Markets Rally To Open February - Forex News by FX Leaders
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Markets Rally To Open February

Posted Monday, February 3, 2020 by
Shain Vernier • 1 min read

February has opened with a bang on Wall Street. The U.S. indices are trending higher as fears over the coronavirus appear to be subsiding. At the halfway point of the U.S. session, the DJIA DOW (+185), S&P 500 SPX (+28), and NASDAQ (+131) are all deep into the green. For the time being, it appears that this morning’s robust ISM Manufacturing PMI (Jan.) numbers are driving bids to the markets.

Here is a quick recap of today’s ISM report:

Event                                                Actual       Projected     Previous

ISM Manufacturing PMI (Jan.)        50.9              48.5                47.8

ISM Employment Index (Jan.)          46.6             46.6                45.2

The headliner of this group is the ISM Manufacturing PMI (Jan.). The number came in well above projections and kicked of 2020 on a strong note. Given the recent angst over the coronavirus, and to a lesser degree the Trump impeachment saga, today’s ISM numbers came as a pleasant surprise to equities bulls.

Stock Markets Rally, Safe-Havens Struggle

All in all, it’s been a positive start to February for risk-friendly investors. Stock prices are up, safe-havens are down, and the markets are being dominated by positive sentiment.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

Here are a few levels to watch in the USD/CHF for the near future:

  • Resistance(1): Daily SMA, 0.9687
  • Resistance(2): Bollinger MP, 0.9694
  • Support(1): January’s Low, 0.9613

Bottom Line: Although today’s action in the Swissy is bullish, we are very likely to see a test of January’s Low in the near future. Until elected, I will have buy orders in the queue from 0.9616. With an initial stop loss at 0.9594, this trade yields 22 pips on a solid 1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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