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Daily Market Comment – US stocks flirt with record highs, gold retraces

Posted on August 11, 2020 at 8:57 am GMT

S&P 500 cruises towards all-time high as Trump floats capital gains tax cut Markets also take heart from ‘soft’ Chinese retaliation against US Gold pulls back as dollar and bond yields recover RBNZ meets overnight, might ‘talk down’ the kiwi more forcefully Wall Street sets its sights on new records Financial markets seem to have concluded that better days lie ahead for the global economy, with most asset classes trading in a buoyant manner this week. The S&P 500 is [..]

Technical Analysis – GBPUSD trapped between reversal pattern and long-term trendline

Posted on August 11, 2020 at 7:18 am GMT

GBPUSD started the week with weak momentum, holding slightly above the supportive red Tenkan-sen line and the 1.3060 level. Previously, the pair had jumped out of an ascending channel, raising speculation that the bulls may have further room to run. But a long-term descending trendline stretched from the 2015 peaks managed to halt the price around 1.3170, where the pair now seems to have created a double top formation – a bearish reversal pattern. In momentum indicators, the RSI has also topped twice in [..]

Technical Analysis – EURJPY retreats beneath 16-month high; bullish outlook

Posted on August 11, 2020 at 7:09 am GMT

EURJPY has been underperforming in the past two days, testing the red Tenkan-sen line. When looking at the bigger picture the pair has been in a clear bullish tendency since May 6. On the daily chart, prices bounced off the 16-month high of 125.60 but based on the technical indicators, momentum is weakening for a further move higher. The RSI indicator is flattening in the positive region, while the MACD slipped beneath the trigger line above the zero level. If [..]

Technical Analysis – AUDNZD set to confirm a bullish inverse head and shoulder pattern

Posted on August 10, 2020 at 3:57 pm GMT

AUDNZD is again desperately looking to break above the 1.0870 resistance area that has been holding for more than a year now. Slightly higher, the 23.6% Fibonacci retracement level of the 2011-2020 downtrend at 1.0883 is adding extra importance to the region as it looks to be the neckline of a bullish inverse head and shoulder pattern. Should the bulls breach that neckline, the rally may accelerate towards the 1.0970-1.1015 zone which has been a key barrier to upside movements [..]

RBNZ meeting: Shooting the kiwi down – Forex News Preview

Posted on August 10, 2020 at 3:56 pm GMT

The Reserve Bank of New Zealand will conclude its policy meeting at 02:00 GMT Wednesday. Domestic economic data have held up better than expected, but storm clouds are gathering and the RBNZ may take proactive action. Policymakers could expand their QE programme, and lay out the conditions for using more unorthodox tools. At a minimum, the RBNZ will maintain a very dovish tone, and if it doesn’t shoot down the kiwi through more action, it may still do so through [..]

Technical Analysis – GBPNZD cautiously positive; gains meet significant strain

Posted on August 10, 2020 at 3:17 pm GMT

GBPNZD is tackling the capping 100-day simple moving average (SMA) at 1.9880 at the ceiling of the Ichimoku cloud. The bullish demeanour of the Ichimoku lines look to be aiding the price’s recent ascent from 1.9000, which has so far recouped some losses of a three-month deterioration. The short-term oscillators also reflect the improvement in positive momentum. The MACD, in the positive section, is increasing above its red trigger line as the RSI sneaks into overbought territory. Moreover, the stochastic [..]

UK to declare worst recession in a century; jobless rate to rebound – Forex News Preview

Posted on August 10, 2020 at 2:19 pm GMT

Markets will place an extra weight on employment readings and GDP growth figures out of the UK on Tuesday (08:30 GMT) and Wednesday (06:00 GMT) respectively after the Bank of England showed concerns of a rising unemployment rate at its previous week’s policy meeting but reiterated that the economy has a more rapid recovery than it initially projected. With the pound having erased some of its gains on the back of a stronger dollar on Friday, the data should significanty [..]

Technical Analysis – EURCHF remains range bound despite slight appreciation

Posted on August 10, 2020 at 1:19 pm GMT

EURCHF is still trading within the boundaries of 1.0711 and 1.0837 without directional momentum. This is reflected in the zig zagging Ichimoku lines and gradually diminishing slopes of the 50- and 100-period simple moving averages (SMAs), as they all converge to a somewhat horizontal state. The pair’s latest push higher is mirrored in the rising RSI, which peeked above the 50 threshold, and the increasing stochastic lines from the oversold territory. Nevertheless, the lack of momentum reflected in the flattened [..]

Technical Analysis – AUDUSD seems ready to test uptrend line

Posted on August 10, 2020 at 1:16 pm GMT

AUDUSD completed a double top formation around the 0.7243 resistance level and dropped beneath the 0.7174 resistance and the 40-period simple moving average (SMA). However, the price found strong support at the 23.6% Fibonacci retracement level of the up leg from 0.6830 to 0.7243 at 0.7146 and the Ichimoku cloud. Technically, the RSI indicator is flattening below the 50 level and the MACD oscillator dropped beneath the trigger line and the zero level. The 20- and 40-period SMAs are sloping [..]

Daily Market Comment – Dollar gets a second wind after US payrolls, can it last?

Posted on August 10, 2020 at 10:44 am GMT

Decent US jobs report triggers a short squeeze in the dollar Is the reversing trend in European/American virus cases going to show up in euro/dollar? Trump signs executive orders to bypass Congress and provide more stimulus Muted market reaction to this – does it imply less stimulus overall? Dollar shorts get squeezed after payrolls The world’s reserve currency got a second wind on Friday, recovering some lost ground after a decent US employment report saw traders cover or trim some [..]

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