FX.co ★ Analysis for Gold 03.16.2020 - Downside target reacehd at $1.489 but strong selling pressure is still present and new target is set at $1.400

Corona virus news:

The Federal Reserve slashed interest rates to near-zero and unveiled a sweeping set of programs — including plans to snap up huge amounts of government and mortgage-backed debt — in an effort to backstop the United States economy as the spread of coronavirus poses a dire threat to economic growth.

"The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States," the central bank said in a statement on Sunday. "The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses."

Technical analysis:

Gold did continue with the downside pressure as I expected. Our downward target at the price of $1.489 has been tested. It still stron selling pressure and the recommendation is to watch for selling opportunities on the rallies with the next downward targets at $1.449 and $1.400.

The BTC did break the lower Pitchfork parallel line and is heading to test the warning line 1.

MACD oscillator is showing new momentum down, which is strong sign of the bearish pressure.

Resitance levels are set at the price of $1.507

Support levels and downward targets are set at the price of $1.449 and $1.403.