Apr 21 2020 0
Of course the biggest news today is that oil prices have gone negative for the first time in history. How are the currency pairs reacting to this. Well, check out our chart analysis and find out what is the most suitable forex trading strategy.
Latest updates
- Due to a short-term oversupply, the oil market continues to collapse! Oil prices have fallen to ... nearly negative $40. This is a day that history will not forget.
- New data show that the Swiss National Bank is still intervening in the currency market to cool down the rise of the CHF and protect Swiss exporters, but the pace of intervention has decreased.
- In the face of protests in many parts of the world, the German Prime Minister issued a warning on April 20.
- Spain's central bank warns that its economy may shrink to 12.4% in 2020.
- European Union Economic Commissioner Cameron Gentiloni said a bailout of EUR 1.5 trillion (US $1.63 trillion) may be needed to address the coronavirus crisis.
- The ECB is discussing the creation of a "Bad Bank" that aims to move the worst assets on the balance sheet in there to make more room for new loans when the crisis is over. The European Commission has strongly opposed this proposal.
- China intends to turn Caofeidian district, located at the edge of its leading steelmaking city, into a commodity trade center in Northeast Asia by early 2025, turning the northwestern provinces of China and Mongolia. into an important shipping center, with a target of trading turnover of 7.07 billion USD by 2022.
USD/JPY
With USD/JPY, the chances of increasing are lower and lower. Anyone with a previous long order should consider exiting or moving a Stop Loss to an Entry Point to reduce risk. Bottom 107 has been tested twice before, and if the price returns again it is likely it will not hold. Note not transactions at this time. Wait for clearer signals.
EUR/USD
The price on EUR/USD chart has not changed much, still below the MA20. Continue to keep the old view: if you have entered the exploration command, you can continue to keep. Pay attention to the 1.078 zone. If it is broken, open more positions and target the bottom of 1.06.
GBP/USD
After making a noticeable signal on the weekly chart, GBP/USD is accumulating. There is no breakthrough yet. However, the continuous checking of 1.240 bottoms has increased the likelihood of breakdown. Keep holding sell orders and add positions when this support is broken. The short term target is still 1.22.
USD/CAD
With USD/CAD, prices have started to follow the trajectory. There is not much to say about this pair. Maintain medium-term ‘long’ positions.
AUD/USD
AUD/USD has also started to decline as expected. The target is still the 0.62 zone. Notice when the price approaches this zone, we need to consider the signals to decide whether to return to the previous uptrend. Do not place any pending orders!
