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Market Outlook
ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

ZFX: Confidence restore? Dow make a history again

25-03-2020 04:56

Review:

On Tuesday (March 24), investors began to return back to the stock market after digesting the news of unlimited QE. With the hope that the Republican and Democratic parties will agree on the $2 trillion stimulus plan, the three major Wall Street indexes skyrocketed. The Dow rose more than 2000 points, up 11.4%, the biggest one-day percentage gain since 1933.

The gold market continues to surge, no matter gold, silver, palladium, and platinum. Under the factor of "printing money", gold price has reached above $1600 level.

On Tuesday, U.S. House of Representatives Pelosi said that the U.S. Congress will soon pass the economic stimulus package, in addition U.S. President Trump said that he considers to release the controlling measures as soon as possible, hoping that the economy can be resumed by the mid of April. Besides unlimited QE, those news are very positive to the market.

Nonetheless, the global pandemic has no good news. The new coronavirus continues to ravage the world, with the number of diagnoses worldwide increasing sharply. At present, more than 400000 people have been infected and caused at least 18000 death. Many countries around the world have implemented states of emergency, restricting or prohibiting people activities.

The current market sentiment is improving as probably investors may have expected the worst scenario already. Investors may proactively reallocate the money back to the risky assets. It is likely that the market may simply ignore the “downside” at the moment. However, if the epidemic situation is still serious in the coming weeks, the whole market can change rapidly and return to chaos.

Many analysts are also conservative, pointing out that this may only be a reaction to positive news in a very pessimistic environment, or a technical short covering, especially in history, some strong rebounds often appear in bear markets.

 

 

AUD/USD

 

ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

 

Market theme / sentiment: Positive in stock market makes AUD stronger.
 
Support levels: 0.5930; 0.5890 resistance levels: 0.6000; 0.6050


Recommendations: long 0.5930, target 0.5970, stop loss 0.5910.
(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: 495 pips

 

 

 

EUR/USD

 

ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

Market theme / sentiment:  Europe's situation has no big improvement, and the euro's gain is short-term.
  
Support levels: 1.0780; 1.0730 Resistance levels: 1.0850; 1.0930
  
Recommendations: 1.0900 short, target 1.0860, stop loss 1.0930. 1.0830 long, target 1.0860, stop loss 1.0810.
(It is recommended not to consider the bid-ask spread
factor)

 
Position follow-up and profit and loss: 1.0780 has been shorted with a stop loss at 1.0810.
(Stop Loss) (It is recommended not to consider the
bid-ask spread factor)

 
Cumulative profit and loss: 415 pips

 

  

 

 

GBP/USD

 

ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

Market theme / sentiment: The UK is actively handling the outbreak and the pound has stabilized.
 
Support levels: 1.1690; 1.1650 Resistance levels: 1.1800; 1.1880
 
Recommendations: 1.1700 long, target 1.1740, stop loss 1.1670.
(It is recommended not to consider the bid-ask spread factor)
 
Position follow-up and profit and loss: 1.1750 has been shorted, and the stop loss is 1.1780 before reaching the target 1.1700.
(Stop Loss) (It is recommended not to consider the bid-ask spread factor)
 
Cumulative profit and loss: 260 pips

 

 

 

  

GOLD

 ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

Market theme / sentiment: In addition to Fed policy, the gold market may be disturbed by other factors.
  
Support level: 1580; 1560 Resistance level: 1630; 1660
 
Suggestion: The spread is widen, wait and see.
(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

USOIL(美国原油)

  

ZFX: Confidence restore? Dow make a history again - Zeal Capital Market

Market theme / sentiment: The stock market surged, supporting oil prices.

Support levels: 25.00; 24.00 Resistance levels: 26.50; 27.50

Recommendation: No recommendation due to significant price differences in market prices.

Position follow-up and profit and loss: 23.8 short, target 23.2, stop loss 24.5. (Cancelled due to widen price differences in the market)

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.