ZuluTrade Blog

Reversal Indications...

Market View | Monday, March 2, 2020 10:47 AM GMT

Central banks and governments start taking measures to deal with the coronavirus impact on the global markets. Japan’s Nikkei 225 closed with profits (+0.95%) as Haruhiko Kuroda, Bank of Japan Governor, announced that they will give the necessary liquidity through market operations. Likewise, China's Shanghai Composite index outperformed +3.15% as traders are discounting the fact that China will act decisively and support their economy.

EU opening is positive too as investors speculate that central banks will proceed to new interest rate cuts. Most EU indices are surging more than 1% even though the COVID-19 threat isn’t yet over. Naturally, US pre-trading session is following the same optimistic worldwide bias. SP500, US30 and NAS100 record gains more than 1-2%.

Commodities are rising with XAUUSD recovering a part of Friday’s losses (which was a technical fall due to covering of margin calls). Also, USOil is surging more than 2% to the upside after bouncing at 43 area. Reviewing the bonds market, United States Government Bond 10Y yield has recorded a new record low which proves the fact that traders are looking for safe assets to deal with the selling-off momentum.

Heading to the forex market, EURUSD continues higher while USDJPY and USDCHF are getting stabilized as investors hope that Germany will take fiscal stimulus measures to help the economy while, on the other hand, US will cut the interest rates.

Let’s review some basic daily charts.






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