The US currency has continued to decline against a basket of currency majors. The dollar index (#DX) closed again in the negative zone (-0.16%). Prospects for new stimulus measures for global economies and global economic recovery have motivated traders to buy risky assets. Also, the US dollar is under pressure due to mass protests in the United States.
The British pound has updated local highs after it became known that the UK can be flexible in talks with the EU. The country is expected to make concessions on some critical issues in the Brexit talks if the EU agrees to mitigate regulatory requirements. The UK should also ask by July 1 to extend the current transition period, which ends in December. Today, financial market participants will be focused on the Bank of Canada meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level.
The “black gold” prices continue to rise. Futures for the WTI crude oil are currently testing the $37.45 mark per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.
Market indicators
Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.40%), #DIA (+0.39%), #QQQ (+0.30%).
The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.66-0.67%.
The news feed on 2020.06.03:
– German unemployment change at 10:55 (GMT+3:00);
– UK composite PMI at 11:30 (GMT+3:00);
– Services PMI in the UK at 11:30 (GMT+3:00);
– ISM non-manufacturing PMI at 17:00 (GMT+3:00);
– Bank of Canada interest rate decision at 17:00 (GMT+3:00).
The EUR/USD currency pair continues to show a steady uptrend. Quotes have reached key extremes. The demand for risky assets is still high amid hopes of a recovery in the global economy. At the moment, the trading instrument is testing the resistance of 1.1230. The 1.1155 mark is already a “mirror” support. In the near future, the technical correction of the EUR/USD currency pair is not ruled out. We expect the publication of important statistics. Positions should be opened from key levels.
The Economic News Feed for 2020.06.03:
– German labor market report at 10:55 (GMT+3:00);
– Markit composite PMI in the Eurozone at 11:00 (GMT+3:00);
– ADP nonfarm employment change at 15:15 (GMT+3:00);
– ISM non-manufacturing PMI at 17:00 (GMT+3:00).
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.
Stochastic Oscillator is near the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.1155, 1.1100, 1.1065
Resistance levels: 1.1230, 1.1300
If the price fixes above 1.1230, further growth of EUR/USD quotes is expected. The movement is tending to the round level of 1.1300.
An alternative could be a decrease in the EUR/USD currency pair to 1.1120-1.1100.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.24889
Open: 1.25501
% chg. over the last day: +0.45
Day’s range: 1.25454 – 1.26120
52 wk range: 1.1466 – 1.3516
The bullish sentiment prevails on the GBP/USD currency pair. Since the beginning of this week, quotes growth has exceeded 250 points. The British pound has reached $1.26. The 1.2525 mark is the nearest support. The demand for risky currencies is still high. We do not exclude the further growth of the trading instrument. We expect important economic releases from the UK and the US. We recommend opening positions from key levels.
At 11:30 (GMT+3:00), a number of indicators on economic activity will be published in the UK.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, which gives a signal to buy GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.2525, 1.2480, 1.2425
Resistance levels: 1.2600, 1.2650
If the price fixes above 1.2600, further growth of GBP/USD quotes is expected. The movement is tending to 1.2640-1.2670.
An alternative could be a decrease in the GBP/USD currency pair to 1.2480-1.2450.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.35745
Open: 1.35171
% chg. over the last day: -0.41
Day’s range: 1.34801 – 1.35277
52 wk range: 1.2949 – 1.4668
The USD/CAD currency pair has become stable after a significant drop. The loonie is currently consolidating in the range of 1.3480-1.3540. Financial market participants have taken a wait-and-see attitude before today’s meeting of the Bank of Canada. It is expected that the regulator will keep the key marks of monetary policy at the same level. We also recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.
At 17:00 (GMT+3:00), the Bank of Canada will announce its interest rate decision.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram is in the negative zone, indicating the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.3480, 1.3450, 1.3400
Resistance levels: 1.3540, 1.3585, 1.3675
If the price fixes below 1.3480, a further drop in USD/CAD quotes is expected. The movement is tending to the round level of 1.3400.
