What are the Implications of the Coronavirus Being a Pandemic?
According to the WHO, it classified the coronavirus as a pandemic because the disease has spread globally. With this new label, the international health organization hopes that governments would step up their efforts in battling the disease.
As for currencies, the majors were mixed in today’s trading. The dollar is weakest against the yen as USDJPY is currently trading 0.88% lower at 103.61. Meanwhile, EURUSD is up by 0.35%. Against the Aussie, the dollar is stronger.
On the hourly chart, it can be seen that AUDUSD has made lower highs and steady lows this week. It can even be argued that a descending triangle has materialized. However, a closer look at the recent price action of AUDUSD suggests that support at the bottom of the triangle has been broken. In forex trading, this break is considered as a sign that there is more selling ahead. If there are enough sellers in the market, the next floor for AUDUSD could be at 0.6301 where it dropped following the news of an oil price war on Monday.
Alternatively, if this break turns out to be a fakeout, we could see the currency pair trade higher. Near-term resistance is at 0.6535 where AUDUSD topped in yesterday’s trading.More content