Capitulation of the oil market?

By 19/03/2020News
Morning Stock News

Gold   1473,82
(-0,76%)

EURUSD   1,0905
( -0,25%)

DJIA   19443,50
(-3,84%)

OIL.WTI  23,42
(-0,13%)

DAX   8454
(+ 0,04%)

Optimists think there’s nowhere else for oil to fall. And the pessimists (shorts and oil producers) continue to sell it in huge volumes. On Wednesday, WTI oil fell by another 20%, reaching a low of $20 per 1 barrel.


Chart of the Day GBP/USD

Chart of the Day GBP/USD


OIL

In theory, black gold has somewhere else to fall. There are huge surpluses of physical oil in the markets, which nobody buys. Owners are forced to store it in tankers, the cost of freight which has increased by 5-10 times in just one month.


Pound

Yesterday we were looking at a significant event on a monthly timeframe in the Australian dollar/US dollar pair. Today, on the same timeframe (chart above), no less significant event. The pound/dollar broke the lows, which were shown in 2016 after the referendum on Brexit. And then there is not just an abyss, but abyss without a bottom, the pound has never been so cheap..


Canadian Dollar

But there is another very interesting chart in the Australian dollar/Canadian dollar pair. What do we see on a monthly timeframe? The price has approached the highs of the panic in 2016, and behind them there is a new huge gap. On Thursday, at this level, there will be a huge battle of bulls and bears and another blood will spill.


Bitcoin

For the third day in a row, we draw our subscribers’ attention to the first cryptocurrency. It persistently refuses to fall further against the U.S. dollar, while all assets fall against the dollar. The absurdity is that this very crisis can give cryptocurrencies a powerful boost in terms of human acceptance, which has been so lacking for the last 2 years.


What’s waiting for us today?

00.50 Monetary Policy Committee Meeting of the Bank of Japan
01.30 Employment rate in Australia for February
09.30 Swiss National Bank interest rate decision
13.30 Initial claims for unemployment benefits in the USA


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