Mixing SP500 with EURUSD is not such a bad idea when COVID-19 broke into our lives. We are facing the dismantling of overvalued stocks and the exacerbated Fed (so far $2 trillion in response to the virus compared to BCE's €750bn). Clearly, these are times of volatility but in my opinion the US has responded late. Mr Trump wants $2 trillion more (so it would be $4 trillion) and their covid19 cases are and will be sky-rocketing for the next 3 weeks. SP500 turns green and every day and VIX is above 2008's crisis levels. That being said and thinking as a common sensed little investor, when I look at the graph above I see investors running away from America (blue) and its currency (EURUSD candles). The sure thing is that technical is telling us to sell until 1.064 or even 1.0563 level (to be reached around April 7). However, if EURUSD hesitates to go below 1.0788 it might be shaping a triangle whose end could be a spike until 1.1148. So watch out your Stop Loss. Final conclusion: Sell for now.
Comment:
*I wanted to say SP500 turns green 1 day and the next day red and so on, lately.