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Technical Analysis – USDJPY lifeless, controlled by horizontal structure

Posted on September 7, 2020 at 3:33 pm GMT

USDJPY remains ruled by a sideways market confining the price between the boundaries of 105.09 and 107.04. The Ichimoku cloud and lines still reflect weak directional momentum, while the gliding and converged simple moving averages (SMAs) appear powerless in assisting the price out of this range. The short-term oscillators further display the non-existent directional momentum. The MACD, slightly above zero, is floating just below its red trigger line, while the RSI is pointing upwards near its 50 threshold. The stochastic [..]

Technical Analysis – US 500 index corrects sharply from fresh all-time high

Posted on September 7, 2020 at 1:19 pm GMT

US 500 index (Cash) recently plummeted from its new all-time top of 3,588, spiking below the 200-period simple moving average (SMA) until the 3,348 trough from August 20. It appears that negative pressures are abating, mirrored in the flattening of the Ichimoku lines and as price stalls. Furthermore, the short-term oscillators also suggest some subsiding in the negative picture. The stochastic oscillator appears to be strengthening. The MACD’s decline, in the negative region, seems to have started to ease, while [..]

Technical Analysis – EURAUD flirts with SMA bullish cross

Posted on September 7, 2020 at 1:04 pm GMT

EURAUD is finding significant support at the 23.6% Fibonacci retracement level of the down leg from 1.6550 to 1.6126 at 1.6225, remaining above the bullish cross created within the 20- and 40-period simple moving averages (SMAs) in the 4-hour chart. The latest drop off the 1.6325 resistance drove the stochastics lower, though the indicator has already posted a bullish cross within the %K and %D lines below the 20 oversold mark. Moreover, the MACD oscillator is moving horizontally below the trigger line and near [..]

Daily Market Comment – Wall Street tumble, job woes put dollar on defensive

Posted on September 7, 2020 at 8:57 am GMT

Dollar edges up as US tech losses deepen, jobs recovery slows Brexit threatens pound rally as Johnson raises his game in EU talks Chinese exports surge keeps risk sentiment afloat as US tensions weigh Tech rally suffers major setback Global equity markets attempted to shrug off Wall Street’s rare selloff last week as Asian shares ended Monday mixed, while Europe’s major bourses opened sharply higher. The somewhat questionable risk-on tone was underscored by better-than-expected trade figures out of China, which [..]

Technical Analysis – Gold sustains bullish tone despite crawling sideways

Posted on September 7, 2020 at 8:15 am GMT

Gold is currently extending a sideways pattern above the simple moving averages (SMAs) and the 1,900 psychological number. Directional momentum has dried up as displayed by the steadied Ichimoku lines. Nonetheless, the rising SMAs continue to dictate a predominant bullish bias. The short-term oscillators reflect a relatively paused picture under a restrictive diagonal line drawn from the all-time high. The MACD has remained somewhat in the positive region but beneath its red signal line, while the RSI hovers marginally underneath [..]

Technical Analysis – EURUSD loses steam after spike to 29-month peak above 1.20

Posted on September 7, 2020 at 8:14 am GMT

EURUSD is edging lower after the spike towards the 29-month high of 1.2009 on September 1. The four consecutive red days drove the market below the 20-period simple moving average (SMA) and the technical indicators are confirming a bearish retracement. The MACD continues to hold below the trigger line in the positive zone, while the RSI is ready to touch the neutral threshold of 50. The next target to the downside is the 1.1755 support level, which overlaps with the [..]

Daily Market Comment – Wall Street rediscovers gravity ahead of US jobs report

Posted on September 4, 2020 at 1:25 pm GMT

Stock markets tank as investors dump their tech darlings Yet, there is no sense of panic in the market, especially among currencies US jobs report today might decide if this correction still has some mileage in it Risk aversion makes a rare appearance After cruising higher without any significant corrections for three months now, the US equity market finally suffered a meaningful setback on Thursday. The S&P 500 lost 3.5% and the Nasdaq was down 5% as investors dumped tech [..]

US elections: A simple guide and market implications – Special Report

Posted on September 4, 2020 at 1:13 pm GMT

The 3rd of November is the day that American citizens will decide who will lead their country for the next four years. Opinion polls suggest Biden will win, but Trump is quickly closing that polling gap in key battleground states and betting markets imply that the race is too close to call. In this piece, we examine how the complex US voting system works, what makes it different from other countries, and how markets might react ahead and after the [..]

Week Ahead – ECB meets amid deflation and euro headaches; BoC to stand pat

Posted on September 4, 2020 at 11:07 am GMT

Policy meetings by the European Central Bank and the Bank of Canada will heat up the September central banks schedule in the coming days, adding some excitement to an otherwise uneventful week. Neither central bank is expected to announce any new measures so the focus will be on what policymakers say about the recovery and the outlook. The ECB, in particular, will be one to watch as deflation worries are mounting and a stronger euro could jeopardise an already weakening [..]

Technical Analysis – NZDUSD’s foothold near 50-MA rescues positive bias

Posted on September 4, 2020 at 11:03 am GMT

NZDUSD’s drawback from the 13½-month high of 0.6789 appears to be restoring positive sentiment, after finding some traction around the 50-period period simple moving average (SMA) at 0.6687. The advancing SMAs and the approaching bullish crossover of the 200-period SMA by the 100-period one may re-establish confidence in the climb. The Ichimoku lines seem to have paused their negative bearing, while the short-term oscillators display a pick-up in positive momentum. The MACD looks set on improving from the zero area, [..]

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