As we can see in the H4 chart, after growing towards the resistance level and forming a Shooting Star pattern, EURUSD is not expected to reverse. We may assume that after a slight correction the price may continue growing towards 1.1075.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after re-testing the resistance level and forming a Harami pattern, USDJPY has started to reverse. The current situation implies that after a slight correction the market may break the resistance level and continue moving upwards. In this case, the upside target may be 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, the pair is testing the resistance level again. After forming a Shooting Star pattern, EURGBP is reversing. The correctional target is at 0.8935. After that, the instrument may continue the ascending tendency. In this case, the upside target may be at 0.9055.
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.
BTCUSD is trading at 9142.00; 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 9015.00 and then resume moving upwards to reach 9775.00. Another signal in 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 8705.00. In this case, the pair may continue falling towards 8105.00.
USDCAD, “US Dollar vs Canadian Dollar”
USDCAD is trading at 1.3766; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3775 and then resume moving downwards to reach 1.3575. Another signal in favor of further downtrend will be a rebound from the upside border of a Triangle pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.3895. In this case, the pair may continue growing towards 1.3985. To confirm further decline, the asset must break the downside border of the Triangle pattern and fix below 1.3675.
NZDUSD, “New Zealand Dollar vs US Dollar”
NZDUSD is trading at 0.6187; 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 0.6165 and then resume moving upwards to reach 0.6315. 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 0.6120. In this case, the pair may continue falling towards 0.6030.
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 single currency has continued its growth against the greenback. EUR/USD quotes have overcome the key mark of 1.1000. The European Commission has proposed a package of measures 1.85 trillion euros worth to restore the economy from the COVID-19 epidemic. According to the Fed’s Beige Book, economic activity has slowed down sharply in most regions. Investors continue to monitor the conflict between Washington and Beijing. Today, important economic reports from the United States are in the focus of attention. We recommend opening positions from key levels.
News Feed on the US Economy for 2020.05.28:
– Report on durable goods orders at 15:30 (GMT+3:00);
– Preliminary data on the country’s GDP at 15:30 (GMT+3:00);
– Initial jobless claims at 15:30 (GMT+3:00);
– Pending home sales 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, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator has started exiting the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.
Trading recommendations
Support levels: 1.0990, 1.0940, 1.0915
Resistance levels: 1.1035, 1.1060
If the price fixes above the level of 1.1035, further growth of EUR/USD quotes is expected. The movement is tending to 1.1060-1.1080.
An alternative could be a decrease in the EUR/USD currency pair to 1.0950-1.0930.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.23337
Open: 1.22588
% chg. over the last day: -0.66
Day’s range: 1.22484 – 1.22812
52 wk range: 1.1466 – 1.3516
Yesterday, there were aggressive sales on the GBP/USD currency pair. The British pound is under pressure due to rumors of negative interest rates. At the moment, the technical pattern is ambiguous. GBP/USD quotes are consolidating in the range of 1.2240-1.2280. Financial market participants expect important economic releases from the US. We recommend opening positions from key levels.
The news on the UK economy is calm.
Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.
Trading recommendations
Support levels: 1.2240, 1.2205, 1.2160
Resistance levels: 1.2280, 1.2325, 1.2360
If the price fixes above 1.2280, GBP/USD quotes are expected to grow. The movement is tending to 1.2320-1.2350.
An alternative could be a decrease in the GBP/USD currency pair to 1.2210-1.2180.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.37758
Open: 1.37504
% chg. over the last day: -0.19
Day’s range: 1.37342 – 1.37811
52 wk range: 1.2949 – 1.4668
The USD/CAD currency pair has become stable after a sharp drop since the beginning of this week. The loonie is currently consolidating. There is no defined trend. The local support and resistance levels are 1.3730 and 1.3780, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of “black gold” prices. We do not exclude a further decline in the USD/CAD currency pair. 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 is below the %D line, which also gives a signal to sell USD/CAD.
Trading recommendations
Support levels: 1.3730, 1.3700
Resistance levels: 1.3780, 1.3820, 1.3870
If the price fixes below 1.3730, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3700-1.3670.
An alternative could be the growth of the USD/CAD currency pair to 1.3820-1.3850.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.563
Open: 107.730
% chg. over the last day: +0.21
Day’s range: 107.687 – 107.901
52 wk range: 101.19 – 112.41
The USD/JPY currency pair is still being traded in a prolonged flat. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 107.65 and 107.90, respectively. Investors expect additional drivers. The conflict between the US and China remains in the spotlight. Today, financial market participants will assess important economic reports from the US. 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 neutral zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 107.65, 107.40, 107.10
Resistance levels: 107.90, 108.95
If the price fixes above 107.90, USD/JPY quotes are expected to grow. The movement is tending to 108.10-108.30.
