By IFCMarkets
Fed supported markets
US stocks may rise thanks to the Fed’s decision to buy short-term corporate debt directly from companies. Thus, it intends to reduce credit risks and stabilize financial markets that are under pressure due to the COVID-19 coronavirus pandemic. For the first time, such a mechanism of the redemption of corporate bonds by the Fed was tested at the peak of the global economic crisis of 2008 and proved to be quite effective. Then the stock indices actively bounced up. In turn, gold is declining amid appreciable demand for dollars. As a rule, quotes of the American currency and precious metals are moving out of phase. In addition, a small liquidity shortage may now be a negative factor for gold. It arose due to the fact that many companies suspended their work against the background of quarantine in a number of countries and are not receiving proceeds.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Sell | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 0.58 |
| Stop loss | Below 0.652 |
Market Analysis provided by IFCMarkets
