We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • China sets the Yuan reference rate vs #USD at 7.0477 (BBG)
  • South Korea coronavirus death toll rises by 6 to 158 following reports that the country had confirmed 78 more additional cases, bringing the total to 9,661 (BBG) #USDKRW #covid19
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/skDq5iLemR
  • Singapore MAS eases policy and reduced the currency band slope to zero. (BBG) Learn more about how to trade #USDSGD here - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/03/The-Singapore-Dollar-and-MAS-What-is-SGD-and-How-to-Trade-it.html
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/2:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/x0FHuNIsJ5
  • RT @JPan_IG: SINGAPORE CENBANK SAYS MAS WILL ADOPT A ZERO PERCENT PER ANNUM RATE OF APPRECIATION OF THE POLICY BAND STARTING AT THE PREVAIL…
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/yF133btXFd https://t.co/rUp1G9zzxj
  • #SPX futures down over 1.5% too, echoing risk-off bias https://t.co/Z0n4L156tl
  • MARKET SNAPSHOT: #ASX200 modestly higher in early trade but #Nikkei futures down over 2.5% before Tokyo trading open. #USD and #JPY leading the way higher in G10 FX, hinting at risk-off tilt, but #AUD and #NZD recovering from earlier losses
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/Nij6senHVx
VIX Spikes to Crisis Levels as Markets Crater to Coronavirus Fears

VIX Spikes to Crisis Levels as Markets Crater to Coronavirus Fears

2020-03-12 17:00:00
James Stanley, Strategist
Share:

VIX, S&P 500, US Dollar, EUR/USD, USD/CAD Analysis

  • It’s been a brutal day across global risk markets.
  • Coronavirus continues to spark pandemic fears, and related economic slowdowns have become more-and-more likely as the virus has yet to be contained in a number of major economies.
  • VIX, often referred to as the ‘fear gauge,’ has spiked to levels not seen since the Global Financial Collapse.

VIX, USD Spike as Fear Drives Global Markets

It’s been another big day of moves across global markets and today appears to be somewhat of a turning point. The S&P 500 is now officially in bear market territory following another limit-down move ahead of the US equity open. The VIX, often referred to as the ‘fear gauge’ around the S&P 500 has rushed up to its second highest level ever, trailing only the run that showed during the Financial Collapse. Bond markets remain in disarray and global governments are still shuffling around in an attempt to find a solution to quell the spread of Coronavirus.

To date, no lasting solutions have yet shown.

Another sizable move has shown in the US Dollar with the currency spiking to go along with this morning’s risk-off moves. As covered by our own Justin McQueen earlier this morning, US Dollar funding is sending a distress signal across global markets, with another strong move showing after this morning’s European Central Bank rate decision.

The US Dollar has gained approximately 1.7% today, adding on to the prior bullish move to total a 3.89% move from this week’s low.

US Dollar Daily Price Chart

US Dollar Daily Price Chart

USD on Tradingview

Volatility Levels Hit ‘Extreme’ Territory

The VIX index is trading just under the 70-level, which marks the second highest reading ever, rivaling only the Financial Collapse.

VIX Monthly Price Chart

VIX Monthly Price Chart

VIX on Tradingview

As looked at earlier this morning, equities have already put in a profound move; rushing into ‘bear market’ territory after the longest bull market in recorded history. My colleague, Austin Sealey, took a wide look at the matter, incorporating some global equity indices. Perhaps more troubling, there’s little evidence to suggest that the sell-offs are yet over.

At this point, the S&P 500 has caught a bit of support around the 2500 psychological level, which is helping to stem the declines, at least for now.

S&P 500 Hourly Price Chart

SPX500 SPY ES Price Chart

SPX500 on Tradingview

Back to the FX-world, EUR/USD is putting in an outsized move this morning after the European Central Bank rate decision, furthering the fall from the 1.1448-1.1500 resistance zone looked at earlier this week.

EUR/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% 9% 7%
Weekly -28% 36% 0%
Current EUR/USD Retail Sentiment
Get My Guide

EUR/USD Daily Price Chart

EURUSD Price Chart

EUR/USD on Tradingview

Not to be lost in the shuffle and perhaps better illustrating that rush into the US Dollar, USD/CAD has jumped up to a fresh four-year high; covered earlier in the day by my colleague, Michael Boutros.

USD/CAD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 21% -1% 6%
Weekly 10% 3% 5%
Current Retail Sentiment in USD/CAD
Get My Guide

USD/CAD Weekly Price Chart

USDCAD Weekly Price Chart

USD/CAD on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.