Today should be a follow up to yesterday, the initial moves have been made and while we get closer to Thursday with the OPEC meeting and unemployment claims, the dollar does not appear to be strong, it seems the dollar is running out of steam and we could see real weakness for the remainder of the week.
And if that was not enough, Wuhan is about to get its second wave of the Coronavirus as thousands of people have been spotted trying to flee the city.
With that said, today could see the markets consolidate without any strong direction because of tomorrow or they could run aggressively before the news on Thursday so keep an eye on your risk management today, but the price targets we are seeking are the following.
There is no reason to go lower on EURUSD unless it is overall bearish, and the dollar strengthens over the coming days hence 1.1060 is the Target for the week.
GBPUSD may prove to be the better buy targeting 1.0770, as the eurozone over all is getting hit a lot harder in the different sectors of the economy and the pound for now has not felt the burden as heavy as lets say, Spain, France and Italy has.
Here we have a way to sell the US Dollar should we see weakness and the reason we choose The Canadian dollar to trade against it is due to the oil wars we are seeing, so if the economy weakens in the US with oil promoting Canada then we can see a good move to the downside in this pair targeting 1.3550.
Dr. Micheal Bury, this man is known for shorting the housing market during the 2008 market crash and saw it long before anyone else realized it. Today he is heavily selling the indexes like the S&P500 where he told Bloomberg News: “significant bearish market bet that is working out for now,” without providing details except to say it was a trade of a “good size” against indexes.
Here we have the EFT for that index and maybe something to seriously start considering for the downside.