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Market Outlook
ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

ZFX: Wall Street technically bearish? Market conditions still disturbing

12-03-2020 04:31

Review:

On Wednesday (March 11), the market remained uncertain, the three major Wall Street indexes plunged sharply, which the Dow fell by 5.86%, more than 1,400 points, erased all Tuesday's gains. The WHO officially announced the new coronavirus (COVID-19) as a "global pandemic", once again hit the market sentiment. Also, there has no further details about the Trump’s policies, triggering market disturbing.

ZFX analyst Jacob Leung said, it is generally expected that the market is volatile and unstable, as investor confidence is very weak.

The pneumonia epidemic of the new coronavirus has raged in more than 100 countries around the world. More than 120,000 people have infected and it has caused unmeasurable economic losses. Besides China, Italy, Iran and South Korea have severe epidemics. As the US epidemic begins to spread over, more measures are expected to be announced, investors worry that this could further freeze global economic activity.

However, even if the global stock market plunged again, gold price failed to perform its safe-haven role, and once fell below the $ 1,640 mark, which is puzzling.

ZFX analyst Jacob Leung commented that the market is waiting for the policies of the Trump government. Generally speaking, the fiscal policies coming may push up the bond yield, which is not good for the gold market. Although dominated by the risk aversion on Wednesday, the benchmark 10-year U.S. Treasury yield rebounded from 0.66% to nearly 0.9%.

The current market conditions continue to be disturbing. Now, investors or traders in general may still be skeptical about stimulus plans from Trump. The US stock market, which has always been strong, together with the global economic recession, also has a high chance to fall into a bear market, that is, to fall by more than 20% from a high level. ZFX analyst Jacob Leung said that the current situation is extremely uncertain, and investors can only prepare for the worst, to manage risks or to wait.

Strategically, the volatility is too high. That means there is a certain degree of short-term operation opportunities, but it also come with the degree of risk. It is recommended to maintain conservative approach.

AUD / USD

 

ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

Market theme / sentiment: The Australian dollar continues to be suppressed by the general environment, and the RBA is expected to cut interest rates again.

Support levels: 0.6450; 0.6400 Resistance levels: 0.6480; 0.6500

Recommendation: 0.6480 short, target 0.6460, stop loss 0.6510. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 0.6530 has been shorted, with a target of 0.6500. (TP) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 390 pips

 

 

 

 

 

EUR / USD

 

ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

 

Market theme / sentiment: The Euro awaits the ECB's decision and enters the range fluctuating.

Support levels: 1.1290; 1.1250 Resistance levels: 1.1330; 1.1360

Recommendation: 1.1315 short, target 1.1290, stop loss 1.1330. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.1340 has been shorted, and the stop loss is 1.1355 before reaching the target 1.1315. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 350 pips

 

 

 

GBP / USD

 

ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

 

Market theme / sentiment: The Bank of England suddenly cut interest rates, and the British pound fluctuated.

Support levels: 1.2800; 1.2750 Resistance levels: 1.2860; 1.2910

Recommendation: short 1.2870, target 1.2830, stop loss 1.2910. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1.2960 has been shorted, with a target of 1.2930. (TP) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: 340 pips

 

 

GOLD

ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

Market theme / sentiment: Gold price is starting to lose support from market sentiment.

Support levels: 1627; 1615; resistance levels: 1645; 1656

Recommendations: short 1636 and 1644, target 1628, stop loss 1650. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 1649 has been shorted, hitting target 1635. (TP) 1660 has been shorted, the stop loss is 1666 before reaching the target 1654. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: -130 USD

USOIL (US crude oil)

ZFX: Wall Street technically bearish? Market conditions still disturbing - Zeal Capital Market

Market theme / sentiment: The global epidemic has further deteriorated, and oil prices have fallen to low levels.

Support levels: 31.00; 30.00 Resistance levels: 32.00; 33.50

Recommendation: 31.4 long, target 31.9, stop loss 30.8. (It is recommended not to consider the bid-ask spread factor)

Position follow-up and profit and loss: 35 has been long and the stop loss is 34.5. (Stop Loss) (It is recommended not to consider the bid-ask spread factor)

Cumulative profit and loss: $ 8.6

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.