Site map
العربية Български 中文 Čeština English Français Deutsch हिन्दी Bahasa Indonesia Italiano Bahasa Malay اردو Polski Português Română Русский Srpski Slovenský Español ไทย Nederlands Українська Vietnamese বাংলা Ўзбекча O'zbekcha Қазақша

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
cabinet icon

InstaForex – always at the forefront!Open a trading account and become a part of the InstaForex Loprais Team!

Success history of the team headed by Ales Loprais can become your success history! Trade confidently and head towards leadership like regular participant of Dakar Rally and winner of Silk Way Rally InstaForex Loprais Team does it!

Join in and win with InstaForex!

Instant account opening

Get a letter of instructions
toolbar icon

Trading Platform

For mobile devices

For trading via browser

Long-term review

The financial markets are again obeyed by the Fed, and any good news is overshadowed by a huge negative. Against this backdrop, the best weekly S&P 500 rally since 1974 should not surprise anyone. The stock index is rapidly reducing losses, ignoring the growth in the number of infected and died from coronavirus in the United States and in the world, the increase in the number of applications for unemployment benefits by 17 million in three weeks, the pessimistic forecasts of Wall Street Journal experts, who expect to see a 25% decline in US GDP in the second quarter, a rise in unemployment to 13% and a reduction in corporate profits by 36%. American stocks do not care, because if you do not have time to buy them now, you can be late.

History shows that stock indices usually recover faster than national economies, which is not surprising: GDP is a lagging indicator, and the S&P 500 is growing on expectations of a positive. According to the chief economic adviser to the US President Larry Kudlow, the US economy will need 4-8 weeks to return to normal operation at full capacity. Donald Trump would like to see its explosive growth. Together with moderate optimism from the New York city administration about the gradual release of coronavirus to the plateau, this creates a stir among buyers of equity securities. The growth of global risk appetite puts pressure on safe-haven assets, so we should not be surprised by the strengthening of EUR/USD.

Dynamics of the S&P 500 and EUR/USD

Exchange Rates 10.04.2020 analysis

The euro was supported by the decision of Eurozone Finance Ministers to collectively help the countries of the currency bloc affected by the epidemic in the amount of €500 billion, as well as a split in the ranks of the ECB. According to the minutes of the March meetings of the Governing Council, a number of officials opposed the lifting of restrictions on bond purchases under QE. They suggest launching a new direct funding program for OMT for individual states.

The idea of selling the US dollar in the long run looks interesting. The growth of the Fed's balance sheet to $9-12 trillion by the end of 2020 and the expansion of the US budget deficit to $3.6 trillion in the current fiscal year, which will end on September 30, are "bearish" factors for the USD index.

On the short-term time horizon, against the background of good news from the Old World and the rally of US stock indices, the overall picture for the main currency pair is moderately optimistic. However, at any moment, the scales can swing in the direction of the "bears". It is enough to know that the G7 countries did not support the efforts of OPEC+ to reduce oil production. The growth of Brent and WTI on expectations of a 15 million b/d decline supported the shares of US oil companies and the S&P 500. If it stops, the stock index will go down and pull EUR/USD.

Technically, the pair plays a combination of "Expanding Wedge" and "Rhombus" patterns. A break in the diagonal resistance near 1.0965 will be a signal to open long positions in the target by 127.2% using the AB=CD pattern. It is located in close proximity to the mark of 1.121. On the contrary, a successful storm of support at 1.0765 will cause the euro to sell against the US dollar in the direction of 1.05.

EUR/USD, the daily chart

Exchange Rates 10.04.2020 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Marek Petkovich,
Analytical expert
InstaForex Group © 2007-2020
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Widget calback
Our specialist
will call you back
in five minutes
We will navigate you
through the website and
answer all your questions!
Preferred Type of Connection
Preferred language
  • English
  • Русский
  • العربية
  • Bahasa Indonesia
  • Bahasa Melayu
  • বাংলা
  • Български
  • 中文
  • Español
  • हिन्दी
  • Asụsụ Igbo
  • Português
  • اردو
  • ไทย
  • Українська
  • Tiếng Việt
  • Èdè Yorùbá
A call-back request was accepted.
Our specialists will contact you as soon as possible.
An error occurred.
Please try again later.
Can't speak right now?
Ask your question in the chat.