U.S. stocks is stimulated by Fed’s full support for economy

[Focus on today] Thursday, May 21, 2020

 

① 15:15 Initial value of French manufacturing PMI in May

② 15:30 German manufacturing PMI initial value in May

③ 16:00 Eurozone manufacturing PMI initial value in May

④ 16:30 British manufacturing and service industry PMI in May

⑤ 18:00 UK CBI industrial order difference in May

⑥ 20:30 United States to May 16 the beginning of the week the number of unemployment claims

⑦ 20:30 United States May Philadelphia Federal Reserve Manufacturing Index

⑧ 21:45 United States Markit manufacturing PMI initial value in May

⑨ 21:45 Initial value of Markit service industry PMI in May

⑩ 22:00 Fed Williams delivered a speech

⑪ 22:00 Monthly rate of the leading index of the American Consultative Conference in April

⑫ 22:00 Annualized total sales of existing homes in April in the United States

⑬ 22:30 EIA natural gas inventory in the United States to May 15

⑭ 01:00 Fed Vice Chairman Clarida participated in the discussion

⑮ 02:30 Fed Powell and Brainard give speeches

[Minutes of the Federal Reserve Meeting: Committed to Using All Tools to Support the Economy]

 

The minutes of the meeting released by the Federal Reserve in the early morning reiterated its position to maintain interest rates near zero, saying that the economic impact of the new crown epidemic has brought great uncertainty and considerable risks to mid-term economic activity. The members agreed that the Fed is committed to using all tools to support the economy.

 

[EIA report: US commercial crude oil inventories removed from strategic reserves last week decreased by 4.983 million barrels to 526.5 million barrels] EIA gasoline inventories increased by 2.83 million barrels and refined oil inventories increased by 3.832 million barrels in the week to May 15; Cushing crude oil Inventories decreased by 5.587 million barrels, the change in value hit a record low. Last week, US domestic crude oil production fell by 100,000 barrels to 11.5 million barrels per day.

 

[Bank of England Governor Bailey: The possibility of negative interest rates is not ruled out, but it has not been taken into consideration; the Bank of England believes that the British economy may shrink by 25% between April and June, due to the blockade measures taken during the epidemic]

 

[Bank of Canada Deputy Governor Lian En: Canada ’s second-quarter GDP may fall by 15-30% from later in 2019] The bank believes that the current policy rate of 0.25% is the actual lower limit, and negative interest rates are still in the Bank of Canada toolbox, but The stimulus measures the central bank has taken to lower interest rates and inject liquidity are very effective in providing the conditions necessary for a strong recovery in the Canadian economy.

 

[The source said that OPEC Secretary-General Barkin is satisfied with the rebound in oil prices and OPEC ’s compliance with the latest production cut agreement] Barkin said that the oil market has responded positively to this historic agreement and the active implementation of production cuts by member countries. In short, the fundamentals of oil supply and demand are gradually stabilizing and converging.

Technical side:

XAUUSD:

(Golden 1H chart)

From the golden daily line, MACD has signs of a top-to-back divergence. It rebounded on the uptrend line within 1 hour, but the upside force has weakened significantly. Structurally, it may be a small 4-wave adjustment and short on dips.

Pressure level: 1752

Support level: 1727

Operation strategy: shorting near 1752, target 1730, stop loss 1756

EURUSD:

(EURUSD 1H chart)

From the daily view of the euro against the dollar , the market rebounded to the important pressure on the BOLL rail. From the 1-hour chart, it reached the previous high resistance level, and the probability of touching the top of the box dropped.

Pressure level: 1.1000

Support level: 1.0900

Operation strategy: shorting near 1.0990, target 1.0910, stop loss 1.1020

GBPUSD:

(GBPUSD 1H chart)

From the daily view of the pound against the US dollar, yesterday closed the cross star, the rally came to an end, the 4-hour chart rebounded to the BOLL upper rail and fell back under pressure.

Pressure level: 1.2265

Support level: 1.2150

Operating strategy: shorting near 1.2265, target 1.2150, stop loss 1.2305

USDJPY:

(USDJPY 1H chart)

Looking at the 1-hour chart of USD / JPY, the market is running on the uptrend line, and every time you step back, it pulls up, indicating that the support is still very strong, and you continue to do more by stepping back on the line.

Pressure level: 108

Support level: 107.5

Operating strategy: go long near 107.5, target 108, stop 107.2

USOIL:

(USOIL 1H chart)

Judging from the US crude oil daily line, two yangs and one yin are strong, rising strongly, rising above the trend line for 4 hours, and going back on the line can continue to do more.

Pressure level: 35

Support level: 32.8

Operational strategy: go long near 32.9, target 34.8, stop loss 32.4

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