Weekly outlook DXY: Coronavirus part 3.
The price made a retracement with a strong momentum from the low on the last week, bringing an uncertainity on the direction of the market on march, lets see what is going on and further more for the coming week:
In the fundamental side:
The coronavirus outbreak has create a global coordination between the principal central banks on the world, the Fed cut finally his interest rate to the range of 0-0.25 and QE programs in order to give better conditions to the market for all the limitation generated by the coronavirus outbreak. Right now the market eyes are monitoring the development of the virus in Europe and in US, in both areas the cases hasn’t stop growing in a expontential way, giving pressures for a possible recession on the market. From one side, the Fed decision give pressure to the downside for the dollar index, but the breakout and the number of cases on Europe, push the dollar index to the upside because the EURUSD currency.
ONE IMPORTANT DATA: The recovery rate of China had rise an surpass de 80% of cases. The industrial production of China realesed in 3 minutos is an important indicator to asses the economy damage in the country of the virus.
In the technical side:
The price reenter to the channel, and touch the middle trendline of the channel, if the price break this area because the outbreak we can expect the price to touch once again the upper part of the channel. If the price respect property the middle line, we can see more downside movement.
In the fundamental side:
The coronavirus outbreak has create a global coordination between the principal central banks on the world, the Fed cut finally his interest rate to the range of 0-0.25 and QE programs in order to give better conditions to the market for all the limitation generated by the coronavirus outbreak. Right now the market eyes are monitoring the development of the virus in Europe and in US, in both areas the cases hasn’t stop growing in a expontential way, giving pressures for a possible recession on the market. From one side, the Fed decision give pressure to the downside for the dollar index, but the breakout and the number of cases on Europe, push the dollar index to the upside because the EURUSD currency.
ONE IMPORTANT DATA: The recovery rate of China had rise an surpass de 80% of cases. The industrial production of China realesed in 3 minutos is an important indicator to asses the economy damage in the country of the virus.
In the technical side:
The price reenter to the channel, and touch the middle trendline of the channel, if the price break this area because the outbreak we can expect the price to touch once again the upper part of the channel. If the price respect property the middle line, we can see more downside movement.
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