Forex Signals Brief for Feb 28: The Market Collapse Continues
Rowan Crosby • 2 min read
US Market Wrap
It was another sea of red for stock markets yesterday as the selling momentum has started to look like more of a panic.
Of course, the fear is being driven by worries surrounding the Coronavirus and its continued spread. There is likely to be some impact on earnings of global companies going forward so in some respect the market is right to price that in now.
At the same time, there are growing worries about a Bernie Sanders victory and what that could mean for the economy. So there are some legitimate things for investors to be concerned about.
That said, stocks are now off -12.5% so the question still remains, how much more can price fall before the buyers get interested?
Data will once again play second fiddle to what is happening in the broader markets at the moment.
The EUR/USD does get a look at German employment which is always an important number.
Later in the session the USD/CAD might see some movement on the back of GDP, however, as we know, sentiment is king at the moment.
Forex Signal Update
The FX Leaders Team finished with the one winning signal from two trades in what is shaping up as another solid week.
AUD/USD – Active Signal
The AUD/USD has been bearing the brunt of the risk-off tone and is very soft at the moment. We are short looking for further selling.
SPX – Watching
The SPX is of most interest to everyone at the moment, given what is unfolding. Will the bounce come headed into Friday? Time will tell.
The safe-haven appeal of BTC is clearly still under review at the moment, given it has been selling off all week, in line with the broader market.
For now, price remains under the $9,000 level and there is certainly selling pressure.
How price responds on Friday to that level, will determine where Bitcoin might go next week.