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Market View

Covid-19 fears are back!

Wednesday, April 1, 2020 12:07 PM GMT

Coronavirus is spreading all over the US and the death toll surpassed 4.000 while the country has the highest number of infections globally. Trump, US President, changed his approach regarding the COVID-19 as he said “I want every American to be prepared for the hard days that lie ahead,” We're going to go through a very tough two weeks.". New statistical models estimate 100 to 200.000 deaths even if the citizens comply with the taken measures. Additionally, Secretary of Defense Mark Esper said on CBS as concerns National Guard enforcing citizens to stay at home “ Well that's, that would be an option for the governors. Again, the guard is active in all 50 states and territories.”

Naturally, this newsfeed affects the markets negatively. Most Asian indices ended lower with Nikkey dropping by 4.5%, KOSPI by 3.38%, ShanghaiI 50 by 0.27%. Even worse bias on EU markets as all major indices are falling to the downside. GER30, FRA40, and UK100 are dropping more than 3% while IBEX and FTSE MIB are losing 0.84% and 1.52% respectively. Reviewing the technical picture, GER30 has tested 3 times 10000 level from below and failed to break it out. It's consolidating among the 9500 to 10k area. There is major resistance at 9180. FR40 opened with a gap and is moving within a declining channel. 

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GER30 hourly chart

FR40 hourly chart

Heading to the forex market, EURUSD lost all yesterday’s gains and it's back to the recent low 1.096. GBPUSD violated the short-term falling channel to the upside and is trying to verify the current level. USDCAD is testing the 61.8% as resistance on the hourly chart.

EURUSD hourly chart

GBPUSD hourly chart

USDCAD hourly chart

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

Today’s economic calendar includes the following news:

UnitedStates - ADP Employment Change (Mar)
UnitedStates - ISM Manufacturing Employment Index (Mar)
UnitedStates - ISM Manufacturing PMI (Mar)

 

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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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