So today we have a mixed basket of opinions and analysis, starting out with oil!
Yesterday we saw a never before seen level move in oil 25% in a single day, now the media portrays that this was due to a phone conversation and a trump tweet, claiming that Saudi Arabi and Russia will by 10-15 million barrels a day!
Now just wait a second! Your telling me the two biggest bullies in the school are both willing to cut their own production in half?! Does that seem reasonable? I didn’t think so, what did Russia do?
Well after the outrageous claim Russia stepped out to quickly shoot this downing stating it never entered into such an agreement and later Saudi Arabia thought it should do its part to clarify that an emergency OPEC meeting was called in and this meeting could lead to some form of cut.
Now if that is not market manipulation, then explain, how yesterday at the same time the US Unemployment numbers hit the highest on record 6 million people filed for unemployment, in two weeks that brings the numbers to 10, which means that a huge population is once again about to default on their mortgages! But the dollar strengthened?
This Covid-19 operation is 2008 multiplied by one celebrity running a country
So, what does this mean for your trades? Well if they strengthen the dollar on such bad news this means its only a matter of time before it starts showing weakness, so strength for foreign currencies
EURUSD looking for 1
1.1060 as an upside objective, it may trade a little lower initially, but we are ultimately seeking higher prices for today and the start of next week.
The GBPUSD on the buy side could be the better trade as it was not willing to go lower when the dollar strengthened! So we could be seeking ultimately the 1.2770 and then potentially back to the 1.30 levels
On the downside, we are seeking 1.3920 as a target because of the recent surge in strength in oil as well as the manipulation of the dollar and expected weakness but we could see a small spike before this.
Tesla continues to provide a downside opportunity, we are currently seeking near term around 390 as a possible object before 260, unless it trades higher today in which case it could provide another selling opportunity at 515.