FX Thoughts on Coronavirus
2020.03.30 18:40 GMT
High volatility of the Forex market brings traders back. What would be my advice to them?
Stay away from the market.
- The economic damage is unknown
- Helicopter money and bazooka bond buying can have unexpected effect
- Technical levels are broken
- No interest rate advantage for the $US dollar
How to trade now?
- Don't trade. But if you are still tempted...
- Trade from important levels - monthly highs/lows and psychological levels
- Don't be against the momentum
- If the sell-off in the stocks continues, buy the $US dollar and sell commodity currencies NZD and AUD
7 months, 4 weeks ago