Top trade setups in forex – Choppy sessions in play!
|The U.S. stocks erased early gains to end modestly lower, as the duration of the global slowdown due to the coronavirus pandemic remained uncertain. The Dow Jones Industrial Average surged 937 points at one point only to end 26 points lower (-0.1%) on the day at 22653.
The S&P 500 eased 4 points (-0.2%) to 2659, and the Nasdaq 100 was down 32 points (-0.4%) at 8049. Shares in Household & Personal Products (-2.96%), Food & Staples Retailing (-1.62%) and Pharmaceuticals, Biotechnology & Life Sciences (-1.56%) sectors lost the most.
Boeing lost 4.8%, and Gilead Sciences fell 3.9%. On the other hand, PVH Corp jumped a further 17.7%, and Kohls Corp rose 20.2%. About 14% of stocks in the S&P 500 Index were trading above their 200-day moving average, and 73.2% were trading above their 20-day moving average.
XAU/USD - Bullish Bias Dominates
Gold marked a day-high of $1,678 an ounce before retreating to a close at $1,646. The U.S. economic data, the National Federation of Independent Business's Small Business Optimism Index, declined to 96.4 in March, from 104.5 in February.
Earlier in the day, Japanese Prime Minister Shinzo Abe declared a month-long state of emergency in response to the coronavirus pandemic, citing the country's largest postwar crisis. The cabinet also passed a record economic stimulus package worth 108 trillion yen ($1 trillion).
European stocks remained on the upside, with the Stoxx Europe 600 Index gaining 1.9%. Germany's DAX jumped 2.8%, France's CAC rose 2.1%, and the U.K.'s FTSE 100 was up 2.2%. U.S. government bond prices were still under pressure, as the benchmark 10-year U.S. Treasury yield charged six basis points higher to 0.735%.
On Wednesday, the precious metal gold edged higher as the growing coronavirus death toll hit risk sentiment. At the same time, traders await the announcement of the U.S. Federal Reserve's policy meeting minutes for hints on additional stimulus measures, which is driving bullish bias in gold today.
XAU/USD - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1636.8 |
1653.86 |
1665.18 |
|
1625.48 |
1682.24 |
|
|
1597.1 |
1710.62 |
XAU/USD - Daily Trade Sentiment
Technically, the yellow metal gold still appears bullish nearby 1,643 support and bearish under 1,653 resistance mark. Over 1,653 levels, the subsequent resistance can be found at 1,671, and violation of this mark may head towards the next resistance level of 1,689. Alternatively, the support lingers nearby 1,643, and bearish violation of this mark can drive additional selling trend unto 1,635 and 1,623 levels. Overall, the trading bias persists neutral as traders are keeping an eye on COVID 19 and a softer dollar.
USD/CAD - Rose Over Mid-1.4000 Amid Stronger USD
During Wednesday's European session, the USD/CAD currency pair stopped its previous 2-day bearish trend and rose just above mid-1.4000 level mainly due to recent upticks in the greenback in the wake of safe-haven demand. In the meantime, the recent pickup in oil prices supported the loonie currency and seemed to cap gains in the pair. The USD/CAD pair is trading at 1.4041 and consolidates in the range between the 1.3986 - 1.4082.
At the USD front, the U.S. dollar taking bids on the day, as the S&P 500 futures slumped by 0.5%, indicating the risk-off sentiment in the global market after New York reported 731 deaths from coronavirus yesterday, which is the most significant daily rise. On the other hand, Spain's daily losses of coronavirus deaths also increased for the 1st-time in 5-days.
Therefore, the strong USD demand eventually helped the pair to keep higher and take some fresh bids on the day; hence, the USD/CAD stops two consecutive days of losing streak.
Additionally, the fresh uptick in crude oil prices, which is now up around 3.5% on the day, supporting the demand for a commodity-linked currency like Loonie, which seen as one of the key factors that kept a lid on any additional gains of pairs.
USD/CAD - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1.3933 |
1.402 |
1.4095 |
|
1.3858 |
1.4182 |
|
|
1.3697 |
1.4344 |
USD/CAD - Daily Trade Sentiment
On Wednesday, the USD/CAD prices haven't changed a lot as the pair continues trading around 1.4038, but still lingering in the same trading range of 1.4145 - 1.3960. On the 4 hour chart, the USD/CAD currency pair extends trading within a descending triangle pattern, which is expected to support the USD/CAD around 1.3950.
The USD/CAD is likely to face resistance at 1.4115, which is extended by the 50 periods EMA and above this, the next resistance stays around 1.4155, which is extended by descending triangle pattern. Today, the bearish breakout of 1.3950 level can lead the pair further down until the next support area of 1.3735. Elsewhere, we may see choppy trading within a tight trading range of 1.4145 - 1.3960.
AUD/USD – Lowers Low Pattern In-Play
The AUD/USD pair found on the bearish track and failed to extend its previous session gains, while dropped to the 0.6116 and representing 0.29% declines on the day mainly due to the risk-off market sentiment in the wake of intensifying coronavirus fears. As in result, the U.S. Dollar continues to getting support as a safe-haven demand and exerting some bearish pressure on the pair.
Currently, the AUD/USD is trading at 0.6141 and consolidates in the range between the 0.6116 - 0.6178. The AUD/USD pair continues to struggle to find acceptance above the 0.6200 round-figure marks but faced with some fresh supply on Wednesday. As we already mentioned that the pair halts 2-consecutive days of winning streak due to recent concerns about increasing deaths from the COVID-19 pandemic.
At the starting of the week, the coronavirus cases showed some signs of slowing down, but now this optimism turned out to be short-lived after New York reported 731 deaths from coronavirus on Monday it is the biggest daily rise. On the other hand, Spain's daily losses of coronavirus deaths also increased for the 1st-time in 5-days.
All traders seem cautious due to the latest coronavirus situation and took bids in traditional safe-haven currency. This eventually helped the U.S. dollar and turned out to be one of the key factors weighing on the perceived riskier currency the Aussie.
AUD/USD - Technical Levels
|
Support |
Pivot Point |
Resistance |
|
0.6114 |
0.6161 |
0.6215 |
|
0.606 |
0.6262 |
|
|
0.5958 |
0.6364 |
AUD/USD - Daily Trade Sentiment
The AUD/USD jumped 1.2% to 0.6158. The Reserve Bank of Australia kept its benchmark rate at 0.25% unchanged as expected and said it "will not increase the cash rate target until progress is being made towards full employment." The AUD/USD is holding right below the triple top resistance level of 0.6200. The Australian dollar is gaining a bullish momentum due to a steady policy statement from the RBA.
The AUD/USD is very close to violating a sideways range of 0.6205 - 0.6025, and if it manages to break out on the higher side, the pair may head towards the next resistance level of 0.6290 and even higher towards 0.6325. Let's consider placing bullish trades over 0.6200 and selling below the same.
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