An alternative could be the growth of the USD/CAD currency pair to 1.3600-1.3640.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.584
Open: 108.671
% chg. over the last day: +1.01
Day’s range: 108.421 – 108.848
52 wk range: 101.19 – 112.41
There are aggressive purchases on the USD/JPY currency pair. Yesterday, the growth of quotes exceeded 100 points. The trading instrument has overcome and fixed above the key extremes. At the moment, USD/JPY quotes are consolidating in the range of 108.45-108.85. The USD/JPY currency pair has the potential for further growth. We expect important economic reports from the US. We recommend following current information regarding the trade conflict between Washington and Beijing. Positions should be opened from key levels.
The news feed on Japan’s economy is calm.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, indicating the bullish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.
Trading recommendations
Support levels: 108.45, 108.30, 107.90
Resistance levels: 108.85, 109.20, 109.50
If the price fixes above 108.85, further growth of USD/JPY quotes is expected. The movement is tending to 109.20-109.40.
An alternative could be a decrease in the USD/JPY currency pair to the round level of 108.00.
– The recent “melt-up” in the US stock market after a moderate downside price move in early May 2020 has set up a number of technical patterns that traders need to pay attention to. This melt-up trend may continue for a bit longer, but price levels and actions are beginning to set up very clear patterns that warn of potential weakness in the future.
First, no matter how we attempt to spin the data, the US economy is very likely to fall into a moderate recession after the COVID-19 virus event has created a world-wide economic event and the recent riots and protests all across the US continue to disrupt and destroy property, businesses, and other assets.
It is almost like a one-two-three series of punches leading to a TKO. We have the virus event, the stay-at-home orders, and now the riots and protests. Recently, the National Guard has been called out to support local law enforcement and to protect people and properties. From our perspective, the situation is very far away from stable economic activity/growth supporting current stock price activity/levels.
We have been urging our friends and followers to be very cautious of long-side trades and to execute them with very narrow parameters, minor position sizes, and easy/tight targets and stops. The reason for this is because we are not confident that the underlying global economic fundamentals support the current price trends and activities. Yes, the US Fed is pouring trillions into the economy attempting to support the US and global markets, but the view from the ground level is very different from the Wall Street office on the 20th floor.
The GDP-Based Recession Indicator Index has risen to the highest levels since Q1:2008 as of April 2020 data. If it continues higher with the May 2020 data point, we’ll have more evidence that the US economy has entered the early stages of an economic recession. Remember, in early 2008, the US stock market had already begun to collapse more than 20% from recent highs. Currently, the SPY is trading only -9.63% below the all-time high levels. Our researchers continue to believe the US stock market is overvalued by at least 11% to 15% at current levels.
GDP-Based Recession Indicator Index
We continue to urge technical traders to be very cautious of the potential “washout-high” price pattern that is setting up and we continue to urge our followers to be very selective of active long trades. There is money to be made in this trend and certain sectors and symbols have rallied 10 to 15% over the past 4+ weeks – but technical traders need to be very aware of the active risks still playing out in the markets.
This Daily YM (Dow Jones E-Mini Futures Chart), highlights the major resistance levels near current price highs. The first, the MAGENTA line originates from our Adaptive Fibonacci Price Modeling system and is a key target/price level originating from the all-time price peak level. The reason this level is so important is that it continues to reflect the prominent downside price move/trend and this key Fibonacci level is still active until it is breached by price moving/closing above this level.
Second, the current Adaptive Fibonacci Price modeling system trigger level is highlighted in YELLOW. This level is going to act as a “trigger point” in price. If price rallies above this level and closes above this level, then we may see more upward price activity over the next few days/weeks. If price fails to close above this level and stays below this level, then we interpret this as a failure to achieve the trigger level and it would suggest that price may begin to move downward – away from this critical price trigger level.
