ridethepig | Fading euro rallies into 1.108x

The euro finding more demand overnight with Italy behaving and looking for help on the fiscal side. Risk markets are cooking a s/t rebound via co-ordinated global policy intervention; by no means is this the end of the virus but the underlying negative tone we have been witnessing across mainstream media is starting to soften this week.

Global Central Bank co-ordinated policy action will be enough to keep risk markets elevated in the short-term and allow for a temporary rebound in risk (markets are now pricing -75bps from FED ... insane !!!). I am fading rallies in EURUSD today at 1.108x, markets have gone overboard in my books on FED cuts, the impact on global growth is still going to weigh on European data going forward. The lows are currently locked by the support at 1.097x, should we lose it then it will expose them and 1.06-1.05 underneath!

Those who traded the leg in USDJPY will be able to pull the trigger again at 109.2x:

https://www.tradingview.com/chart/USDJPY/zTnqeDhD-ridethepig-JPY-Market-Commentary-2020-02-26/

Risk markets are starting to form a temporary floor via BOJ stepping in and suture the wound. Volatility is set to remain high for the coming days, Asian stocks finding a bid from the usual dip buyers while USDJPY has started to bounce from last week’s move. Looking to sell any rallies into 109.2x as we have not seen the end of the storm in currencies yet.

Best of luck all those in G10 FX over the coming sessions, thanks for keeping your support coming with likes, comments, charts and etc!!