Forex Signals Brief for Feb 26: Coronavirus Fears Continue for Another Day
Rowan Crosby • 2 min read
US Market Wrap
It felt like a case of deja-vu as markets across the globe continued their route on the back of the coronavirus outbreak.
Risk-assets keep being hit hard while the safe-havens like GOLD remain bid up. When the dust settles, we will likely see some sharp reversals, particularly in equities, which could prove to be good value, on a 10% drop.
It’s a modest day of data ahead and in truth even if there was anything important it would likely be overshaded by the coronavirus.
While in the US, new home sales are the main release of interest. But as was the case yesterday, most focus is on the sentiment in the air and if and when a bounce will come.
Forex Signal Update
The FX Leaders Team closed one signal yesterday at our profit target, in what was a quiet session given the volatility.
GBP/JPY – Pending Signal
The GBP/JPY fell away as we expected it might. Price is now sitting on support so there is clearly more room for further downside here and we’ll be hunting a short.
EUR/CHF – Active Signal
We are short the EUR/CHF as it is very weak at the moment. A break of the 1.0600 level would be very handy and could lead to a big drop.
BTC has been behaving itself really well lately and since failing at the $10,000 level has been very soft.
Yesterday we said that if $9,600 finally drops, we could see a sharp sell-off. And sure enough, that’s what has happened.
Price moved perfectly into the next support region at $9,200 and I would also expect to see buying at $9,000.
The big smackdown that we saw and the series of lower higher, really indicates some longer timeframe players unwinding positions, so we could see further downside. In the short-term, I expect a bounce.