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EUR/USD and GBP/USD

While cases in the US are starting to really accelerate as expected the UK seems to be following, so while there is a strong bias, toward further prices declines in the EUR/USD and GBP/USD there are short term levels above

We believe before we trade lower we may trade higher to the above levels or at least the first level of resistance that should prove an entry short for the EUR/USD down to 1.0450, so potentially 350 pips to the downside.

With GBP/USD, we could expect the level of resistance above to be hit and with further downside expected down to 1.1291 this provides a long line of one-sided trading which could be offered all week. Of course, if the price goes above the resistance line and finds some level of support, we may see some intra week upside but the target for this week is to sell GBP/USD down to 1.1291.

Both these trades could take the entire Monday to get going as there are no official economic events to drive them lower, but we should see the weakness come in by tomorrow at least.

The USD/JPY is offering a potential upside to 115.046 if we get the initial trades lower in GBP and EUR then this would provide a good trade to buy from the line of support in price.

Tesla is still a stock to watch this week, as downward pressure is expected in the US market so we could see mainly the automotive industry hit by the coronavirus as people try to keep their money at home instead of purchasing luxury goods such as a new tesla car, this trade would provide a good hedge to the other trades as well

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