Welcome to another live trading session. In today’s trading session we went over the severe impact the Coronavirus has caused on the markets and what pairs to trade to benefit the current situation.
Over the weekend we had more and more countries become affected by the Coronavirus. Iran is said to be hiding over 50 deaths caused by the virus, but are currently reporting 12. Italy has had it’s 6th death since the Coronavirus has spread to Europe. The situation is getting considerably worse as the confirmed cases have gone up to 79,000. The Forex market has rightfully reacted to this ongoing concern. We saw considerable gaps to the downside for Australian pairs. We also saw safe-havens such as the Swiss Franc, Japanese Yen, and XAUUSD(Gold) acquire strength.
Based on this information, and the likelihood that the Coronavirus will not be something that will blow over, we have decided to continue to hold our AUDUSD swing short. We are currently at entry, after hitting our first intraday level. This is a trade that can take the rest of the quarter to complete. We then spot an intraday short for USDCHF. The Swiss Franc will continue to garner strength during these times of chaos and we elect to take advantage of this when USDCHF breaches 0.97570.
Many of the gaps in the markets have yet to be filled and so we should give the markets some time to get a sense of direction. It is rare for us to enter trades on a Monday, but we may have a solid opportunity to enter USDCHF later in the day. The fundamental schedule for this week is fairly bleak, and therefore our trading should be smooth-sailing. With that being said, I will see you all tomorrow for another live trading session. As always, be safe and trade responsibly.
Check Out Friday’s Blog Post: February 21th, 2020
