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Oil Plummets on OPEC Feud. Price Gaps Everywhere.

   

Welcome to this week’s Market Blast Fundamentals where we will look at EURJPY, EURCHF, the Nikkei (JP225), AUDJPY, USDCAD, UK Oil (Brent Crude), and US Oil (WTI).

Saudi Arabia and Russia could not come to terms to protect against the lack of demand caused by the Coronavirus and Oil prices fell dramatically.

Screenshot 2020-03-09 at 09.48.43

 

We have to look at the weekly charts to see prices so low, from 2016, and analysts feel prices could go lower.

Of course, this affects Forex and Comdolls like USDCAD and we have to look at the weekly chart to see the Canadian Dollar so weak, from late 2018 and early 2017.

Screenshot 2020-03-09 at 09.50.00

 

One of the worst casualties was AUDJPY which crashed to 11 year lows and we have to use the monthly chart to see lower prices from 2008.

All stock markets crashed as well with the Nikkei, for example, gapping to the downside to levels from late 2018.

Due to the equities “sell-off”, the Euro is still getting stronger except against the safe haven currencies - the Japanese Yen and Swiss Franc.

This may provoke the European Central Bank to follow the US and Canada to lower interest rates this week so watch your economic calendar.

Also, watch the Crude Oil Inventories which will affect USDCAD and the Canadian crosses, and UK Manufacturing and GDP.

This may not be a good week to “trade the gap”, and that’s all for now. Happy trading with Valutrades and we will see you tomorrow.

CFDs and FX are leveraged products and your capital may be at risk.

Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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