Everyone wanted a sweet piece of the Dollar today as panic surrounding the coronavirus outbreak boosted appetite for the world’s most liquid currency.
Stress in the markets for Dollar funding outside of the United States lifted the Dollar Index as money managers and businesses scrambled for a slice amid the darkening economic outlook. With the Greenback marching higher despite the Federal Reserve going all out on lowering interest rates, it is safe to say that bulls remain in the driving seat.
Looking at the technical picture, the Dollar Index is heavily bullish on the daily timeframe. A solid daily close above 99.80 should open the doors towards 100.00 before the end of Q1.
Pound drops like a stone……
Sterling tanked against a broadly stronger Dollar and weakened against most G10 currencies today.
The unsavoury mixture of coronavirus concerns and Brexit bruised buying sentiment towards the currency, resulting in the GBPUSD tumbling to levels not seen in six months below 1.2050. Focusing on the technical, prices are heavily bearish on the daily charts with the downside momentum opening a clean path towards 1.2000 in the short term.
S&P 500 attempts to nurse virus inflicted wounds
After experiencing a gut-wrenching selloff in the previous session, the S&P 500 is attmepting to nurse heavy wounds inflicted by recession fears and widening health crisis.
The Index remains heavily bearish on the daily charts with further losses on the cards as virus-related concerns intensify. Technical traders will continue to closely observe how prices behave around the 2500 level. Should prices fail to push back this level, the next key level of interest will be around 2350. If bulls are able to conquer 2500, the next key level of interest will be around 2650.
Is Oil heading towards $20?
It was another day but the same story with Oil which struggled to push back above $30 amid the coronavirus chaos.
There is a risk that demand-side fears and oversupply concerns drag Oil deeper into the abyss with $20 acting as the next major point of interest. Looking at the technical, bears still remain in control with sustained weakness below $30 opening the doors towards $25.
Currency spotlight – EURUSD
The Euro stood little chance against a resurgent Dollar today and this was reflected on the EURUSD which tumbled over 200 pips.
Technicals suggest that the trend is turning negative with bears eyeing 1.0933. A solid breakdown below this level should encourage a smooth decline towards 1.0879 and 1.0800.
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