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Trading plan on EUR/USD for Feb 5, 2020
The coronavirus epidemic in China continues to spread at a high rate:
As of Wednesday morning, there are already 24,000 infected (+20% to the previous report) and 490 dead (also +20%).
As long as the rate of the epidemic’s spread remains so high, this topic will remain as the main threat to both the world economy and the markets. Given the role of China in the world economy, there is a huge chance that the epidemic in China will cause a global recession. For instance, the oil consumption in China has already fallen by 20%, and oil has fallen below $ 50.
In the foreign exchange market, the crisis in China plays a role in the strengthening of the US dollar as a protective asset.
Thus, the US market rose on Tuesday.
Meanwhile, on Wednesday, the US employment report from ADP will be released at 14:15 London time.
EUR/USD range:
Sell when the price breaks 1.0990 downwards.
Buy when the price breaks 1.1100 upwards.
The material has been provided by InstaForex Company – www.instaforex.com
