The US Federal Reserve cut the key rate immediately by 0.5% after President Trump criticized the regulator for being too slow in this matter. An interesting reaction came from the US stock market. Despite this decision, the leading indices declined.
Oil traders are waiting for the first decisions of the OPEC cartel. Yesterday, representatives of the energy sectors of the organization’s member countries began to meet in Vienna. Recall that the market expects OPEC to decide on a reduction in raw material production, but this may not happen.
Currencies & Commodities
Current trading of Brent will determine the direction of a breakdown of the emerging “triangle”, whose upper boundary is the beam of the Fibonacci fan. Since the more likely scenario for the development of the situation is the reduction of oil production by OPEC countries, traders will also be more prone to purchases.
AUD/USD is likely to continue the uptrend, as the asset does not have closely spaced resistance levels. In addition, a decrease in the US Federal Reserve rate by 0.5% may immediately undermine the position of the US Dollar.
A false breakdown of the support level of 2.03500 GBP/NZD pair indicates the likely start of a bullish trend.
NZD/JPY turned from a strong support level of 67.00. Investors may still have time to join the fresh uptrend.
USD/CAD may continue the uptrend as the asset chart has broken down the resistance level and is now in the zone favorable for purchases.
Summary: The rate cut has led to a deterioration in the position of the US dollar, but may help resume an advance in the stock markets.
BMW yesterday reported lower sales in China due to the coronavirus epidemic. We recommend that you stick to the downward in transactions today.
The S&P 500 may return to a local maximum of 3125.