Chart of the Day EURUSD, GBPUSD, USDCAD
<h2><span>Chart of the Day EURUSD, GBPUSD, USDCAD</span></h2>
<p><strong>USD Weekly Key Reversal</strong></p>
<p><span>US equities suffered a late-Friday plunge to close 3.4%. On a weekly basis, however, it posted a 10% uptick, which is the biggest gain since 2009. Oil price remains in the doldrums, however, with WTI down 4.8% on Friday to trade at $21.5bbl. American oil producers have been told by a key distributor to scale back production as storage tanks are close to overflowing. News about Covid-19 spread continues to dominate headlines and minds. US top infectious disease scientist said that as many as 200,000 Americans might die from the disease, prompting President Trump to extend federal guidelines to fight the virus, including social distancing, to the end of April. Meanwhile, Treasury Secretary Mnuchin said that cash aid to Americans in the form of direct deposits or checks, as part of the USD2tn stimulus package, will arrive in three weeks. Separately, Congress has reportedly begun discussions for a fourth package, to focus on stronger workplace protections and aid for hard-hit states like NY. </span></p>
<p><span>Over in Europe, while the relative good news is that Italy’s death toll has fallen for a second straight day, the not-so-good news is that Spain’s fatalities continued to inch higher for the third straight day – indicating that the fight is far from over at this point.</span></p>
<p><span>The broad USD capitulated lower from the late London session onwards on Friday, after initial attempts at rallying. The GBP led gains, despite headlines that PM Johnson was tested positive for the virus. The AUD and JPY also saw strong gains, suggesting that the move is a broad based USD weakness, rather than just risk dynamics at play. Overall, the DXY index has retraced about half of the gains seen between the low on 9 March and the top on 20 March.</span></p>
<p><span>On the CFTC front, up till Tuesday last week, non-commercial accounts still built up implied USD shorts, while leveraged accounts moved the other way to increase its net implied USD longs marginally. Longer term plays, asset managers reduced their implied short USD bias for the second consecutive week, but they still sit on large implied short USD positions that have increased compared to pre-COVID levels.</span></p>
<p><img class="aligncenter size-full wp-image-40809" src="http://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34.png" alt="" width="2061" height="1218" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34.png 2061w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34-300x177.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34-1024x605.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34-768x454.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34-1536x908.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.34-2048x1210.png 2048w" sizes="(max-width: 2061px) 100vw, 2061px" /></p>
<p> </p>
<p><span>From a technical & trading perspective the reversal in USD strength last week created its biggest weekly decline in a decade, with the FED offering vast liquidity to the markets the USD funding stress that drove much of the demand witnessed in March has significantly subsided. The DXY, EURUSD, GBPUSD & USDCAD all printed significant key reversal patterns. Dollar bears will be looking for confirmation of last week’s reversal on a breach of last week’s lows on the broad USD Index. Likewise a breach of last weeks highs in EURUSD and GBPSUD will produce a technical buy signal and a breach of last weeks lows in USDCAD will give a technical sell signal</span></p>
<p><span> <img class="aligncenter size-full wp-image-40810" src="http://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31.png" alt="" width="2037" height="1220" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31.png 2037w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31-300x180.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31-1024x613.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31-768x460.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.31-1536x920.png 1536w" sizes="(max-width: 2037px) 100vw, 2037px" /></span></p>
<p><span> </span></p>
<p><span><img class="aligncenter size-full wp-image-40811" src="http://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52.png" alt="" width="2047" height="1222" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52.png 2047w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52-300x179.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52-1024x611.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52-768x458.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.06.52-1536x917.png 1536w" sizes="(max-width: 2047px) 100vw, 2047px" /></span></p>
<p><span><img class="aligncenter size-full wp-image-40812" src="http://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12.png" alt="" width="2041" height="1222" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12.png 2041w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12-300x180.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12-1024x613.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12-768x460.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/03/Screenshot-2020-03-30-09.07.12-1536x920.png 1536w" sizes="(max-width: 2041px) 100vw, 2041px" /> </span></p>
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