EURUSD, GBPUSD, USDJPY
Weekly Forex Analysis
(April 13 - April 17, 2020)
Hey! This is Philip with our new weekly outlook of the Forex market.
This is only a partial preview of the analysis. Go to the link below to read the Full Weekly Forex Analysis For FREE.
US Dollar Fundamental Outlook: Fed Floods Everyone With Dollars; Calms Turmoils In Financial Markets
It’s a slow start of the trading week this Monday morning as traders around the globe are slowly returning from the Easter holidays. But, that doesn’t mean that policymakers weren’t active in the markets and doing their part in helping to alleviate the pain from the coronavirus crisis.
The Federal Reserve, with an already running historic QE stimulus package, announced last week a further 2.3 Trillion USD program to support small and medium businesses - another unprecedented move by the US central bank in its 107 years of existence.
And we don’t even have to mention that these stimulus plans by the Fed and other central banks via QE and swap lines have completely compressed price behavior in markets. As a result, volatility in the Fx market has significantly been subdued in recent days, and economic data has not mattered much. Not even the huge misses in the unemployment claims, which now total 16.8 million jobs lost over 3 weeks, have moved the market by a notable margin.
With the potent monetary tools of central banks here to stay, USD volatility and general Fx volatility are likely to remain compress for the time being. That is, at least, until a new, unexpected event moves the needle in one direction or the other. The coronavirus crisis is the obvious front traders are watching, especially now that the epicenter of the pandemic has moved over the Atlantic to the USA.
Euro Fundamental Outlook: Yes There Is A Deal But Differences Remain Within The EU
Eurogroup finance ministers finally struck a deal last week after laborious negotiations, albeit not quite what the markets were hoping for. Netherlands blocked any possibility for Corona Bonds to become a reality while most other EU members have supported the idea. Nonetheless, the 540 Billion EUR package that they agreed is positive for the markets and will help to mitigate the harsh impact of the COVID-19 crisis on the economy.
The markets traded with a risk-on tone last week, and the Euro currency was driven by these forces also – falling versus the risk-sensitive currencies and strengthening against the safe-havens. Some period of relative calm is likely ahead of us in the markets as traders try to anticipate the end of the widespread coronavirus lockdowns. Re-opening the economy is what matters the most now in order for risk appetite to come back in a big way, and any small
hint for how that may come to be or when, may move the needle further in favor of risky assets.
EURUSD Technical Outlook:
As we generally expected at the start of the last week, not much action was likely in the Fx market.
Indeed, there are no significant changes on the EURUSD chart, with the main support and resistance levels still remaining unchallenged.
To the downside, 1.08 and particularly, 1.07 remain extremes as key support zones. To the upside, 1.10 is the first resistance, above which 1.11 should also act as an area where sellers will be attracted.
Overall, it’s likely that this 1.08 – 1.11 range will be maintained this week. The bias from larger timeframes is overall neutral (meaning there are both bullish and bearish signals which conflict with each other).
Find the rest of the weekly analysis (GBPUSD & USDJPY outlook) 100% FREE, at our website below:
If you have any questions or feedback, don't hesitate to reply to this email.
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
|
|
|
|
