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Technical Analysis – USDCHF sustains a negative formation despite recent gains

Posted on July 16, 2020 at 1:05 pm GMT

USDCHF improved recently in an established negative structure and is tackling the 0.9457 level, that being the 61.8% Fibonacci retracement of the up leg from 0.9182 to 0.9900. Further backing the negative picture are the declining simple moving averages (SMAs). However, in spite of the prevailing negative charge within the Ichimoku lines, they reflect a stall in the descent, while the short-term oscillators signify strengthening positive sentiment. The MACD, in the negative region, has pushed above its red signal line, [..]

Technical Analysis – EURJPY rises above uptrend line in short term

Posted on July 16, 2020 at 12:46 pm GMT

EURJPY has been in an ascending move since June 19 in the short-term, surpassing the 23.6% Fibonacci retracement level of the up leg from 114.40 to 124.45 at 122.08. The short-term bias looks positive as the RSI keeps gaining ground above the 50 level, while the stochastic seems to be making its way up after the bounce off the 20 level. The 122.50 resistance could be a trigger point for steeper bullish action. Even higher, resistance could run towards the [..]

Daily Market Comment – Dollar edges up, stocks slip as recovery doubts set in

Posted on July 16, 2020 at 8:51 am GMT

China’s GDP bounces back but signs of uneven recovery dampen sentiment White House’s tough line on China also a drag on risk assets Euro softer ahead of ECB; Stocks eye US earnings and retail sales for direction China returns to growth but weak spending worries markets As far as V-shaped recoveries go, China’s economic recuperation from the coronavirus couldn’t look more V-shaped. Gross domestic product (GDP) jumped by 11.5% over the quarter to June after collapsing by almost 10% in [..]

Technical Analysis – WTI futures flash dwindling signs in the climb

Posted on July 16, 2020 at 8:35 am GMT

WTI oil futures are clearly demonstrating signals of waning positive sentiment despite an intact positive bearing. The slight flattening in the positively charged Ichimoku lines further backs this view. Noteworthy are the conflicting trajectories in the simple moving averages (SMAs), which may aid and extend consolidation in the commodity in the near-term. Taking a look at the short-term oscillators, positive momentum appears to have disappeared. The MACD trails below its red trigger line in the positive zone, while the RSI [..]

Technical Analysis – AUDUSD tries to revisit 1-year high

Posted on July 16, 2020 at 7:24 am GMT

AUDUSD has been slowly ascending after the rebound on the 0.6800 support, jumping above the short-term 20-day simple moving average (SMA). The price is approaching again the almost one-year peak of 0.7067, searching for new upside adventures. Also, the stochastic oscillator is confirming this view as it is reversing north and has yet to reach overbought levels. In the positive scenario, a jump above the 0.7030 level could find immediate resistance at the 0.7067 barrier before moving towards the 0.7205 – 0.7295 zone. Alternatively, a decline beneath the 20- and [..]

Technical Analysis – GBPJPY gradually deteriorates, challenging the 200-MA

Posted on July 15, 2020 at 4:22 pm GMT

GBPJPY appears to have lost steam since peaking at 135.91, despite the bullish tone still present in the simple moving averages (SMAs). Dominating sellers are currently attempting to build negative momentum to decisively close below the 200-period SMA at 134.67. These efforts are also mirrored in the short-term oscillators as the MACD dips below its red trigger line and neutral mark, while the RSI falls below 50. A clear push below the 200-period SMA at 134.67 may encounter initial support [..]

Technical Analysis – AUDJPY holds onto bullish bias but risks further consolidation

Posted on July 15, 2020 at 2:55 pm GMT

AUDJPY hit a one-month high of 75.26 on Tuesday as it continued to increase positive momentum following last week’s bounce off the 20-day moving average (MA). The RSI is currently trending higher above 50 and hasn’t yet reached overbought levels, indicating there is scope for additional gains in the coming days. However, the MACD remains flat despite the recent gains, suggesting it’s too soon to predict an end to the neutral picture in the short to medium term. If the [..]

US retail sales: Outdated good news? – Forex News Preview

Posted on July 15, 2020 at 2:19 pm GMT

America reports retail sales for June at 12:30 GMT Thursday, and while forecasts point to another increase, the data may be seen as outdated already. The outlook for consumption took a severe hit in late June as several states rolled back re-opening plans, so investors will likely wait for July data before drawing any conclusions about the US recovery. As for the dollar, its direction might hinge mostly on risk sentiment, the Fed, and funnily enough, on the upcoming EU [..]

Technical Analysis – Gold moves sideways after extreme rally to 9-year top

Posted on July 15, 2020 at 1:13 pm GMT

Gold prices continued the extreme bullish rally that started on March 20, posting a new nine-year peak of 1,817.89. But the commodity may see an overbought market as the RSI is turning lower, while the MACD is developing near the trigger line at the moment, signalling that the price is heading sideways in the very short-term. The 20- and 40-period simple moving averages (SMAs) and the Ichimoku lines are endorsing a horizontal move. More increases could find resistance at the [..]

China could return to growth in Q2 amid geopolitical bullying woes – Forex News Preview

Posted on July 15, 2020 at 1:13 pm GMT

China releases GDP readings for the second quarter on Thursday at 02:00 GMT along with industrial production for June, retail sales and fixed investment data. All figures are forecast to strengthen, indicating that the world’s second largest economy is recovering albeit gradually after contracting at a record rate. The data could boost risk sentiment, though China’s cloudy political background could be a reason for traders to adopt a wait-and-see approach. China could grow by 2.5% y/y in Q2 China’s GDP [..]

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