Crude Oil Fall Unnerves Markets, What to Do

Updated 08:58AM 21/04/2020

In the G10 FX Market, JPY and USD are the top gainers today while NZD and NOK are the top losers, down -1.09% and -0.78% versus the dollar, respectively. The dollar was up on Tuesday versus the major currencies as investors looked towards safe-haven currencies after oil prices plummeted on Monday. U.S. Crude futures fell into negative territory for the first time though they managed to scrape back into positive territory earlier today. We expect too much pessimism and panic to be buying opportunity and too much positivity to be a selling opportunity because the current coronavirus pandemic is likely to last for a long time and short-termism is likely to be bad for trading.  

 

Sterling hit a 12 day low versus the dollar and we expect some further falls amid expectations of an extended lockdown as the UK struggles to ramp up testing that is needed to open the economy.

 

In the rates market, global yields were trading weaker with the US 10-year yield down -0.8bp trading at 0.608 and the German 10-year yield trading lower by -0.5bp around -0.461. In the Asian Session, Equities markets were trading weaker with S&P 500 futures down -0.5% at 2792.38, the Nikkei down -1.96% at 19283.5, and the Hang Seng down -2.33% at 23762.5 In the energy space, the Brent (front month) is trading down (-12.79%) for the day at $22.3.

 

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 1.0837 for 1.0811
Short-term view: EUR/USD resistance comes in at 1.0837 MACD and RSI have a bearish bias. Hence, we see a dip to 1.0811 enter at 1.0828. Above 1.0837 to open 1.0867.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2399 for 1.2365
Short-term view: GBP/USD GBPUSD resistance comes in at 1.2399 MACD and RSI have a bearish bias. Hence, we see a dip to 1.2365 enter at 1.2388. Above 1.2399 to open 1.2451

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 107.69 for 107.22
Short-term view: USD/JPY resistance comes in at 107.69 MACD and RSI have a bearish bias. Hence, we see a dip to 107.22 enter at 107.53. Above 107.69 to open 107.89

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6312 for 0.6245
Short-term view: AUDUSD resistance comes in at 0.6312 MACD and RSI have a bearish bias. Hence, we see a dip to 0.6245 enter at 0.6292. Above 0.6312 to open 0.6355