Market Report Tuesday 10th of March 2020
Oil bouncing a little bit this morning, but we need to close above the 34 key level to stabilize. Was playing around with numbers this morning and if a 30% drop in the oil price would translate into USDCAD moving up 30%, it should be trading at 1.70. Probably will not go that high, but just a reference point and I think there is move potential upside in that pair.
Russia says that they have not ruled out measures with OPEC to stabilize oil markets.
US equity futures up this morning, but I expect it to run into selling pressure as we have not been able to hold any rally in the last week basically. Remains a sell rally market looks like.
With reference to the Corona virus it looks apparent to me that the lack of testing is causing a big underreporting of the amount of cases in the US.
The credit market is sensitive to moves in oil because a very large portion of high-yield bonds in US are issued by companies involved in energy. Some US shale producers are a on the brink of bankruptcy and that can have a ripple effect on credit markets.
Key points for today:
Happy Trading
Erik – Delta1Trader Technology
Oil bouncing a little bit this morning, but we need to close above the 34 key level to stabilize. Was playing around with numbers this morning and if a 30% drop in the oil price would translate into USDCAD moving up 30%, it should be trading at 1.70. Probably will not go that high, but just a reference point and I think there is move potential upside in that pair.
Russia says that they have not ruled out measures with OPEC to stabilize oil markets.
US equity futures up this morning, but I expect it to run into selling pressure as we have not been able to hold any rally in the last week basically. Remains a sell rally market looks like.
With reference to the Corona virus it looks apparent to me that the lack of testing is causing a big underreporting of the amount of cases in the US.
The credit market is sensitive to moves in oil because a very large portion of high-yield bonds in US are issued by companies involved in energy. Some US shale producers are a on the brink of bankruptcy and that can have a ripple effect on credit markets.
Key points for today:
- WTI Crude oil weak below 34 resistance on daily chart
- USDCAD bullish above 1.3510 support. Resistance at 1.3750 for now.
- Nasdaq looks like a sell on rallies below 8400
- Gold bullish above 1630 support, key res at 1700, need a daily close above 1700 to get this moving higher
Happy Trading
Erik – Delta1Trader Technology