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Technical Analysis – USDCAD rebounds on 3-month low, surpassing 20-period SMA

Posted on June 9, 2020 at 1:29 pm GMT

USDCAD has been in declining movement over the last month but is currently trading above the three-month low of 1.3360. The stochastic oscillator is approaching the overbought zone; however, the RSI is pointing down after the touch on the neutral threshold of 50. Also, the red Tenkan-sen line is holding below the blue Kijun-sen line, suggesting more losses in the near term. A downfall below the 20-period simple moving average (SMA) could find immediate support at the three-month low of [..]

Daily Market Comment – Stocks back in the black, dollar selling takes a breather

Posted on June 9, 2020 at 10:28 am GMT

S&P 500 recoups all its losses for the year, Nasdaq hits new record Optimism echoed in FX too, with dollar struggling as commodity currencies hit multi-month highs However, we are seeing a reversal of these moves today – some profit taking? Looking ahead, much will depend on what the Fed does and whether a second wave hits the US S&P turns flat for 2020, Nasdaq cruises to new highs Fear has given way to greed in an impressive way over [..]

Technical Analysis – EURCAD looking range bound; plots some gains

Posted on June 9, 2020 at 10:23 am GMT

EURCAD today found footing on the 1.5127 level, that being the 50.0% Fibonacci retracement of the up leg from the 34-month low of 1.4263 to the 2-year high of 1.5991. Despite the fact that positive momentum is increasing, the pair remains confined within a sideways market between 1.5052 and 1.5532, something also reflected in the simple moving averages (SMAs). The MACD is increasing above its red signal line and has moved above zero, while the RSI is rising towards the [..]

Technical Analysis – Gold returns above 1,700; still bearish in short term

Posted on June 9, 2020 at 9:44 am GMT

Gold is extending its positive momentum following the bounce off the 1,671 support level, having surpassed the 20-period simple moving average (SMA) in the 4-hour chart. However, the structure in the short-term remains bearish despite the latest upside correction. In momentum indicators, the RSI is pointing up near its neutral threshold of 50, while the MACD oscillator has posted a bullish cross with its trigger line in the negative territory. Should gold challenge more levels to the upside, immediate resistance could come from the 40-period SMA at 1,713. Clearing this line, [..]

Technical Analysis – WTI dipping under mid-Bollinger band; positive picture intact

Posted on June 9, 2020 at 8:14 am GMT

WTI oil futures presently appear to be retracing under the mid Bollinger band around 38.23, heading towards the 50-period simple moving average (SMA) at 35.88. The commodity’s one-and-a-half month hike from the 6.62 bottom pivoted back down just before filling the gap from early March at 41.28. Nevertheless, the SMAs continue to back the positive picture for the commodity. The short-term oscillators at the moment reflect conflicting signals in directional momentum. The MACD, in the positive region, has marginally dipped [..]

Technical Analysis – EURJPY loses ground after climbing to 13-month peak

Posted on June 9, 2020 at 7:36 am GMT

EURJPY has been creating a strong bearish dive since the bounce off the 13-month peak of 124.42, falling back below the 122.00 mark, which stands near the 23.6% Fibonacci retracement level of the upward move from 114.40 to 124.42. The momentum indicators are losing momentum while in positive territory. The MACD is flattening well above its trigger and zero lines, while the RSI is dropping beneath its overbought region, suggesting a pullback in the short-term. Further declining movement could [..]

Technical Analysis – GBPUSD ticks above 200-SMA but bulls hit new resistance

Posted on June 9, 2020 at 7:17 am GMT

GBPUSD finished Monday’s session slightly above the 200-day simple moving average (SMA) following last week’s roller coaster which put the strong rebound from 35-year lows back into life. Whether the pair could push for more gains depends now on the 1.2760 resistance which is currently under examination. Should it give way, the rally could get more legs towards the 1.2850 barrier, while higher, there is a tougher wall standing around 1.2975 which the bulls need to pull down in order to accelerate [..]

Technical Analysis – US 30 index jumps above 200-day SMA; enters key resistance zone

Posted on June 5, 2020 at 1:17 pm GMT

The US 30 stock index (cash) ticked above the 200-day simple moving average (SMA) and is ready to test the 26,580-27,000 resistance zone. The battle could be challenging as the RSI and the stochastics point to an overbought market, suggesting that the rally could soon lose steam. If the bulls are unable to remove the 27,000 ceiling, letting the price slip back below the 200-day SMA, the red Tenkan-sen line near the 25,770 barrier could take over. However, what could [..]

Week Ahead – Recovery hopes to remain front and centre as Fed to sit out June meeting

Posted on June 5, 2020 at 1:07 pm GMT

As global markets set their sights on a quick recovery from the COVID-19 crisis, key economic data for April – when the pandemic impact is thought to have peaked – will likely be sidelined next week. The Federal Reserve might also struggle to attract the usual attention when it holds a scheduled meeting as investors are not anticipating any new policy action. But as safe havens like the dollar and yen give way to virus-battered currencies, there are plenty of [..]

Technical Analysis – GBPUSD spikes above 1.2600 but returns some gains

Posted on June 5, 2020 at 11:08 am GMT

GBPUSD spiked towards a three-month high of 1.2705 but it finished the session below the 1.2645 barrier on Thursday. The upside rally which started after the rebound on the 1.2075 support could take a breather in the near term as the momentum indicators are suggesting a pullback. The RSI is edging south below the 70 level, while the MACD is holding beneath its red trigger line. A declining move could find immediate support at the flat red Tenkan-sen line around 1.2590 and the 20-period simple moving average (SMA) at [..]

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