The Unites States Federal Reserve took emergency measures on Monday by cutting its key interest rate by a whopping 100 basis points to 0.25%. These kind of measures were last taken during the 2008-2009 financial crisis. Governments around the world are shutting down boarders, placing restrictions on mass gatherings and closing down theaters, bars, restaurants and other businesses that may contribute to the spread of the relentless coronavirus. While some businesses are struggling, others are making a fortune, as people around the world are panic mass buying necessities such as canned goods, hand sanitizer and toilet paper to name a few.
The Reserve Bank of New Zealand also cut its key interest rate by 75 basis points on Monday to 0.25% and central banks around the world continue to pump liquidity into their economies to help curb the blow of the imminent slowdown in their economies. Europe is now the new epicenter of the breakout. According to Johns Hopkins University, Italy is in second place with close to 30,000 infected.
The S&P500 index (SPX) is trading at December 2018 support around 2386. The index broke below 200 EMA on a weekly TF and currently trading at 38.2% Fibo as support, Fibonacci levels from 2009. NASDAQ (NDAQ) is trading around 85.31 on a weekly TF and met support at the 200EMA. Dow Jones has dropped to 2017 support around 20188.5. Gold continues to decline and trading at December 2019 support around 1484 per troy ounce after dropping as low as 1451.432 on Monday March 16th as the U.S. Dollar Index continues to rise (DXY) is trading around 99.50 rising close to 1.50% from yesterdays close.
EUR/USD on a Daily TF has broken below 1.10 and currently trading around 1.09793. The price has broken below 13, 48 and 200 EMA. MACD has made a bearish intersection, bearish MACD histogram has appeared, Parabolic SAR is pointing down.
Resistance: R1 48EMA 1.10660, R2 1.10, R3 23.6% Fibo 1.11639.
Support: S1 1.09500, S2 1.08987, S3 1.08720.
GBP/USD on a Daily TF continues its ascend down, currently trading around 1.20854. Bearish MACD histogram is increasing. 48EMA is approaching 200EMA for an intersection down. RSI oversold 23.38. Cable is trading at August - September 2019 lows as support.
Resistance: R1 1.22, R2 1.22720, R3 1.24
Support: S1 1.20784, S2 1.20143, S3 October 2016 low 1.19048.
USD/JPY on a Daily TF is attempting to break above 13 EMA, currently trading around 106.870. MACD is at the brick of an intersection to the upside. Parabolic SAR is pointing up.
Resistance: R1 107.095, R2 107.651, R3 48EMA 108.214.
Support: S1 106.500, S2 105.855, S3 105.00.