ZuluTrade Blog

Selling Pressure after the rebound!

Market View | Thursday, March 26, 2020 11:53 AM GMT

Stock markets are reversing to the downside once again as the short-term Traders proceed to profit-taking as well as COVID-19’s spread is getting wider day after day. The infections reached 475k globally, deaths are above 21k while 114k cases have been recovered.  Italy and Spain surpassed China in deaths while the USA’s infection rate is really fast. In the meantime, the economic data are not helping the markets as  UK Office for National Statistics announced “ In the three months to February 2020, the quantity bought in retail sales fell for the fourth consecutive month by 0.6%” while Rolf Bürkl, GfK Consumer Expert, explains “ "In light of the current development, we are withdrawing our consumer forecast of one percent growth for 2020. Retailers, manufacturers and service providers must prepare for a recession,".

Most EU indices are moving lower recording from 1 to 2% losses while the Asian market closed mostly in red. Nikkei fell sharply -4.51% as Japan is ready to declare a state of emergency due to the coronavirus. On the other hand, China is still smoothing its measures on Hubei.

Reviewing the forex market, the US dollar is getting weaker vs its counterparts. EURUSD broke out and confirmed the zone (mentioned repeatedly) and is heading to the next resistance at 1,096. GBPUSD tested 1,196 twice and is consolidating from beneath it. USDJPY is getting oversold on RSI (14).

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60m charts




The USOil still consolidates around 22 zone as there is not a catalyst event yet.

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USOil 240m chart

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

Today’s economic calendar includes the following news:

UnitedKingdom - Monetary Policy Summary

UnitedKingdom - BoE Interest Rate Decision

UnitedStates - Initial Jobless Claims (Mar 20)

UnitedStates - Gross Domestic Product Annualized (Q4)


The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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