Watch for the YM to move to levels near or above 25,600 and watch how it reacts to this key resistance level. If it rallies above this level then fails and begins to move dramatically lower – this level is being rejected and a new bearish trend may setup. If it moves above this level and closes above this level, then we have confirmation of a potential upside price trend and bullish trending may continue for a bit longer.
DOW JONES E-MINI FUTURES DAILY CHART
This next Weekly chart, the IWM (Ishares Russell 2000 ETF), highlights another key technical pattern – a Gap Fill. We’ve been watching how capital has transitioned from the NASDAQ and S&P500 and into the Mid-Caps and other sectors over the past 4+ weeks. Once the major indexes began to reach levels near the past all-time highs, capital began seeking out undervalued sectors and technical traders began rotating into these sectors expecting a moderate price rally to occur.
Not that the Russell 2000 has rallied up to fill this gap, it is very likely that some level of moderate price weakness will setup – possibly pushing price levels lower. A Gap Fill is a technical pattern that suggests any Gap in price will eventually get filled by future price activity. Once this Gap is Filled, the price has completed a technical pattern to “fill the void”. After the Gap is filled, price usually stalls and moves in the opposite direction for a period of time – establishing a new base for a new momentum move.
We believe the filling of the GAP on this IWM chart suggests the Mid-Caps may have reached a key resistance level and may begin to move downward in the near future – likely attempting to establish a new momentum base near the $122 level.
IWM – ISHARES RUSSELL 2000 ETF WEEKLY CHART
We love this market volatility and how various sectors are rotating right now. It presents incredible opportunities to be able to select new trades. We are still being very cautious overall with our portfolio. We’ve been able to achieve new highs in our accounts by selectively trading various symbols and targeting exit points using our proprietary trading technology. Right now, we have two active trades that continue to generate solid profits. No reason to go crazy trying to pick dozens of trades with our “Best Asset Now” modeling system. It allows us to attempt to stay active while trading the best asset class in the markets.
Watch how the markets react this week and early next week. We recently posted a research article about the US Presidential cycle and how June/July is often very difficult months in an election year. You may find this research article very informative as we push forward into the Summer months of this 2020 election hear
I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts. These simple to follow ETF swing trades have our trading accounts sitting at new high water marks yet again this week, not many traders can say that this year. Visit my Active ETF Trading Newsletter.
If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Long-Term Investing Signals which we issued a new signal for subscribers.
Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.
Chris Vermeulen Chief Market Strategies Founder of Technical Traders Ltd.
As it now is clearly holding above 1,700 USD, the outlook for Gold is strongly bullish. Nevertheless, bulls are now obligated to “deliver” if they want to avoid a deeper short-term correction.
“Deliver” in this context means nothing more than: “push the precious metal above 1,770 USD to new yearly highs”. If they fail to do so, the still given bearish divergence in the RSI(14) on a daily time-frame could play out and result in a test of the short-term trend-support around 1,660 USD.
Nevertheless, mid-term our take for the yellow metal stays clearly bullish and we expect rather than later a stint to the all-time high around 1,920 USD.
One potential driver for such a move could be a sustainable drop in 10-year US Treasury yields below 0.60% which seems, in our opinion, only a question of time.
One trigger could be today’s release of the ADP employment report. While private businesses in the US fired 20.2 million workers in April, today’s numbers are expected only at 9 million lost jobs for May.
Still, any print which comes in worse than the expectation and above 10 million could trigger a next wave of risk-off, bringing US yields under pressure again and driver the precious metal significantly higher with bringing 1,770 USD into our focus.
On the other hand, any positive surprise with a print of less than 9 million fired workers could push Gold again below 1,700 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between March 4, 2019, to June 2, 2020). Accessed: June 2, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
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After breaking the consolidation range to the upside, EURUSD is expected to continue growing towards 1.1237 or even 1.1250. Today, the pair may reach the former level and then start a new correction towards 1.1175. Later, the market may resume trading upwards with the target at 1.1250.
GBPUSD, “Great Britain Pound vs US Dollar”
GBPUSD is still trading upwards. Possibly, the pair may extend the current wave up to 1.2646. After that, the instrument may start a new decline with the target at 1.2481.
