Virus Fears

Forex Signals Brief for Feb 3: Coronavirus Continues To Weigh on Markets

Posted Monday, February 3, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

US markets continued with the same theme we are getting accustomed to at the moment and sold off on more coronavirus fears.

As the media continues to highlight more and more cases of the virus, we are clearly seeing the toll it is taking on markets.

China was back today after the new year break and stocks sold off 9% at the open. Clearly, things are negative at the moment and the SPX continues to remain very soft.

But to put things in context, 34,000 people died in the US last year from influenza with 5% of the population visiting a healthcare professional as a result. So even in the current state, the numbers are not looking as serious as the media would have us believe. Certainly in comparison to the yearly flu season stats.


Today’s Agenda

All the headlines this week will be about China, but there are a few major economic events to watch for.

The new month means another US jobs report is due on Friday. This has been a robust area of the economy and we should expect continued growth in this area.

While out of Australia, the RBA meets to determine whether or not to cut interest rates. After some decent data on jobs and CPI, the odds of another cut have dramatically fallen, but keep a close watch on the AUD/USD tomorrow.


Forex Signal Update

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AUD/USD – Active Signal

We are long the AUD/USD despite all the negative headlines. There is massive support at this 0.6700 level and we are very likely to get a bounce here even if it does eventually break. 

AUD/USD – 240min.


EUR/CHF – Active Signal

The EUR/CHF signal continues to grind lower and we should also be expecting a huge bounce at some point. It simply needs to survive this push.

EUR/CHF – 240min.


Cryptocurrency Update

BTC continues to consolidate and we are still really waiting for the next move to show its hand. Now that price is above the $9,000 level we can be bullish, but resistance remains strong.

Price is holding around $9,400, but we have had two false breakouts and $9,600 remains a tricky one to crack it seems.

I still feel a test of $10,000 is on the cards, but I’m not confident price will see much more upside.

BTC – 240min.
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