Riskier Assets Vulnerable Here's Why

In the G10 FX Market, USD and JPY are the top gainers today while AUD and NOK are the top losers, down -1.59% and -1.44% versus the dollar, respectively. The dollar gained broadly on Wednesday on rising concerns that the damage on the economy from the coronavirus pandemic will be arduous, and long. The safe-haven currencies were buoyant after a few days of losses on positive sentiments. In our view, any strength in riskier assets is likely to be followed by further falls as economic pain is still far from the peak.

In the rates market, global yields were trading weaker with the US 10-year yield down -6.0bp trading at 0.69 and the German 10-year yield trading lower by -3.8bp around -0.415. The European equities were trading mixed with the FTSE -0.56% at 5810.01, DAX 1.08% at 10678.5, and Euro Stoxx 5 0.59% at 2909.8. Elsewhere, the S&P 500 futures were down -1.29% at 2806.38. In the Asian Session, Equities markets traded weaker with the Nikkei down -0.55% at 19531.5, and the Hang Seng down -1.65% at 24032.5 In the energy space, the Brent (front month) is trading down (-5.34%) for the day at $28.02.

10-year Yields Daily Chart (6-month)

Daily FX Pivots

Brent Crude Daily Chart (1-month)

(Content and Data by Tradermade)

Forex Chart and Technical Analysis

EURUSD Chart (Two-week)

Strategy: Resistance at 1.0958 for 1.0875
Short-term view: EUR/USD MACD and RSI are flat but resistance comes in at 1.0958 and we see a dip to 1.0875 enter at 1.0935. Above 1.0958 to open 1.1013

GBPUSD Chart (Two-week)

Strategy: Resistance at 1.2539 for 1.2450
Short-term view: GBP/USD MACD and RSI are flat but resistance comes in at 1.2539 and we see a dip to 1.245 enter at 1.252. Above 1.2539 to open 1.2593.

USDJPY Chart (Two-week)

Strategy: Resistance at 107.67 for 106.88
Short-term view: USD/JPY MACD and RSI are flat but resistance comes in at 107.67 and we see a dip to 106.88 enter at 107.41. Above 107.67 to open 108.12.

AUDUSD Chart (Two-week)

Strategy: Resistance at 0.6394 for 0.6322
Short-term view: AUDUSD resistance comes in at 0.6394 MACD and RSI have a bearish bias. Hence, we see a dip to 0.6322 enter at 0.637. Above 0.6394 to open 0.6419.