Daily Market Charts and Analysis March 20, 2020

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

USDCHF

Things are looking pretty good for bulls as the US dollar is widely expected to continue strengthening in the foreign exchange market. It’s shown in the chart that the 50-day MA and the 200-day MA hasn’t separated significantly for months, suggesting the tight thug of war faced by bulls and bears. Obviously, the US dollar isn’t relying on economic activities to support its rally. Instead, it’s been thriving due to the strong risk appetite for it. Recent reports from the United States such as the core retail sales, retail sales, building permits, current accounts, initial jobless claims, and the Philadelphia Fed manufacturing index all recorded negative results. Just yesterday, it was reported that the Swiss National Bank announced that it will be leaving its monetary policy and interest rates unmoved for the time being. The SNB’s official rates currently stand at -0.75% as expected by economists. The move prevented the franc from easily collapsing against the dollar.

USDINR

After the Indian rupee fell to record lows against the US dollar in the previous trading, bears reeled in an forced the pair lower. Still, the US dollar’s strength is overwhelming the Indian rupee, preventing it from making a full recovery. The 200-day moving average is still seen trading slightly above the 50-day moving average, signaling that bulls haven’t fully controlled the direction of the pair yet. In fact, the greenback is seen surging against most major currencies in the market, not just the Indian rupee. Traders of the US dollar are depending on the fight of the financial market to crack down the pressure and impact brought by the coronavirus pandemic to the global economy. Also, the rising number of COVID-19 cases in India is adding more weight on not just the Indian rupee, but also the country’s stock market. Bears are hoping that Indian Prime Minister Modi will release stimulus soon to help tackle the massive headache brought by the pandemic.

USDCZK

Forecasts of a negative gross domestic growth for the Czech Republic has pressed immense pressure on the Czech koruna. And with the robustness of the greenback showing through, the pair is believed to reach its resistance level by the first few days of April. Looking at the two moving averages in the chart, both the 50-day MA and the 200-day MA are trading close to each other. This indicates that bullish traders haven’t really had a firm grip on the USDCZK pair. Undoubtedly, there is still plenty of room for losses for the Czech koruna as the country’s economy is under pressure. Economists are revealing their poor projections and prospects for the Czech economy. However, it could be minimized as investors of the koruna are waiting for interference from the Czech National Bank to support the economy. It’s believed that the Czech economy will fall into a recession this 2019 because of the deadly novel coronavirus’ impact.

EURCHF

The single currency has seen a “considerable” decline according to the European Central Bank. And the question of whether Christine Lagarde and the rest of the monetary policymakers of the ECB could save the euro stands as a widely asked question in the market. The safe-haven appeal of the Swiss franc may not have worked well against the dollar, it has made significant dents to the common currency. Looking at the pair, the 50-day moving average is still above the 200-day moving average. This lightens the burden and concerns of bulls in the market. The lockdown and stay-at-home quarantine situation faced by the region has greatly weighed on the euro and has disrupted the economic activity of the bloc. In fact, one of its biggest economies, Italy, is now the most COVID-19-impacted country as it surpasses the death toll from mainland China. Unfortunately for Italy, its southern region is expected to have a massive spike in cases soon.