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Market Outlook
ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

ZFX: Failing to calm coronavirus fears, cash out!

17-03-2020 04:51

Review:

On Monday (March 16), the financial market was still panic. Global stock markets have dropped sharply like disaster. The Dow plunged near 3000 points, the biggest drop since 1987. Even though the Federal Reserve announced another emergency rate cut to zero, together with the $700 billion quantitative easing (QE), the three major Wall Street indexes plunged over 10%, triggering the fourth market halt in history. The S&P 500 index fell by about 12%. The Dow fell 2997 points, nearly triggering the second market halt in one day (if drop more than 13%).

ZFX analyst Jacob Leung said, as mentioned earlier, the more and more emergency measures, the more and more panic in market. If the global epidemic cannot be controlled, more "Black Monday" are just likely.

Last night, US President Trump said that the U.S. epidemic could last until July or August, and warned that the U.S. might go into economic recession due to the epidemic, and market confidence collapsed again.

At present, this is undoubtedly a market chaos. Investors or professional investors, traders and funds etc. all want to liquidize the position and “cash out”as soon as possible in all market. A rapid sell-off caused an obvious deleveraging situation.

In the morning Asian session today, some positive news helped the market to bounce back slightly. Trump said that the first phase of clinical trials of the new coronavirus vaccine has begun, saying that it is the fastest vaccine development in history. He said earlier studies showed that the vaccine could help reduce symptoms and speed up cures. Also, he said that the government would control the outbreak at any cost.

In addition, leaders of G7 also held emergency video conferences for the global pandemic issue, like vaccine development, follow-up action of preventive measures, and relevant policies in financial markets. G7 stated that "all necessary measures” will be taken to deal with the global pandemic after the conference, including fiscal stimulus and vaccine development.

ZFX analyst Jacob Leung said that it is important to note that, in markets where uncertainty remains extremely high, any positive news will only be effective in short term.

 

AUD/USD

 

ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

Market theme / sentiment: The market sentiment is poor and the Australian dollar is weak.

Support levels: 0.6100; 0.6080 Resistance levels: 0.6150; 0.6180

Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 0.6100 has been long, with a target of 0.6150. (TP) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 395 pips

 

EUR/USD

 

ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

Market theme / sentiment: The euro has entered a large-scale consolidation pattern.

Support level: 1.1150; 1.1100 Resistance level: 1.1200; 1.1230

Recommendations: 1.1200 short, target 1.1180, stop loss 1.1230. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.1150 has been shorted, and the stop loss is 1.1180 before reaching the target. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 385 pips

 

 

 

GBP/USD

 

ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

Market theme / sentiment: The UK ’s epidemic prevention measures have been greatly questioned, GBP keep declining.

Support levels: 1.2200; 1.2150 Resistance levels: 1.2280; 1.2350

Recommendation: wait and see. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.2360 has been long, and the stop loss is at 1.2320. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 330 pips

 

GOLD

 

ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

Market theme / sentiment: Risk aversion is no longer a bullish factor for the gold market.

Support levels: 1485; 1465; resistance levels: 1508; 1515

Recommendation: short 1502, target 1495, stop loss 1508. (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: -121 USD

USOIL(美国原油)

 

ZFX: Failing to calm coronavirus fears, cash out! - Zeal Capital Market

Market theme / sentiment: Good news helped oil price rebounded at a low level.

Support: 29.70; 29.00 Resistance: 30.50; 30.80

Recommendations: 31 long, target 31.8, stop loss 30.3. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 32 shorts, target 31.5, stop loss 32.3. (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.