Coronavirus - We Have Not Seen the Bottom Yet

Updated 08:55AM 17/04/2020

In the G10 FX Market, NZD and JPY are the top gainers today, up 0.15% and 0.06% versus the dollar while GBP and SEK are the top losers, down -0.17% and -0.16% versus the dollar, respectively. The dollar weakened after risk sentiment improved on positive news on Coronavirus. There was a broad flattening of the curve of new coronavirus patients across the globe and experimental drug remdesivir showed positive results in a trial on severe COVID-19 patients.

 

In our view, this is premature and we need more evidence to suggest that things are getting better. The flattening of the curve is happening due to severe lockdown across the globe and risk remains from a second wave. Also, remdesivir drug is known for some time now and we will need more evidence to suggest that it can help improve the coronavirus situation with any degree of success.

 

In the rates market, global yields were trading mixed with the US 10-year yield down -3.2bp trading at 0.642 and the German 10-year yield trading up by 0.6bp around -0.472.

 

The European Equities were trading firm with Euro Stoxx 50 up 3.08% at 2898.060, FTSE 100 up 2.61% at 5775.240 and DAX up 3.17% at 10622.200. The S&P 500 futures were down -0.13% at 2865.75. In the Asian Session, Equities markets traded higher with the Nikkei 2.9% at 19850.0, and the Hang Seng 1.43% at 24350.5. In the energy space, the Brent (front month) is trading down (-2.56%) for the day at $27.77.

 

10-year Yields Daily Chart (6-month)

 
 

Daily FX Pivots

 
 

Brent Crude Daily Chart (1-month)

 
 

(Content and Data by Tradermade)

 

Forex Chart and Technical Analysis

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.0895 for 1.0800
Short-term view: EUR/USD EURUSD MACD and RSI are flat but resistance comes in at 1.0895 and we see a dip to 1.08 enter at 1.0866. Above 1.0895 to open 1.095.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Support at 1.2465 for 1.2522
Short-term view: GBP/USD support comes in at 1.2465 MACD and RSI have a bullish bias. Hence, we see bounce to 1.2522 enter at 1.2484. Below 1.2465 to open 1.24

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 107.36 for 108.28
Short-term view: USD/JPY support comes in at 107.36 MACD and RSI have a bullish bias. Hence, we see bounce to 108.28 enter at 107.66. Below 107.36 to open 106.8

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6308 for 0.6378
Short-term view: AUDUSD support comes in at 0.6308 MACD and RSI have a bullish bias. Hence, we see a bounce to 0.6378 enter at 0.6331. Below 0.6308 to open 0.6282