Market volatility soars as coronavirus spread globally
Investors moved into panic mode this week as the coronavirus continued to spread globally, with over thirty countries outside of China reporting new cases. The Dow Jones Industrial Average plummeted by over ten percent this week, while the VIX, a measure of market volatility spike by over forty percent. The major US indicies wiped-off their gains for the year, while the price of WTI oil slumped below the $50.00 level. Traders and investors feared that the global spread of the coronavirus could cause supply-chain shocks and move the global economy could move into a recession.
- The USDJPY pair is only bullish while trading above the 110.30 level, key resistance is found at the 111.50 and 112.40 levels.
- If the USDJPY pair trades below the 110.30 level, key support is located at the 109.70 and 108.90 levels.
Bitcoin suffered its worst weekly sell-off of the year so far, as the number one cryptocurrency crashed towards the $8,500 support level. Bitcoin failed to act as safe-haven this week, despite many analyst speculating that the cryptocurrency is now a form of digital gold. The BTCUSD pair was strongly rejected from the $10,000 level in early week trading, and eventually slumped to its weakest level since late-January. Bitcoin also suffered from bearish fundamental news developments as the US Securities Exchange Commission rejected another Bitcoin ETF proposal.
- The BTCUSD pair is only bullish while trading above the $9,500 level, key resistance is found at the $10,000 and $10,500 levels.
- The BTCUSD pair is only bearish while trading below the $9,500 level, key support is located at the $8,500 and $8,200 levels.
Altcoins suffered a heavy sell-off this week, with almost all of the top-50 coins incurring double-digit weekly losses. Ethereum slided towards the $200.00 support level, as the second-largest cryptocurrency followed Bitcoin lower. Litecoin was one of the worst-performing cryptocurrencies inside the top-10, as the LTCUSD pair briefly slumped below the $60.00 level. The total cryptocurrency market capitalization fell towards the $230 billion, erasing around $60 billion in value since the start of the week.
- The ETHUSD pair is only bearish while trading below the $235.00 level, key support is found at the $215.00 and $195.00 levels.
- If the ETHUSD pair trades above the $235.00 level, buyers may test towards the $255.00 and $290.00 resistance levels.
Gold and silver both experienced significant markert volatility this week, as traders and investors moved into safe-haven asset classes. Gold soared towards the $1,700 level in early week trading, as the yellow-metal surged to its highest trading level since January 2013. Profit taking caused gold to fall back towards the $1,600 level, although dip-buyers soon moved in from bargain levels. Silver also enjoyed strong buying demand, rallying towards the $19.00 level, and cementing its place as a safe-haven in times of uncertainty.
- The XAUUSD pair is only bearish while trading below the $1,610 level, key support is found at the $1,554 and $1,540 levels.
- If the XAUUSD pair trades above the $1,610 level, buyers may test towards the $1,650 and $1,690 resistance levels.