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Market View

Good day for Stocks and USoil

Friday, March 20, 2020 12:01 PM GMT

The green color is all over Traders’ screens today as most stock markets opened or closed with significant profits. Plenty of positive news is helping the fragile market psychology to trim the big losses experienced during this week.

Starting from Asia, China announced that it will keep its 1-year loan prime rate unchanged at 4,05% while the 5-year remained at 4,75%. However, some analysts believe that China has to proceed to even more generous actions to support its economy. In the meantime, they announced there were 0 infections from Hubei but 39 new ones (imported). South Korea reported a smaller number than yesterday, 87 cases. As mentioned already, all indices closed with major profits.

Likewise, all EU indices are moving higher with decent gains as BOE announced a further decrease in its rate by 15bps, currently at 0.1% which is the smaller rate ever. Additionally, Boris Johnson, UK’s PM, gave some hopes citizens saying “We can turn the tide within the next 12 weeks and I’m absolutely confident that we can send coronavirus packing in this country but only if we take the steps”. Reviewing GER30’s chart, the price verified the positive divergence on RSI and MACD (mentioned yesterday).

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GER30 240m chart

US futures market indicates a positive opening for later today. Donald Trump, US president, said that he may intervene in the oil price war between Saudi Arabia and Russia, though, low oil prices are good for the consumers. This gave a further boost to USOil and records profits for 2 consecutive days. It is currently testing important resistance at 27.3.

USOil 240m chart

California’s Gov. Gavin Newsom ordered its citizens to “Stay at Home” as the death toll reach new highs, 156. This makes US dollar weaker vs its counterparts and EURUSD, GBPUSD, AUDUSD, NZDUSD were recording major profits however most of them have lost their momentum. Aussie is testing the 38.2% Fibonacci level and cable confirmed the positive divergences by RSI and MACD.

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AUDUSD 240m chart

GBPUSD 60m chart

Checking the ZuluTrade’s Traders Sentiment, the community is buying USDCHF and USDCAD while is selling GBPJPY.

 Today’s economic calendar includes the following news:

Canada - Retail Sales (MoM) (Jan)

 

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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