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Technical Analysis – CHI 50 index extends gains above 200-day SMA

Posted on June 2, 2020 at 3:10 pm GMT

China A50 stock index (Cash) lunged over the flat 200-day simple moving average (SMA) and the 13,692 high in the past sessions, reviving an improving picture. The recent upturn in the 50-day SMA suggests further advancements, as do the rising Ichimoku lines, which reflect growing positive momentum. Additionally, the MACD has pushed above its red trigger line in the positive zone, while the RSI is rising in the bullish territory. Moreover, the climbing stochastic %K line has entered the overbought [..]

ECB set to expand pandemic stimulus but size and split views may hurt euro – Forex News Preview

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

The European Central Bank is widely expected to announce a ramping up of its pandemic emergency purchase program (PEPP) on Thursday at 11:45 GMT as the Eurozone economy slowly emerges from weeks of lockdown. But as the euro rallies on the prospect of a double dose of fiscal and monetary stimulus, a smaller-than-anticipated increase in the PEPP and signs of opposition to further policy easing may spoil the party. Pandemic stimulus to be boosted The ECB has been dropping strong [..]

Technical Analysis – EURCHF’s correction encounters obstructing 200-day SMA

Posted on June 2, 2020 at 1:57 pm GMT

EURCHF’s latest gains off of the 1.0575 mark have followed the upper Bollinger band until the 200-day simple moving average (SMA). Additionally, the momentum indicators reflect buyers’ efforts for further advances, despite the capping 200-day SMA at 1.0763. The short-term oscillators at the moment continue to reflect an improving picture with no signs of easing. The MACD, in the positive region, is increasing above its red signal line, while the rising RSI climbs into the overbought section. Moreover, the stochastic [..]

Technical Analysis – USDCAD declines to 2-month low but indicators signal a pullback

Posted on June 2, 2020 at 1:32 pm GMT

USDCAD extended Monday’s losses and is currently trading not far above a two-month low of 1.3491 hit earlier today. The strong bearish rally started has been evolving since April 21. However, the momentum indicators are suggesting a possible pullback in the very short-term. The stochastic oscillator is creating a bullish crossover in the oversold zone and the RSI is sloping up below the 30 level. Further declines may meet support around the inside swing high from February 28 at 1.3465. [..]

Technical Analysis – WTI oil futures hold neutral after ticking up to a 12-week high

Posted on June 2, 2020 at 9:56 am GMT

WTI crude oil futures for July delivery have been moving slightly higher on the four-hour chart since the soft rebound on the ascending trend line at 30.57 which has been holding since April 28. Over last couple of days, the commodity is trading sideways, finding resistance near the 12-week high of 35.90 and the upper Bollinger band. In the short-term, the market could maintain its consolidation phase if the RSI keeps moving around 50, and the 20- and 40-period simple moving averages (SMAs) hold flat. However, the MACD continues to stand above the trigger [..]

Technical Analysis – EURJPY plots gains, conquers bearish SMAs

Posted on June 2, 2020 at 9:06 am GMT

EURJPY is trailing the upper Bollinger band after the bounce off the 117.00 handle. Positive sentiment – also displayed in the short-term oscillators – has endured from the 42-month low of 114.423, extending the pair above the established, mostly bearish simple moving averages (SMAs). Although intact, the pair’s positive momentum appears to be under negative stress. On the one hand, the MACD in the positive section is distancing itself above its red signal line, while the RSI and stochastics lines [..]

Daily Market Comment – US protests rage on, start to weigh on dollar

Posted on June 2, 2020 at 8:28 am GMT

Trump inflames protests, threatens martial law as US stocks begin to take notice Dollar extends slide as recovery hopes keep positive sentiment intact Aussie flirts with $0.68 after RBA, pound shoots above $1.25 despite Brexit risks Oil steady ahead of OPEC+ meeting Market unease as protests ravage US cities Mass protests continue for a seventh day across major cities in the United States, causing widespread damage and looting in what is another blow for businesses already crippled by the shutdowns [..]

Technical Analysis – EURJPY plots gains; advances conquer bearish SMAs

Posted on June 2, 2020 at 8:19 am GMT

EURJPY is trailing the upper Bollinger band after the push off the 117.00 handle. Positive sentiment – also displayed in the short-term oscillators – has endured from the 42-month low of 114.423, extending the pair above the established, mostly bearish simple moving averages (SMAs). Although intact, the pairs’ positive momentum appears to be under negative stress. On the one hand, the MACD in the positive section is distancing itself above its red signal line, while the RSI and stochastics lines [..]

Bank of Canada may not change course as Macklem takes the helm – Forex News Preview

Posted on June 2, 2020 at 6:52 am GMT

The Canadian dollar may show fresh volatility on Wednesday after the Bank of Canada’s new chief holds his first policy meeting, with the rate announcement scheduled to be released at 14:00 GMT. Interest rates are expected to remain steady, while additional lending through corporate bond purchases cannot be excluded if the central bank wants to help more amidst lingering COVID-19 uncertainties and elevated domestic risks. Yet, what could attract greater attention, and hence move the loonie, is the central bank’s [..]

Technical Analysis – GBPUSD ready to hit 100-day SMA after strong rally

Posted on June 2, 2020 at 6:29 am GMT

GBPUSD had an impressive increase on Monday, jumping above the 50.0% Fibonacci retracement level of the down leg from 1.3515 to 1.1409 at 1.2460 and heading towards the 100-day simple moving average (SMA). The bias in the short-term timeframe remains neutral within the 1.2460 and the 1.2080 lines. According to momentum indicators, the RSI is flattening above the neutral threshold of 50, while the MACD is climbing above the trigger line and is surpassing the zero line. Additionally, the Ichimoku [..]

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