ZFX: Effects fade away! Sentiment took a hit
On Friday (March 27), risk appetite in the financial market has changed. After three days strong move, the three major Wall Street indexes all fell, of which the Dow fell more than 4%. However, throughout the week, the Dow rose 12.8%, the biggest weekly gain since 1938.
Even though the US House of Representatives passed the $2 trillion economic stimulus plan, it failed to further support the market sentiment.
ZFX analyst Jacob Leung said that recently the United States and the world have launched a series of monetary and fiscal policies to restore the market confidence. However, investors still need to back to the reality. It is expected that the financial market is still in a turbulent stage.
Fed Chairman Powell said " Not Going to Run Out of Ammunition" has once boosted market confidence. But, last Friday the Fed released news that it would start to slow down the purchase of U.S. Treasury bonds this week, and the market was worried about liquidity issues again.
There is still no sign of improvement in the global new coronavirus epidemic, with more than 720000 confirmed cases and more than 33000 deaths. Among them, the U.S epidemic situation was the worst, with a total of 140000 confirmed cases. President Trump decided to extend social epidemic prevention measures to the end of next month. The epidemic situation in Europe is also not optimistic. The British Prime Minister Boris Johnson has also been infected. The U.K said the lockdown measures may last for half year.
That means the global economy is still frozen at least in the coming few weeks. Both demand and supply are greatly impeded. It was announced last week that the initial jobless claims in the U.S reached 3.283 million, which far exceeded market expectations, reflecting the seriousness of the situation.
ZFX analyst Jacob Leung said that Nonfarm payroll is coming this week, investors would pay extra attention to that.
Market theme / sentiment: The US dollar is weak, and the Australian dollar continues to go higher.
Support level: 0.6120; 0.6090 Resistance level: 0.6170; 0.6200
Recommendation: 0.6090 to go long, target 0.6110, stop loss 0.6070. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: long 0.6000, target 0.6050, stop loss 0.5970. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 535 pips
Market theme / sentiment: The euro is mainly driven by the weak dollar.
Support levels: 1.1050; 1.1000 Resistance levels: 1.1130; 1.1150
Recommendation: 1.1025 long, target 1.1050, stop loss 1.1000. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.0950 long, target 1.0980, stop loss 1.0920. (Cancelled) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 365 pips
Market theme / sentiment: GBP's rally was not related to the fundamentals much.
Support level: 1.2300; 1.2200 Resistance level: 1.2400; 1.2450
Recommendations: 1.2390 short, target 1.2300, stop loss 1.2430. (It is recommended not to consider the bid-ask spread factor)
Position follow-up and profit and loss: 1.2300 has been shorted, with a target of 1.2200. (TP) (It is recommended not to consider the bid-ask spread factor)
Cumulative profit and loss: 330 pips
Market theme / Sentiment: The gold market has been relatively stable recently.
Support levels: 1610; 1600 resistance levels: 1625; 1635
Recommendation: spread keep widen, wait and see.
Position follow-up and profit and loss: —
Cumulative profit and loss: -70 USD
Market theme / sentiment: Energy market is extremely bleak and oil prices are falling.
Support: 21.50; 20.50 Resistance: 23.00; 24.00
Recommendation: Due to serious price difference in OTC quotes, no recommendations are made.
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.