According to the chart, the franc is likely to move up further. The USD/CHF pair is expected to go down, respectively. So, we need to look for the resistance level in order to open sell deals. Last week, I noted that the main resistance for the February option contract had been the level of 0.9770.
The resistance level for the current March contract is 0.9795. The difference is slight. However, its low is the level of 0.9680.
Today, an update on new coronavirus cases came from Asia:
+16,000 new cases !
Why is this actually important? This news is relevant because it directly affects stock and currency markets.
Amid these reports, the Japanese yen has advanced sharply just in two minutes! Gold prices followed the upward trend. Both gold and the yen belong to safe-haven assets. This means that no matter what happens in the options market or what the technical analysis or indices show, there are some fundamental rules that will always apply to the market. So it is very important to consider these factors.
Today I would recommend focusing on the yen. The euro and gold are also a good option.
The euro is currently following a very distinctive downward trend. It is still too early to say where the new low will be formed.
As for me, I donít see any point in opening short positions. But long ones are not a good idea either.
Here we can observe a level at 1.064 - 1.0897 available for opening short positions. This is the level of sell limit. You can look for opening long deals above the level of 1.0900 but not lower.
The high of the day is at 1.090 - 1.093. The price is unlikely to go above it.
A tip for today: keep the short positions, but below the level of 1.060 close just some of them. It is recommended to close long deals only above the level of 1.0990.
I have previously discussed that there is a level at 1560 -1563 available for the long positions on gold. We could observe a reversal there. On Friday, we could see the spike, from Monday till Tuesday we accumulated deals and closed them later. The targets were set above the level of 1573. Our next target is at 1593. There I think the main liquidity can be observed.
Those who trade on platforms and closely monitor the news have probably gained from the market movements during early session.
Last week, February 10 - 14, 2020, looking at the 1day chart and the 1week chart, we see eurusd further continuing downtrend hitting the lowest now at 1.08269. Eurusd has already broke the last long-term bottom at 1.08788, Wednesday, February 12, and eurusd still momentum downtrend so possibly eurusd will further continue the downtrend. In the 1day chart, both the macd and the ao continue to show downtrend signal while the bbands is being thread in the downside limit.
Last week, February 10 - 14, 2020, looking at the 1day chart and the 1week chart, we see gbpusd kinda' slowed down reversing uptrend instead of continuing the downtrend. It seems that gbpusd cannot go passed the bottom/support at 1.27674 so possibly gbpusd can still continue the uptrend. But then the downtrend from the top at 1.35135 is still intact so possibly the downtrend may continue also. However with the current momentum downtrend, it is then the view that most possibly gbpusd will continue the downtrend and this will be confirmed by the break of the said bottom/support 1.27674. However if the bottom/support holds, and the downtrend is then broke, then the uptrend continue.
Last week, February 10 - 14, 2020, looking at the 1day chart and the 1week chart, we see usdjpy continue the uptrend although quite shorly keeping the bottom/support at 109.539 intact. Is quite noticeable in the 1day chart and in the 1week chart how short the movement for usdjpy for the week and keeping above the bottom/support at 109.539. If usdjpy would reverse down then it should have fallen already with strong momentum down bouncing-off the top/resistance downtrend just near above. Usdjpy must be having strong support now so it is then the view that usdjpy will further continue the downtrend and break the long-term downtrend just near above. Both in the 1day chart and the 1week chart, usdjpy seem to continue to be above the middle of the bbands.
Last week, February 17 - 21, 2020, looking at the 1day chart and the 1week chart, we see eurusd make bottom at 1.07819 Wednesday, February 19, and come Friday, February 21, with the weak usd news, Flash Manufacturing PMI, eurusd suddenly surge up higher strongly with a very long white candlestick. The view is that eurusd was continuing the downtrend but with the weak USD news, Friday February 21, it sent eurusd strongly up. The question is whether the said uptrend will still continue because of the strong momentum, or will the long-term downtrend still continue. It is the view that the downtrend will further continue because although the last bottom 1.08788 has already been broke, however looking at the 1week chart and the 1month chart, eurusd has yet to complete the seeming long-term downtrend channel by hitting the downside of the downtrend channel.
Last week, February 17 - 21, 2020, looking at the 1day chart and the 1week chart, we see gbpusd continue the downtrend continuing the downtrend that started from the top at 1.35135. However, with the weak usd news, Flash Manufacturing PMI, Friday, February 21, gbpusd strongly surge up although gbpusd appears to be continuing the downtrend and is only on retracement and consolidation. Will gbpusd now continue the uptrend or will it further continue the downtrend with gbpusd showing strong momentum uptrend with the weak usd news. Since the upstrend surge was with the news, it is the view that most possibly gbpusd will further continue the downtrend because it is most often the case that volatility brought about by the news is most often short-lived, unless of course that the news volatility coincide with the current trend. Since the current downtrend is still not broken, then gbpusd most possibly resume the downtrend
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