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COVID-19 Infected tops 350K. U.S. in 3rd place on number of infected. Governments continue to pump liquidity. EUR/USD, GBP/USD, USD/JPY

Mar 23 2020, 09:31 PM (BDT) |

The coronavirus outbreak comes at a very unfortunate time when the global economy has already been hit with a slowdown from the US-Sino trade war. The United States is now in third place on the number of infected following China and Italy. According to Johns Hopkins University, the global number of infected has surpasses 350,500 and the death toll has exceeded 15,000. President Donald Trump announced a 15-day plan last week that encourages people to stay at home and self-distancing which ends on March 31st. According to Bloomberg, President Trump is concerned about the economy and considering reopening the nation as soon as possible.

In Europe, Italy cremains on lockdown with the number of lethal cases increasing. German Chancellor Angela Merkel is on self-quarantine after coming in contact with a doctor that later tested positive for COVID-19. It does seem that out of the European Union, Germany is best prepared for the outbreak financially, as far as budget surplus.

In the United Kingdom, citizens are not taking self-isolation seriously and continue to travel and crowd gather, as a response Prime Minister Boris Johnson is considering taking more serious measures to help contain the virus with possible national lockdown. Governments all over the world continue to pump liquidity to help their economies stay afloat. The United States Federal Reserve has pledged to purchase an unlimited amount of bonds and governments continue to provide stimulus to keep lending costs low. The markets have responded with curbed and short-lived optimism, as the end of the pandemic is not in sight yet.

EUR/USD on a Daily TF created another low, dropping below the global trend line down from April 2018. The pair reached 1.06359, then touched resistance at 1.08300 and currently trading around 1.08030. Bearish MACD histogram has decreased.

Resistance: R1 1.08300, R2 1.09100, R3 1.09500 before reaching 1.10.

Support: S1 1.07779, S2 1.07, S3 1.06527 before reaching 1.06359.

GBP/USD on a Daily TF touched 1.17 resistance and currently the pair is trading at 1.16 support. Bearish MACD histogram has decreased.

Resistance: R1 1.17, R2 1.18715, R3 1.20560.

Support: S1 1.15059, S2 1.14098, S3 1.13.

USD/JPY on a Daily TF touched the global trend line down from May 2015 as support then bounced up to 111.250 and currently trading around 100.800. Bullish MACD histogram has increased. 13EMA is approaching 48EMA for an intersection up and 48EMA is approaching 200EMA for an intersection up.

Resistance: R1 111.250, R2 112.092, R3 112.610.

Support:  S1 110.175, S2 109.577, S3 109-108.837 (200EMA)

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