Vaccine trial of COVID-19 dawns, stock market soars and gold falls out of favor

[Focus on today] Tuesday, May 19, 2020

 

① 09:30 RBA announces minutes of May monetary policy meeting

② 14:00 UK unemployment rate in April and the number of unemployment benefits applicants

③ 14:00 British ILO unemployment rate in March for three months

④ 17:00 German and Eurozone ZEW Economic Prosperity Index in May

⑤ 20:30 Annualized construction permits and new housing starts in the United States in April

⑥ 22:00 Chairman of the Federal Reserve and Treasury Secretary attended the hearing

⑦ 22:00 Fed Kashkari delivered a speech

⑧ 02:30 New York crude oil June futures completed the last trading on the floor

⑨ 04:30 API crude stocks in the United States to the week of May 15

Fundamentals:

 

[Powell said the Fed is committed to using all tools to deal with an unprecedented recession]

Fed Chairman Powell reiterated that the Fed is committed to using all tools to deal with an unprecedented recession, maintain market operations during the new crown epidemic and provide funds for those who need it. In a speech prepared for the Senate Banking Committee hearing on Tuesday, Powell outlined the Fed ’s plans during the outbreak.

 

[Bostik said the Fed may take action again to aid the economy]

Fed Bostic said that the employment data for May and June is expected to be “bad”, the second quarter will be very difficult, if necessary, the Fed will again act to assist the economy.

 

[Trump reports that he takes the antimalarial drug hydroxychloroquine ] Trump said he is currently taking the antimalarial drug hydroxychloroquine, which he vigorously promotes to treat new coronavirus. Trump said he had been taking the medicine for a week and a half, and the White House doctor said he could take it as he wanted.

 

[Lagarde said the European Central Bank will continue to implement quantitative easing]

European Central Bank President Lagarde said that although the German Supreme Court questioned the legitimacy of one of the European Central Bank’s debt purchase plans, the central bank will continue to implement the purchase plan.

 

[Six European Union countries simultaneously lift the ban on short selling]

During the extreme market turmoil in March, the European Union issued a ban on short-selling stocks. Today, the six EU countries of Austria, Belgium, France, Greece, Spain and Italy have all announced the lifting of the ban on short-selling stocks. The European Securities and Markets Authority (ESMA) said it has decided to lift the short-selling ban, which expires at 21:59 GMT on May 18th.

 

[Moderna vaccine early experiment results are “perfect”]

On May 18, the biotechnology company Moderna released the early data of the human crown experiment of the new crown vaccine mRNA-1273 on the official website. The 45 volunteers who participated in the Phase I test all produced antibodies, and at least 8 of them had produced neutralizing antibodies against the new coronavirus. At the same time, there were no major safety issues in the experiment.

Technical side:

XAUUSD:

(Golden 1H chart)

From the golden daily line, to close the shooting star, the 1-hour chart fell below the upward trend line, the bulls were suppressed, beware of the trend reversal, and if the backline is short.

Pressure level: 1753

Support: 1728

Operation strategy: shorting near 1753, target 1728, stop loss 1758

EURUSD:

(EURUSD Daily chart)

From the daily view of the euro against the dollar , the market is supported by the lower edge of the wedge, Changyang rises from the ground, and there is also an inertia that rushes upwards, stepping back and doing more.

Pressure level: 1.0950

Support level: 1.0865

Operation strategy: go long near 1.0865, target 1.0940, stop loss 1.0835

GBPUSD:

(GBPUSD 1H chart)

Judging from the 1-hour chart of GBPUSD, the market broke through the downtrend line to suppress and turned into a rebound mode, stepping back on the line to do more.

Pressure level: 1.2270

Support level: 1.2150

Operating strategy: Long near 1.2157, target 1.2257, stop 1.2117

USDCAD:

(USDCAD 1H chart)

Looking at the daily line of USD / CAD, Changyin fell sharply. On the 1-hour chart, the market formed resistance after falling below the box, and the bottom of the box was shorted.

Pressure level: 1.4020

Support level: 1.390

Operating strategy: shorting around 1.4015, target 1.3910, stop loss 1.4055

UKOIL:

(USOIL 1H chart)

From the daily oil line, the market rebounded to the down trend line, there are signs of stagflation, 1-hour chart, MACD dead fork, the recent increase is relatively large, there may be a callback, may wish to open a high short position.

Pressure level: 35.6

Support level: 34

Operation strategy: short at 35.6, target 34, stop 36

*************** 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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