Forex Signals Brief for Mar 23: More Pain to Come?
Rowan Crosby • 2 min read
US Market Wrap
For investors, what has been a fortnight of carnage might continue into this week as the world braces for continued fallout from the coronavirus.
As Governments start to tighten controls in a bid to contain the spread, they are also doing their best to put together stimulus packages to try and ease the financial fallout. For the most part, it looks like the world is bracing for another GFC but only time will tell just how bad this hit will be.
At the same time, central banks have started to fire everything they have at the various world economies and most have slashed rates to virtually zero while looking to work together to stem the bleeding.
It’s still too soon to tell what will lie ahead, however, markets will continue to judge the steps that are being taken.
The week ahead will start to feature some economic data that we should begin to pay attention to.
There will be some PMI readings this week and they might feature some hits thanks to the coronavirus. As yet, we haven’t really seen much data, with the exception of China that was hit early and hard. Ironically, the number of cases in China appears to be under control as Beijing, continues to crackdown.
In the US, the attention will again be on the jobless claims that are expected to skyrocket as businesses are forced to close and people struggle to pay their bills.
We are already seeing weakness across the board today with key risk trades all looking soft. So we have to expect and week to start in the red.
Forex Signal Update
The FX Leaders Team finished with 10 wins from 12 trades for an 83% strike rate on the week in what was a stellar performance.
Be sure to follow our live signals as more opportunities continue to present themselves every day in the current wild conditions.
AUD/USD – Active Signal
SPX – Watching
The SPX has dipped under the 2,400 level which had been holding up recently. Price is now off 32% and there are fears there could be more selling ahead.
BTC has run up nicely since holding the $5,000 level and actually pushed as hard as $7,000.
Price has fallen back since that point and this might set the benchmark for the short-term range that we’ll be trading in for now. I would think most rallies would be capped at this stage and there appears buyers below.