FX.co ★ Trading plan for EUR/USD on March 9, 2020. Euro has reached 1.1495. Oil, on the other hand, fell below $30. Is the big crisis already with us?

Euro opened with a large gap upwards, reaching almost 1.1500 (or rather 1.1495). However, it is rolling back now.

The reason? Panic in the markets regarding the coronavirus and oil.

Update on the virus: the rate of spread outside China is still fast. More than +10% new cases are recorded per day.

As of Monday morning, there are 28,000 coronavirus patients outside of China. More than 4,000 of those are new cases.

Main foci: South Korea (7,400 patients), Italy (7,400 patients), and Iran (6,700 patients).

France has now 1,000 patients, while Germany has 900.

In Italy, a full quarantine has been introduced to a region with 17 million inhabitants.

Oil

Oil showed a huge drop, going below $ 30 / barrel.

The decline was due to the panic over the epidemic, as well as on Saudi Arabia starting a price war against independent suppliers (not OPEC members). Russia is the first one in it, as the country refused to cut oil production together with OPEC. In response, Saudi Arabia announced that it is reducing prices and increasing production, and the result is clearly visible on the oil chart above.

EUR/USD: the pair is in an upward trend.

Keep buying from 1.1100.

We are waiting for a strong correction. Buy from 1.1160