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EU to debate long-term budget: Could euro bulls get the green light? – Forex News Preview

Posted on June 17, 2020 at 3:32 pm GMT

The euro was in the doldrums during the lockdown period until the two largest EU economies came together in support of a new recovery fund which would give out grants, sending the common currency to a three-month high. The amount announced is not significant but perhaps is considered enough to lead to more integration if it is finally approved at the EU virtual summit this Friday which will also discuss the long-term EU budget. Expectations are for the debate to [..]

Technical Analysis – NZDJPY maintains neutral bias but risks are to the downside

Posted on June 17, 2020 at 2:58 pm GMT

NZDJPY is extending its sideways trading in the four-hour chart, trailing the lower bound of the Ichimoku cloud. The 20-period moving average (MA) is flatlining in the same region, providing additional support against downward attempts. The momentum indicators further underline the neutral short-term picture, though with the RSI glued slightly below the 50 level and the MACD hovering just below zero, a downside break is more likely than an upside one. Should NZDJPY face fresh selling pressure and slip below [..]

New Zealand’s GDP data may hide economic challenges despite being rid of virus – Forex News Preview

Posted on June 17, 2020 at 1:35 pm GMT

New Zealand will be the last of the major economies to report GDP estimates for the first quarter. The data, due at 22:45 GMT on Wednesday, will likely show the Pacific island nation recorded its first economic contraction in nine years in the first three months of 2020. Policymakers at the Reserve Bank of New Zealand will be keeping a close watch on the numbers as they ponder whether to take rates to negative territory. Although New Zealand is now [..]

Technical Analysis – USDCHF rebounds, but downtrend still in play

Posted on June 17, 2020 at 1:34 pm GMT

USDCHF recovered somewhat after touching a three-month low of 0.9375, but the rebound has been capped by the 50-period simple moving average (SMA) on the four-hour chart, and negative forces seem to have taken over again. The broader picture is still bearish, with the pattern of lower highs and lower lows not broken by the latest rebound. Momentum oscillators like the RSI and the MACD are both near their neutral levels, not revealing much about the next directional wave. If [..]

Technical Analysis – EURAUD selling interest in play; indicators in negative territory

Posted on June 17, 2020 at 12:48 pm GMT

EURAUD is continuing its aggressive selling interest from the eleven-year peak of 1.9800, achieved on March 19. The price is still moving below the short-term simple moving averages (SMAs) and the stochastic posted a bearish crossover within its %K and %D lines. However, the MACD is gaining some ground above its trigger line but remains below the zero level. Should the market extend losses, support could be met between the five-month low of 1.6017 and the 1.5890 obstacle. Then, if [..]

Technical Analysis – GBPJPY’s latest pullback consolidates around mid-Bollinger band

Posted on June 17, 2020 at 12:17 pm GMT

GBPJPY appears stalled at the 134.45 barrier – that being the 50.0% Fibonacci retracement of the down leg from 144.94 to 123.97, following the latest deflection on the upper Bollinger band. The present conflicting slopes of the 50- and 100-period simple moving averages (SMAs) and the mostly horizontal bearing of the 200-day SMA, reflect the neutral tone that exists in the pair. At this point in time, the short-term oscillators reflect no clear direction in the price. The MACD, in [..]

Australian jobs data: A risk for the high-flying aussie? – Forex News Preview

Posted on June 17, 2020 at 12:02 pm GMT

The latest employment numbers out of Australia will hit the markets at 01:30 GMT Thursday and forecasts point to more job losses, though that may be more of a counting issue than a reflection of real economic conditions. The high-flying aussie could spike lower if the data disappoint, but its broader direction will hinge mainly on risk sentiment. On that front, much will depend on how the global virus picture evolves, especially in America. Statistical shenanigans? Australia is expected to [..]

Technical Analysis – US 100 index turns its gaze back to record highs

Posted on June 17, 2020 at 11:32 am GMT

The US 100 cash index (Nasdaq) suffered a small setback last week, after reaching a fresh record high of 10,155, but has since recovered most of its losses. The structure of higher highs and higher lows on the daily chart remains intact, which alongside the upward-sloping simple moving averages (SMAs), keeps the outlook positive. A new all-time high above 10,155 would reaffirm the uptrend. Short-term momentum oscillators concur. The RSI – already above 50 – looks to be headed for [..]

Technical Analysis – EURGBP retains neutral mode; approaches 0.9000

Posted on June 17, 2020 at 10:07 am GMT

EURGBP has been developing within a consolidation area since May 15, despite the upside penetration at the end of the previous month. Looking at the last few days, the pair is extending a bullish move above the Ichimoku cloud and the 23.6% Fibonacci retracement level of the up leg from 0.8670 to 0.9055 at 0.8963, heading towards the 0.9000 psychological mark. The RSI is moving sideways above the neutral threshold of 50, while the stochastic entered the overbought zone. A [..]

Daily Market Comment – Geopolitical tensions and virus spike dampen sentiment, but not much

Posted on June 17, 2020 at 8:51 am GMT

Rising regional tensions and a worrying increase in coronavirus cases weigh on risk assets But safe havens barely supported as growth optimism and drug hopes keep risk appetite alive Yen and gold slip, aussie bounces back from lows as stocks turn green Geopolitical tensions on the rise Clashes along the border between India and China as well as fresh provocations by North Korea over the last 24 hours raised fears of a serious flare up in regional conflicts amid a [..]

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