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Daily Market Comment – Virus ‘breakthrough’ lifts stocks; dollar awaits Powell speech

Posted on August 24, 2020 at 9:00 am GMT

Markets start week on positive note amid progress on Covid-19 treatment and vaccine Dollar holds firm as investors gear up for Powell’s big Jackson Hole speech Euro and pound left reeling after data shock and Brexit blow Virus optimism leads equities higher Markets have started the week on a cheery note as news that President Trump has authorized the emergency use of plasma treatment for Covid-19 patents and is considering fast tracking a UK vaccine before the election boosted sentiment. [..]

Technical Analysis – EURUSD retains positive tone but negative signals apply strain

Posted on August 24, 2020 at 7:30 am GMT

EURUSD maintains a bullish tone despite the pullback from the fresh 27-month peak of 1.1965. The Ichimoku lines sustain a bullish momentum some distance above the Ichimoku cloud, while the advancing simple moving averages (SMAs) dictate a predominant positive bearing. That said, the short-term oscillators reflect a negative picture however and momentum seems to be shifting. The MACD has weakened below its red trigger line but remains far in the positive region, while the RSI is picking up after slipping [..]

Technical Analysis – EURUSD retains positive risks; negative signals apply strain

Posted on August 24, 2020 at 7:00 am GMT

EURUSD maintains a bullish tone despite the pullback from the fresh 27-month peak of 1.1965. The Ichimoku lines sustain a bullish momentum some distance above the Ichimoku cloud, while the advancing simple moving averages (SMAs) dictate a predominant positive bearing. That said, the short-term oscillators reflect a negative picture however momentum seems to be shifting. The MACD has weakened below its red trigger line but remains far in the positive region, while the RSI is picking up after slipping near [..]

Week Ahead – Markets to stay choppy ahead of virtual Jackson Hole symposium

Posted on August 21, 2020 at 12:49 pm GMT

The Federal Reserve will be front and centre next week as traders will be hoping policymakers will provide clearer signals on future monetary stimulus than they did in the FOMC minutes when they hold a virtual gathering of their annual economic symposium. Data out of the United States will constitute the predominant data releases, and coupling that with the Fed event, there can be little doubt the US dollar will be the primary driver of the FX market in an [..]

Technical Analysis – US 30 index hits a snag, ascent dwindles into cloud

Posted on August 21, 2020 at 9:57 am GMT

US 30 stock index (Cash) drifted into the Ichimoku cloud and under the now capping 50-period simple moving average (SMA) after reaching a 5½-month high of 28,154. The waning positive momentum in the index is sponsored by the negative tone of the Ichimoku lines and, specifically, the fading red Tenkan-sen line. The short-term oscillators further support the negative move in the pair. The RSI slipped below its 50 neutral mark, while the stochastic oscillator cemented its bearish demeanour, breaking below [..]

Technical Analysis – NZDUSD rises after the slip to 7-week low

Posted on August 21, 2020 at 9:47 am GMT

NZDUSD reached oversold levels according to the stochastic oscillator and reversed higher after it hit a new seven-week low at 0.6487. The RSI is also returning higher in the negative territory. While the aforementioned technical indicators continue to pick up speed, mirroring the market’s upside retracement in the very short-term the 20- and 40-period simple moving averages (SMAs) are trying to tick higher increasing their distance above the price action. In case the pair changes its short-term direction to the upside, the bulls will probably challenge [..]

Daily Market Comment – Dollar gets a second wind after bleak Eurozone PMIs

Posted on August 21, 2020 at 8:49 am GMT

Vaccine news from Pfizer boost sentiment, more records for Nasdaq Dollar can’t find much love amid risk-taking mood But how long can the market ignore Europe’s second wave? Perhaps not long, as the Eurozone’s PMIs provide a reality check Dollar feels the ‘risk on’ blues There’s no love for the US dollar out there. The reserve currency remained on the back foot on Thursday, surrendering some of the gains it posted after the FOMC minutes played down the prospect of [..]

Technical Analysis – USDCAD transmits negative prognosis, weakening prevails

Posted on August 21, 2020 at 6:32 am GMT

USDCAD appears to have declared a negative route below the descending line drawn from the 50-month peak of 1.4667. The bearish tone of the 50- and 100-day simple moving averages (SMAs) and the falling mid-Bollinger band (20-day SMA), which has merged with the diagonal line, further aid the broader negative outlook. The short-term oscillators are uttering temporary mixed signals in directional momentum. The MACD, in the negative region, is marginally above its red signal line as they both follow a [..]

Technical Analysis – GBPJPY moves horizontally; bullish bias

Posted on August 21, 2020 at 6:25 am GMT

GBPJPY has been holding in a horizontal trajectory over the last week following the bounce off the 24-week peak of 140.19. However, the price is still developing above the five-month ascending trend line. Technically, the RSI indicator is moving marginally up in the positive area, while the stochastic is posting a bullish crossover within the %K and %D lines. More upside movements could take the price towards the immediate 140.90 resistance before creating a steeper increase until the 144.95 barrier, taken from the peak [..]

Technical Analysis – Apple’s relentless rally continues, sets new records

Posted on August 20, 2020 at 1:43 pm GMT

Apple’s stock touched a new record high of 468.5 this week, continuing its relentless five-month rally, with the price having more than doubled since its March lows. The chart is as bullish as it can be, with an uninterrupted structure of higher highs and higher lows, and the price action taking place above all its simple moving averages (SMAs), which are pointing higher. Momentum oscillators mostly paint a positive picture as well. The MACD is above zero and over its [..]

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