USDRUB, “US Dollar vs Russian Ruble”
After finishing the descending wave at 68.80, USDRUB is expected to consolidate around this level. Later, the market may break this range to the downside to reach 68.00 and then start another correction with the target at 70.70.
USDJPY, “US Dollar vs Japanese Yen”
After breaking 107.90to the upside, USDJPY has reached 108.70. Today, the pair may correct downwards to return to 107.90 and then form one more ascending structure with the target at 109.41.
USDCHF, “US Dollar vs Swiss Franc”
USDCHF is still consolidating around 0.9616. If later the price breaks the range to the downside at 0.9600, the market may fall to reach 0.9550; if to the upside at 0.9630 – resume trading upwards with the target at 0.9690.
AUDUSD, “Australian Dollar vs US Dollar”
AUDUSD trading upwards; it has reached 0.6950 and right now is consolidating below this level. Possibly, the pair may break fall towards 0.6868 and then extend the ascending wave up to 0.7015.
BRENT
After reaching 39.10 and forming a new consolidation range around this level, Brent has broken it to the upside to reach 40.10. Today, the asset is expected to continue growing towards 41.00. After that, the instrument may start consolidating. If later the price breaks the range to the downside, the market may correct with the target at 37.70.
XAUUSD, “Gold vs US Dollar”
After rebounding from 1744.00 downwards, Gold has reached the downside border of the range at 1727.27; right now, it is consolidating around this level. If later the price breaks the range to the downside, the market may resume falling with the target at 1709.20; if to the upside – form one more ascending structure to reach 1744.40.
BTCUSD, “Bitcoin vs US Dollar”
After completing the descending structure at 9750.00 and breaking this level downwards, BTCUSD is expected to continue falling towards 9085.00. Later, the market may grow to test 9700.00 from below and then continue the correction with the target at 8500.00.
S&P 500
The Index has completed the ascending wave at 3090.5. Today, the asset may correct to reach 3073.6 and then start another growth with the target at 3125.5.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Preventing deaths from COVID-19 depends on people who get it seeking treatment – which also allows authorities to track down whom they came in contact with to reduce spread.
But, as the economic pain and joblessness caused by the statewide lockdowns continue to grow, more Americans are experiencing severe strains on their personal finances. This threatens our ability to contain the pandemic because those feeling the most financial stress are much less likely to seek medical care if they experience coronavirus symptoms, according to my analysis of a recent Federal Reserve survey.
The Fed conducts a survey of the economic health of U.S. households every quarter, most recently near the end of 2019. In April, it conducted a supplementary but similar survey to quickly gauge how people were handling the coronavirus crisis. Results of both surveys were released on May 14.
The Fed tries to measure financial stress in three key ways. Its surveys ask respondents if they are unable to pay all their monthly bills, couldn’t cover a US$400 emergency expense, or are “just getting by” or worse.
Even before the pandemic hit, the picture wasn’t pretty. In October, when the fourth-quarter survey was conducted, 42% of employed respondents reported fitting at least one of these descriptions, while over 8% said they fit all three. Those figures jumped to 72% and 20% for low-income workers.
But by April, tens of millions of people who had jobs in October lost them as most nonessential businesses across the U.S. either closed or reduced their services. The unemployment rate shot up to 14.7% that month – the highest since the Great Depression – and is expected to climb further when the May data are released on June 5.
The Fed’s April survey, however, paints an even broader picture of the economic impact of the pandemic. In that survey, about 28% of the previously employed respondents said they either lost their job, were being furloughed, had their hours cut or were taking unpaid leave. This has been financially devastating to many, with 68% of this group reporting one of the stresses listed above and 28% saying they were experiencing all three, regardless of income level.
Forgoing medical care
Separate questions in the surveys demonstrate just how strong the link is between financial and physical health.
The October survey also asks those respondents if they had skipped a doctor’s visit during the previous 12 months because of the cost. More than 20% of those who reported one of these financial stresses said they had, while almost 46% of those with all three said so.
