Forex Signals Brief for Feb 25: Coronavirus Fears Take Hold
Rowan Crosby • 2 min read
US Market Wrap
US equity markets copped a hammering to start the week with DOW shedding 1000 points and safe-havens performing strongly.
Fears over the spread of the coronavirus have finally taken hold after stocks shrugged off the noise as long as they could.
We are also hearing of more and more companies that will be impacted by the virus and that is no a fundamental reason for markets to ease back off their record high levels.
While all the focus is on the coronavirus at the moment, we do have a couple of interesting releases today that we need to watch.
German GDP is the first one and it will certainly have some breaking on how the EUR/USD performs. The market is expected growth of just 0.1% which is dangerously low and shows just how soft the European economy really is.
Later in the US session, we have a chance to gauge consumer confidence, which will be timely given the virus worries. For a long time, this was shrugged off, so it will be interesting to see how people are feeling.
Forex Signal Update
The FX Leaders Team finished with three wins from three signals in what was a strong showing to open the week.
EUR/GBP – Active Signal
The EUR/GBP has been holding the round number levels really well lately. We are short here looking for resistance above to hold price down.
EUR/CHF – Active Signal
We are back in the EUR/CHF as it continues to remain very soft. With buyers trying to get into the safe-haven CHF and weak EUR it’s hard to see a big change of direction in the short-term.
BTC appears to have failed its test at $10,000 level and has kept the series of lower highs intact.
That was exactly what we had been looking for as it indicates higher timeframe selling is taking place.
We can now remain bearish and if $9.600 finally drops, we could see a sharp sell-off.