Mar 10 2020 0
Hi, it’s me. Mar10! Just kidding. It’s March 10th. I thought that we can use a little laughter on tough days like these due to the outbreak. Anyway, we will continue to analyze the charts of the most common pairs today and see what forex trading strategies we should apply.
Although there are no more shocks like the first session of the week, the volatility is still high, you should note to reduce the volume and use the Stop Loss a bit far if trading this time.
Latest updates:
- JPY surged against the US dollar at the beginning of the week when the stock market sank into the red sea amid falling oil prices. Zach Pandl, Goldman Sachs' director of foreign exchange and emerging markets strategy, told Bloomberg TV last week that the JPY could rise to 95 if the global market remains chaotic in the next few months.
- Bank of Japan Governor Haruhiko Kuroda said on Monday that they were ready to "act without hesitation". However, he did not give any direct suggestion, saying only that BoJ will continue to use its existing operations and asset purchase programs to pump liquidity and stabilize the market.
- At the beginning of the week, the UK stock market saw the sharpest decline since 2008 and for the first time the bond interest rate turned to negative when there was concern about the risk of coronavirus rising. Prime Minister Boris Johnson chaired an emergency meeting, which looked at stringent measures to prevent the disease.
- Losing about 25% of its value, oil prices have set the biggest decline since the first Gulf War. The reason is that Saudi Arabia has reduced the official price and planned to increase crude oil production. next month after Russia rejected the proposal to reduce production to prevent a decline in oil prices.
USD/JPY
The price reacted quite well to the noted support zone 101. For now, if anyone is long, they can continue to hold orders in the short term. The goal will be when the gap is filled. Note, if following the medium-term downtrend is not short sale at this time because the RR is not good and the ability to adjust is very high.
EUR/USD
The price cannot overcome resistance 1.15. It is in the overbought state, and the bearish signal has also appeared, so you may want to consider short-term. The target is zone 1.13. Anyone who is trading in an upward trend just formed a few weeks ago should not be impatient. Further price action needs to be observed at this time.
GBP/USD
As noted, the gap fills before recovering, so we don't have a short order and also avoid a stop-out. Today things were clearer: the sellers were stronger and the bearish signal appeared. Can consider short-term short-term orders, but the beautiful entry was missed. We may need to wait for a slight bounce to the top before entering the order. The target will be range 1.295 - 1.30.
USD/CAD
The price turned down sharply at the zone of 1.377 and created a bearish signal. Short-term short-term orders yesterday can also stop to take profit when the 1.35 zone is tested. Today's session continues to hold the bearish view for this pair. The goal is when the gap is filled.
AUD/USD
A rising signal appeared but the momentum did not sustain for long. Sellers quickly overwhelmed again. AU /USD is relatively risky at the moment. Consider avoiding this pair.