In April, the Fed asked a more timely question: “If you got sick with symptoms of the coronavirus, would you try to contact a doctor?”
A third of those respondents who also said they’re experiencing all three financial stresses said “no.” This is especially significant because, unlike the October question, it describes a current, known threat, rather than referring to a previous medical issue of unknown severity. And the widely reported urgency and seriousness of the coronavirus suggests someone wouldn’t treat the decision to seek a doctor’s care or advice lightly.
Relieving the stress
That was back in April, less than a month into the coronavirus lockdowns. If the same questions were asked today, I believe the numbers would look a lot worse.
In the middle of a serious pandemic, we don’t want sick people avoiding treatment because they’re worried they won’t be able to put food on the table. This would likely worsen the spread of the coronavirus and make it a whole lot harder to contain.
As Congress debates additional measures to mitigate the economic and financial effects of the pandemic, it would be wise to keep in mind the connection between financial stress and individual decisions to seek medical care.
Investors could be hit by uneven global stock markets, warns the CEO of one of the world’s largest independent financial advisory organizations.
The warning from Nigel Green, chief executive and founder of deVere comes as stock markets around the world extend their remarkable rallies despite a continuing global public health emergency, economic downturns and financial upheaval, political uncertainty and widespread social unrest.
Wall Street is expected to open higher again on Tuesday – with the benchmark S&P500 less than 10 per cent from its all-time high.
In the Asia-Pacific region and across Europe, all major indices made gains.
Mr Green notes: “Global markets are continuing to rally. This is extraordinary as tensions between the U.S. and China – the world’s two largest economies – are heightened, when the President of the U.S. is threatening to deploy the U.S. army onto the streets of America, and as the global economy attempts to recover due to an ongoing pandemic for which there is still no cure, to name a few of the current factors causing chaos.
“All of this would normally send the markets into tailspin. Yet this time they continue to rally.
“But a closer look at the markets shows the upswing is being fuelled by a handful of companies that reflect the ‘new world’, which is increasingly tech-driven.”
He continues: “This is concerning as some investors could potentially take a significant hit.
“Investors who buy an exchange-traded fund, or ETF, which are investment funds traded on stock exchanges, could be particularly at risk from uneven markets.
“In these highly unusual times, ETFs are the wrong place to invest right now.”
Actively managed funds, says Mr Green, can be “expected to outperform in 2020 and beyond.”
He says: “The world has been ‘reset’ and as it readjusts, we will see new industries, new trends and new highly successful companies emerge – and probably quicker than many might expect.
“To fully capitalize on the major opportunities of this new era, and to mitigate the risks of considerable market imbalance, investors should ‘think active’ to be in the right stock.”
The deVere CEO concludes: “In the current climate, actively managed funds are likely to best position investors to navigate the new world.”
About:
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
As we can see in the H4 chart, after growing towards the resistance level and forming a Shooting Star pattern, EURUSD is reversing. The downside target is at 1.1075. We may assume that after a slight correction the price may continue growing towards 1.1160.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, USDJPY is growing to reach the resistance level again. The current situation implies that the market may break the resistance level and continue moving upwards. In this case, the upside target remains at 108.40. However, there might be another scenario according to which the instrument may fall and return to 107.50.
EURGBP, “Euro vs. Great Britain Pound”
As we can see in the H4 chart, after testing the resistance level and forming a Harami pattern, EURGBP is reversing. The downside target is at 0.8865. After that, the instrument may rebound from the support level and resume the ascending tendency. In this case, the upside target may be at 0.9050.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
EURUSD is trading at 1.1131; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.1125 and then resume moving upwards to reach 1.1255. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 1.1055. In this case, the pair may continue falling towards 1.0965. To confirm further growth, the asset must break the upside border of the Triangle pattern and fix above 1.1165.
