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ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

ZFX: A trillion dollars! Boost the market sentiment

18-03-2020 04:26

Review:

On Tuesday (March 17), good news in the financial market is that Trump administration is considering launching a massive economic response package, which is reported to be over 1 trillion USD, to stabilize the economy. The three major Wall Street indexes all rose over 5%, which the Dow has again over 1000 points move.

ZFX analyst Jacob Leung said that even if investor confidence seemed to improve, but the stock market fluctuated extremely during the day, and the Dow once fell below the 20000, implied high uncertainty. US stock futures were already down in the Asian session on Wednesday.

At the White House press conference, the US Treasury Department announced that it would delay the filing of tax returns and even consider granting US $1000 to US citizens as a response to the impact of the current epidemic. In addition, the U.S. Federal Reserve further provides liquidity to the market by Emergency Lending Programs.

ZFX analyst Jacob Leung said obviously the global pandemic has not yet under control. Fiscal policies are generally more direct and effective, but it is likely to boost investor confidence in the short term only under such uncertain condition.

For the market trends, the gold market is dramatic. Gold price once again got big selling pressure and fell to a low of about $1465 but rebounded strongly. It rose to day high nearly $1554 within 5 hours. "Short covering" would be one of the reason behind. In the FX market, the dollar remained strong, and the dollar index rose to a high of 99.83. Under two major negative factors, oil prices got heavy hit. US oil (WTI) once fell below $27, the lowest since February 2016.

ZFX analyst Jacob Leung said that the strength of the dollar implied several things. Even if the Federal Reserve lowered the rate to zero and introduced liquidity measures, the dollar has not been weaken. It reflect the strong demand of dollar, liquidity tightening, deleveraging, position unwinding, capital flows to US, which all are the signs of risk aversion.

AUD / USD

ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

Market theme / sentiment: The strong US dollar and non-US currencies under pressure.

Support levels: 0.6000; 0.5970 Resistance levels: 0.6030; 0.6075

Recommendations: 0.6035 long, target 0.6070, stop loss 0.6000. (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: 395 pips

EUR / USD

ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

Market theme / sentiment: The US dollar is strong and the Euro is relatively stable.

Support levels: 1.1000; 1.0950 Resistance levels: 1.1060; 1.1090

Recommendation: 1.1060 short, target 1.1030, stop loss 1.1090. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.1200 short, target 1.1180, stop loss 1.1230. (Cancelled) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 385 pips

GBP / USD

ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

Market theme / sentiment: The dollar is strong, and the pound is down sharply.

Support level: 1.2100; 1.2000 Resistance level: 1.2180; 1.2250

Recommendations: 1.2140 long, target 1.2180, stop loss 1.2090. (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: 330 pips

GOLD

ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

Market theme / sentiment:  Short covering may be the reason for bounce back.

Support level: 1520; 1500 resistance level: 1540; 1555

Recommendation: short at 1517, target 1508, stop loss 1528. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1502 has been shorted, and the target is 1495. (TP)  (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: -114 USD

USOIL (US crude oil)

ZFX: A trillion dollars! Boost the market sentiment - Zeal Capital Market

Market theme / sentiment: The bearish factors are still valid, oil prices collapsed.

Support: 27.10; 26.60 Resistance: 28.00; 28.50

Suggestions: Go long with 27.2, target 27.8, and stop loss at 26.7. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 31 long, target 31.8, stop loss 30.3. (Cancelled) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: $ 9.9

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.