Fed starts unlimited easing, gold soars

[Focus on today] Tuesday, March 24, 2020

 

① To be determined video conference of G7 foreign ministers

② 16:15 French March manufacturing PMI preliminary value

③ 16:30 German March manufacturing PMI preliminary value

④ 17:00 March PMI preliminary value

⑤ 17:30 UK March Manufacturing and Services PMI

⑥ 17:30 Bank of England announces financial policy decision

9:00 19:00 UK March CBI industrial order difference

⑧ 21:45 U.S. Markit Manufacturing PMI preliminary value in March

⑨ 21:45 U.S. March Markit service industry preliminary PMI

⑩ 22:00 U.S. February new home sales total annualized

⑪ 22:00 U.S. March Richmond Fed Manufacturing Index

⑫ 04:30 API crude oil inventories for the week of the United States to March 20

Fundamentals:

 

[Fed offers unlimited QE] On Monday evening, the Fed announced a series of new plans to help the market, including unlimited bond purchases to keep borrowing costs low, and plans to ensure credit flows to businesses and state and local governments. The Federal Reserve announced that it will purchase $ 75 billion in national debt and $ 50 billion in institutional home mortgage-backed securities (MBS) every day this week, and that daily and regular repo rates will be reset to 0%.

 

[Trump Holds White House Press Conference on New Crown Virus] US President Trump said that the United States can resume work in less than 3-4 months. Congress should pass a Senate stimulus bill, and the Senate needs to stop proposing Republican policies.

 

[U.S. Senate’s Third Round of Emergency Economic Relief Program Still Votes Again]

 

[Fed survey: US companies are generally expected to be hit hard by the epidemic]

A survey released by the Federal Reserve Bank of Atlanta on Monday showed that U.S. businesses expect the coronavirus pandemic to have a “very huge negative impact” and work to reduce its spread.

 

[U.S. Secretary of Energy says establishing US-Saudi oil alliance is one of the options discussed]

U.S. Energy Secretary Dan Brouillette said that one of the measures considered in order to stabilize prices after the sharpest collapse in oil prices in two or three decades was to form an alliance with Saudi Arabia. Many ideas have been proposed in the policy area and this is one of them. The U.S. Department of Energy confirmed that Coates will be sent to Saudi Arabia to help stabilize the oil market. Due to the new crown pneumonia epidemic, it is unclear when Coates will begin work in Saudi Arabia.

Technical side:

XAUUSD:

(Golden 1H chart)

From the golden daily line, it closed with strong bullish candlestick. The rising momentum is strong, the 1-hour chart breaks through the rising channel, and you can still long on the track.

Pressure level: 1600

Support level: 1545

Operation strategy: long near 1549, target 1590, stop loss 1544

EURUSD:

(EURUSD 1H chart)

Judging from the 1-hour chart of the euro against the US dollar , the market broke through the downtrend line and rebounded, and the bottom continued to rise.  We can long when it pulls back to trend line

Pressure level: 1.09

Support level: 1.0755

Operation strategy: long near 1.0755, target 1.09, stop loss 1.0710

GBPUSD:

(GBPUSD 1H chart)

Looking at the 1-hour chart of GBP against USD, the market broke the downtrend line and entered a rebound mode. We can long when it pulls back to the box

Pressure level: 1.1700

Support level: 1.1560

Operation strategy: long near 1.1565, target 1.1700, stop loss 1.1515

USDJPY:

(USDJPY 1H chart)

From the USD / JPY daily line, it came up the pattern of the triple top in the 1-hour chart. The MACD top diverges, the probability of a callback is greater, and keep selling high.

Pressure level: 111.10

Support level: 108.50

Operating strategy: short at 111.10, target 108.10, stop loss 111.70

USOIL:

(USOIL 1H chart)

Looking at the US crude oil daily line, the bottom line closed the hammer pattern. MACD diverged at the end of 4 hours, we can long if it stepped back on the center in 1-hour chart. In the short term, we see the counter pressure point of the downward trend line.

Pressure level: 26.1

Support level: 23.3

Operation strategy: long near 23.4, target 26, stop loss 22.9

*************** Notes for trading **************

1. Follow the trend and keep in mind of risk control

2. Entry can be added or minused by 5 pips, exit can be added or minused by 5 points

3. It is recommended to take half of the profit after 50 pips of profit, and the rest position with stop loss of entry.

4. Orders that arrive at the entry point before 12 pm are valid, and subsequent orders are invalid. (Unless specified)

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(The above personal strategy is written based on the objective and independent principles. It is for reference only and does not represent any direct operational advice to investors. Investors will be responsible for the profits and losses of the market.

 

MYFXSchool Analyst: Michael

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