pips

  

 

GBP/USD

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment: Pound was dragged down by EU news, but the British Prime Minister's condition improved, and the pound rose again.

Support: 1.2350; 1.2290 Resistance: 1.2410; 1.2450

Recommendation: 1.2340 short, target 1.2300, stop loss 1.2370. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.2330 has been long, stop loss at 1.2290 before reaching target. (Stop Loss) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 290 pips

 

 

GOLD

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment: Gold price unexpectedly fell into narrow ranging, ignoring the market news.

Support: 1640; 1630  resistance: 1660; 1670

Recommendation: Go long in 1658, target 1666, stop 1651. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1639 short, target 1631, stop loss 1644. (Pending) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: -62 USD

USOIL(美国原油)

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment: Production cut agreement may have progress and oil prices have skyrocketed.

Support: 28.50; 27.50 Resistance: 30.00; 31.00

Recommendation: At present, big difference in OTC quotes and no recommendations are made.

Position follow-up and profit and loss: —

Cumulative profit and loss: $ 9.8

US30(道指)

ZFX: Bullish news again! Market sentiment was lifted - ZFX

Market theme / sentiment:  Bullish news stimulates US stocks to test resistance.

Support: 23100; 22900   Resistance: 23500; 24600

Recommendation: go long at 23000, target 23150, stop loss 22900. (Pay attention to the OTC quote differences)  (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: —

Cumulative profit and loss: —

Risk Warning: The above content is for reference only and does not represent ZFX's position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.