Forex Market Weekly Preview – Massive Drop in Oil Prices

In today’s forex market weekly preview, the price of crude oil declined by more than 30% during the Asian session. This was the lowest level in four years.

9 March 2020 | AxiTraderUSOIL had a massive gap lower at today´s market open following Saudi-Arabia´s decision to increase output despite reduced demand and therefore triggering a price war.

USOIL Price Analysis

Usually, such weekend gaps are eventually filled, but in current market conditions, it might take much longer for such a bounce to occur. As the monthly chart shows, the next major support is around $27.30.  On the topside, however, resistance is seen between $39.50 and $40.

USOIL Monthly, Source: AxiTrader

USOIL Monthly, Source: AxiTrader

USD/JPY Under Intense Downside Pressure

Meanwhile, USD/JPY has found itself under strong pressure as investors remain highly risk-averse and are fleeing into safe havens. Lower rate expectations in the US are weighing on the Greenback also. Furthermore, looking at the Monthly chart, traders can expect strong support at the 50 % Fibo of the 2011-2015 rally, which lies around $100.78, followed by the psychological support level of $100. On the upside, the pair will meet resistance at $104.60, followed by $105.

USDJPY Monthly, Source: AxiTrader

GER30 Breaches Support

GER30 has breached another major support level overnight at 11,000 points, paving the way for further losses. A test of 10,850 support looks increasingly likely in the near-term, and DAX bears see the 2018 low at 10,266 points as the next significant target. To the topside, however, traders will be keeping an eye on the 11,255 resistance level, followed by 11,413 points.

GER30 Weekly, Source: AxiTrader


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