BTCUSD, “Bitcoin vs US Dollar”
BTCUSD is trading at 10062.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 9675.00 and then resume moving upwards to reach 11065.00. Another signal in favor of further uptrend will be a rebound from the upside border of a Triangle pattern. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 9055.00. In this case, the pair may continue falling towards 8265.00.
USDJPY, “US Dollar vs Japanese Yen”
USDJPY is trading at 107.71; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 107.40 and then resume moving upwards to reach 108.65. Another signal is favor of further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 107.05. In this case, the pair may continue falling towards 106.25. To confirm further growth, the asset must break the resistance and fix above 108.05, thus completing an Inverted Head & Shoulders pattern.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The EUR/USD currency pair has become stable after prolonged growth. Quotes are currently consolidating. The local support and resistance levels are 1.1100 and 1.1150, respectively. The demand for risky assets is still high amid hopes of a recovery in the global economy. Investors continue to monitor the conflict between Washington and Beijing, as well as mass protests throughout the United States. Positions should be opened from key levels.
Today, the publication of important economic releases is not expected.
Indicators do not give accurate signals: the price has crossed 50 MA.
The MACD histogram is near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.1100, 1.1065, 1.1035
Resistance levels: 1.1150, 1.1180, 1.1200
If the price fixes above 1.1150, further growth of EUR/USD quotes is expected. The movement is tending to the round level of 1.1200.
An alternative could be a decrease in the EUR/USD currency pair to 1.1070-1.1050.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.23235
Open: 1.24889
% chg. over the last day: +1.20
Day’s range: 1.24784 – 1.25543
52 wk range: 1.1466 – 1.3516
There are aggressive purchases on the GBP/USD currency pair. During yesterday’s and today’s trading sessions, the growth of quotes exceeded 200 points. The British pound has reached 4-week highs. The trading instrument is currently consolidating. The key range is 1.2480-1.2550. The demand for risky assets is still high. The British pound has the potential for further growth. We recommend opening positions from key levels.
The news feed on the UK economy is calm.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone and continues to rise, which gives a strong signal to buy GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also indicates the bullish sentiment.
Trading recommendations
Support levels: 1.2480, 1.2425, 1.2365
Resistance levels: 1.2550, 1.2600
If the price fixes above 1.2550, further growth of GBP/USD quotes is expected. The movement is tending to 1.2600-1.2630.
An alternative could be a decrease in the GBP/USD currency pair to 1.2440-1.2400.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.37748
Open: 1.35745
% chg. over the last day: -1.49
Day’s range: 1.35297 – 1.35852
52 wk range: 1.2949 – 1.4668
USD/CAD quotes show a steady downtrend. During yesterday’s and today’s trading sessions, the drop in quotes exceeded 240 points. The recovery of “black gold” prices supports the loonie. The trading instrument is currently consolidating. The local support and resistance levels are 1.3530 and 1.3585, respectively. USD/CAD quotes have the potential for further decline. Positions should be opened from key levels.
The news feed on Canada’s economy is calm.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram is in the negative zone, indicating the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.3530, 1.3450
Resistance levels: 1.3585, 1.3675, 1.3735
If the price fixes below 1.3530, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3460-1.3420.
An alternative could be the growth of the USD/CAD currency pair to 1.3640-1.3660.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.679
Open: 107.584
% chg. over the last day: -0.12
Day’s range: 107.513 – 107.835
52 wk range: 101.19 – 112.41
The technical pattern is still ambiguous on the USD/JPY currency pair. The trading instrument is in a sideways trend. At the moment, the local support and resistance levels are 107.65 and 107.90, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.
The news feed on Japan’s economy is calm.
Indicators do not give accurate signals: 50 MA has started crossing 100 MA.
The MACD histogram is in the positive zone, indicating the bullish sentiment.
Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 107.65, 107.50, 107.35
Resistance levels: 107.90, 108.30, 108.60
If the price fixes below 107.65, USD/JPY quotes are expected to fall. The movement is tending to 107.50-107.20.
An alternative could be the growth of the USD/JPY currency pair to 108.20-108.50.
