Moody's Downgrade China's Growth, Global Economy in Question

Updated 10:08AM 18/02/2020

JPY and CHF are the top G10 FX gainers today, up 0.16% and 0.05% vs the dollar while NOK and SEK are the top losers, down -0.75% and -0.58% vs the dollar. The yuan weakened to near 7 per dollar as concerns over the economy deepened following Moody's downgrade of China's growth for 2020. The Australian and New Zealand Dollar are also likely to suffer amid mounting cost of the coronavirus epidemic. Elsewhere, euro may continue to struggle as investor confidence in the eurozone economy continue to wither ahead of the German Zew Survey. In the Asian equities space, the Nikkei 225 closed -1.40% lower at 23,193.80, Hang Seng closed -1.54% at 27530.2 and Kospi ended -1.48% at 2208.88. The European equities were trading weaker with the FTSE down -0.4% at 7403.56, DAX down -0.8% at 13673.99, and CAC down -0.6% at 6049.44. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.5406% and the Bund 10-year yield trading at -0.427%. In the energy space, the Brent (front month) is trading down (-1.89%) for the day at $56.58.

 


Economic Calendar

 
 

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 1.0853 for 1.0806
Short-term view: EUR/USD resistance comes in at 1.0853, MACD below zero and RSI is below 50. Hence we see a downside to 1.0806. Above 1.0853 to open 1.0874

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.3020 for 1.2930
Short-term view: GBP/USD resistance comes in at 1.302, MACD crossover suggests a bearish bias and RSI is below 50. Hence we see a downside to 1.293. Above 1.302 to open 1.3042.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 109.85 for 109.50
Short-term view: USD/JPY resistance comes in at 109.85, MACD crossover suggests a bearish bias and RSI is below 50. Hence we see a downside to 109.5. Above 109.85 to open 109.99.

 

EURGBP Chart (Two-week)

 
 

Strategy: Support at 0.8324 for 0.8356
Short-term view: EUR/GBP support comes in at 0.8324, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 0.8356. Below 0.8324 to open 0.8312

 
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