FXPRIMUS Weekly is your comprehensive technical and fundamental trading guide for the coming week! Access the latest news and in-depth technical indicator data, delivered by our market experts each and every week!
With a new week comes new market opportunities. Here’s a recap of what you may have missed, as well as some highlights of the week ahead of us:
Catching you up on last week:
- Carnage across asset classes — we saw the worst trading day for EU equities to date, U.S. futures halted after hitting their down limit on two separate days, and Thursday’s falls surpassed those of the 2008 crisis. Oil tanked 30% Monday, with volatility spreading to forex. Bitcoin lost ~60% of its value from the previous week’s high
- BoE cut rates to 0.25% and the UK government is preparing a stimulus programme that will boost its spending in infrastructure through to 2025, for a value equal to 25% of its current GDP. The ECB disappointed, not cutting deposit facility as expected.
- Trump has placed a 30-day travel ban on Europe, and music, business and sporting events have been cancelled or delayed (from the Champions League to F1, as well as talk of postponing the Japan Olympic Games).
- The prospect of a Fed rate cut, adding to the measures already taken to try to sustain the markets. Both the Swiss National Bank and Peoples Bank of China will communicate their decisions as well.
- Attempting to stabilize the financial markets has been brutal and at some point, we may see a rebound (dead cat bounce). However, volatility is expected to continue this week
- A lot of economic data is expected, however, in this climate they may have a short-term impact if any.
Let’s take a closer look…
Each week, we take a closer look at the markets that move, and those you may have missed!
SPX500 has entered a bear market, defined as a fall of at least 20% from its highs, ending the longest bull market on record (11 years). Let’s focus on the short-term with this 1-hour chart. As both RSI (above 50) and MACD look useful, we could aim for a bounce to 2680 and later, the possibility of reaching the 2825 area.
In this week, USD strengthened against many currencies, including the Euro. The pair has retraced from 1.15 testing the broken down channel. From current levels (1.1160) we could not discard a new test around the 1.1060, and even 1.10, area, but the overall picture we have is of a USD that could lose some momentum.
NATGAS has broken its downtrend and is one of the best-performing markets over the past month. Watch the 1.77-1.97 range, don’t ignore a break to the downside, but if we can see the price above 2.02, that could signal good news.
The best-performing asset this year, VIX is up almost 350% YTD. We offer the first tradable future, right now trading around 56.23. If there is a rebound in risk, this could go down to test the trendline you see in the chart. Be wary of the expiration dates.
Save The Date(s)
Here are the reports, meetings and other fundamentals to follow this week
|17 March 2020||10:00||ZEW Economic Sentiment||EUR|
|19 March 2020||08:30||SNB Rate Decision||CHF|
|20 March 2020||01:30||PBoC Rate Decision||CNY|
*The above times are in GMT
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