ZuluTrade Blog

Profit Taking or Coronavirus fears?

Market View | Friday, March 27, 2020 3:29 PM GMT

US and EU markets retreat lower after their rebound strike as COVID-19 is spreading rapidly and globally.The infected cases in the US have overtaken China’s while the death toll in Italy, Spain, and the UK is still increasing. The overall trading bias is extremely fragile and volatile as good and bad news is “flooding” into Investors’ screens on a daily basis.

Most EU indices are having significant losses from -2% to -5% while the US premarket indicates a similar negative opening. The latest news is about Boris Johnson’s infection on coronavirus as he tested positive after having some mild symptoms. This comes after the announcement that Prince Charles is also positive on COVID-19. Earlier today Vas Narasimhan, CEO of Novartis, told to CNBC  “What we see time and again, if you back to SARS, if you go back to swine flu — the H1N1, 2009 — there is a surge of effort right after a pandemic and then the effort starts to fade away,” .

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Reviewing the forex market, EURUSD is heading at the intraday support 1,096 while GBPUSD is consolidating above 1,2195 and its RSI is forming negative divergence. USDJPY has finally violated its rising channel to the downside and the Fibonacci retracement levels worth Traders’ attention.

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EURUSD 60m chart

GBPUSD 60m chart

USDJPY 240m chart

Checking the ZuluTrade’s Traders Sentiment, the community is buying EURUSD and USDCAD while is selling GBPUSD, GBPJPY, and USDCHF.

Today’s economic calendar includes the following news:

Bank of Canada Rate Statement

Bank of Canada Press Conference


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