FX Thoughts on Coronavirus

30 Mar 2020

High volatility of the Forex market brings traders back. What would be my advice to them?

Stay away from the market.

• The economic damage is unknown
  
• Helicopter money and bazooka bond buying can have unexpected effect
  
• Technical levels are broken
  
• No interest rate advantage for the UUS dollar
  

How to trade now?

• Don't trade. But if you are still tempted...
  
• Trade from important levels - monthly highs/lows and psychological levels
  
• Don't be against the momentum
  
• If the sell-off in the stocks continues, buy the UUS dollar and sell commodity currencies NZD and AUDEURUSD