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Technical Analysis – EURUSD trades around 2-month peak; turns bias to bullish

Posted on May 28, 2020 at 7:38 am GMT

EURUSD has been rising over the last two weeks, challenging a fresh almost two-month high at 1.1034. The bullish picture in the short-term is further supported by the MACD, which is edging higher and above its red trigger line, while the stochastic is heading towards the overbought zone with weaker momentum than before. The 20- and 40-period simple moving averages (SMAs) posted a bullish crossover, indicating more gains in the foreseeable future. The next resistance area to have in mind [..]

Technical Analysis – WTI oil futures lose some shine but uptrend still intact

Posted on May 28, 2020 at 7:32 am GMT

WTI crude oil futures for July delivery inched down on Wednesday after failing to lift the strong ceiling around 34.63 and jump above the Ichimoku cloud. The price is now looking for support at April’s highs around 31.00 in order to pick up steam, though the weakening RSI and the slowing MACD are currently discouraging any upside move but not ruling it out as long as the former holds above its 50 neutral mark and the latter above its red [..]

Have stocks ‘gotten over’ the virus? – Special Report

Posted on May 27, 2020 at 4:03 pm GMT

There’s been a lot of talk for a powerful V-shaped recovery, but that has only happened in the stock market, which is ignoring the rising economic and geopolitical risks and is instead plowing higher, powered by a tsunami of stimulus. Alas, at current levels equities imply a ‘painless’ recession, which is probably much too rosy. Overall, so much optimism has been priced back in, that it would almost take a miracle for reality to match the stellar expectations. There is [..]

Canadian GDP data may not be a game changer for the loonie – Forex News Preview

Posted on May 27, 2020 at 3:30 pm GMT

While markets are shifting focus to the second half of the year, hoping to see signs of economic recovery on the back of easing lockdown measures, the loonie will take a glance at Friday’s Q1 GDP numbers at 12:30 GMT. The monthly GDP readings for March may attract special attention as this was the month the government ordered the quarantine. Yet, the overall ugly outcome may prove outdated and probably not a game changer for the rising loonie. GDP growth [..]

Technical Analysis – GBPJPY’s recent optimism attempts to turn tone bullish

Posted on May 27, 2020 at 1:14 pm GMT

GBPJPY’s recent up move from the 129.28 level appears to be finding difficulty in closing above the 200-period simple moving average (SMA) at 132.60 and the 133.00 handle. The flatness in the MACD and the blue Kijun-sen line reflect a stall in positive momentum, while the upward slopes in the red Tenkan-sen line and the RSI promote strength in the advance. Moreover, the rising 50-period SMA may be nearing a bullish crossover of the 100-period one, which could further aid [..]

Eurozone ESI and inflation unlikely to distract euro ahead of ECB decision – Forex News Preview

Posted on May 27, 2020 at 10:16 am GMT

The Economic Sentiment Indicator (ESI) and preliminary inflation readings will be the data highlights in the Eurozone this week. The ESI is out on Thursday and the flash inflation estimate will follow on Friday; both are due at 09:00 GMT. The two reports are expected to paint contrasting pictures as the ESI should tick higher – in line with other business surveys – as the lockdowns are relaxed, while the price data may sound alarm bells about the deflationary impact [..]

Deluge of US data unlikely to excite dollar, but risk tones might – Forex News Preview

Posted on May 27, 2020 at 9:29 am GMT

In America, there’s a flood of data coming up towards the end of the week. Durable goods orders and the weekly jobless claims are due at 12:30 GMT on Thursday, while Friday brings consumption and income numbers ahead of a speech by Fed chief Powell (15:00 GMT). For the dollar though, none of these is likely to have much of an impact. Instead, the reserve currency may be driven mainly by how risk sentiment evolves. Overall, it’s difficult to envision [..]

Daily Market Comment – Caution sets in after Trump signals Hong Kong action

Posted on May 27, 2020 at 8:41 am GMT

Dollar firms as Trump hints at end-of-week response against China over Hong Kong But stocks mixed as US-China tensions fail to dent recovery optimism EU divisions resurface, put a brake on euro’s advances US preps Hong Kong sanctions: only Asia takes note Asian stocks were under pressure on Wednesday as US President Donald Trump gave his clearest signal yet that his administration is planning a response to China’s tightening of its grip on Hong Kong. In a White House press [..]

Technical Analysis – Gold heads lower, hitting 2-week low

Posted on May 27, 2020 at 8:19 am GMT

Technical Analysis – Gold heads lower, hitting 2-week low Gold prices are heading lower in the very short-term, penetrating the 100-period simple moving average (SMA) on the 4-hour chart and challenging a new two-week low of 1,705. According to the technical indicators, the RSI is pointing slightly up near the oversold zone, while the MACD is falling below the trigger and zero lines. In case of steeper decrease the price could move towards the 50.0% Fibonacci retracement level of the [..]

Technical Analysis – USDJPY edges sideways; capped by 50-day SMA

Posted on May 27, 2020 at 7:25 am GMT

USDJPY’s recent obstruction to upside moves seems to be coming from the 107.69 level, that being the 38.2% Fibonacci retracement of the up leg from the 41-month low of 101.17 to the 111.71 high. The pair had drifted into a consolidation period (105.98 – 108.08) that has held for 6-weeks, where price advancements have been restricted by the 50-day simple moving average (SMA). Aiding the struggle to climb higher is the converged 100- and 200-day SMAs, which further dictate a [..]

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