An alternative could be a decrease in the USD/JPY currency pair to 107.40-107.20.
– M2 Velocity is the measurement of capital circulating within the economy. The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth. When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.
The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market collapse. It appears to our researchers that these extended periods of zero interest rates deflate the capability of money circulating throughout the economy and engaging in real growth opportunities for investment and capital inflation.
It also suggests that the US Federal Reserve, while attempting to support the US economy and global markets, maybe destructively engaging in policy that removes the capital function from the markets in a systematic process. Eventually, something will break related to M2 Velocity and/or the global economy. As more capital pours into less liquid assets and/or broader investment funds and Bonds, this process ties capital up into assets that take investment away from Main Street and the lower/middle class. There is less capital available to support the ground level economy as more and more capital ends up buried in longer-term investment assets.
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VELOCITY OF M2 MONEY STOCK
US FEDERAL FUNDS RATE CHART
We believe the collapse of the M2 Velocity rate is similar to a slow decline of economic capacity and output over a longer period of time. We believe this process will likely end in a series of defaults and bankruptcies as a result of capital being stored away into longer-term assets and investments (pensions, investment funds, and other types of longer-term assets). As this capital is taken away from the core engine of economic growth (main street and startups), the process of slowly starving the economy begins.
We believe we’ve already entered a period of decline that has lasted at least 15+ years and the “blowout process” that ends this decline will be somewhat cataclysmic. One way or another, the function of capital must return to levels of activity that supports a ground-level engagement of economic growth and opportunity. A healthy balance of capital available to all levels of society and deployed in means to support growth and opportunity is essential for the proper health and future advancement of global economies.
It appears that after 2008-09, the global economy disconnected from reality as investors began relying on institutional level investments and speculation in large scale assets instead of ground-level investments and core economic function. This translates into a very euphoric mode for stocks and commodities where capital chases capital around the planet seeking out undervalued and opportunistic investments… until…
Pay attention to what happens over the next 4 to 5+ years related to the COVID-19 virus event. We believe this virus event could be a “monkey wrench” in the capabilities and functions of the global economy over the next 5+ years. Pay attention to what is really happening as capital plays the “dog chasing its tail” routine and the central banks attempt to stimulate economic activity by printing more and more money. If you understand what we are trying to suggest in this article – printing more and more money at this stage of the game is like saying “diving out of the 20th-floor window is not enough – let’s go up to the 50th floor and give it a try”.
Hang tight, there are going to be some very interesting and big price swings over the next 4+ years in the US and global markets. Skilled technical traders should prepare for the opportunity of a lifetime if they understand what to watch for and how to protect assets.
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Please take a moment to visit TheTechnicalTraders.com to learn more. I can’t say it any better than this… I want to help you create success while helping you protect and preserve your wealth – it’s that simple.
Many stock market investors believe that prices have already bottomed. Numerous banks, brokers and financial firms have issued statements saying as much.
Indeed, the May Elliott Wave Theorist, a monthly publication which has offered analysis of financial and social trends since 1979, noted:
On April 28, Bloomberg interviewed four money managers to answer the question of “Where to Invest $1 Million Right Now.” Cash was not mentioned.
All these professional financial observers might be right in their assessment that the bottom is in for stocks.
Then again, the stock market rise since the March 23 low might be a bear-market rally.
If so, it certainly has “done its job,” meaning, as one of our global analysts put it in Elliott Wave International’s May Global Market Perspective (a monthly publication which covers 40+ worldwide markets):
The job of [the first, big bear-market] rally is to recreate the optimism that existed at the previous highs.
One particular sentiment that the rally has “recreated” is known by the acronym FOMO, which stands for the “fear of missing out.”
A little background: Toward the end of 2019, the FOMO sentiment was prevalent. Indeed, our December 2019 Elliott Wave Financial Forecast (a monthly, U.S.-focused publication which covers stocks, bonds, gold, silver, the U.S. dollar, the economy and more) showed this chart and said:
Last week, the percentage of bulls polled in Investors Intelligence Advisors’ Survey rose to 58.1, a new 13-month extreme. … Last month we talked about the return of FOMO, the fear of missing out on stock gains; its last major outbreak occurred as stocks approached their January 2018 highs. In November, FOMO became far more entrenched. One Bloomberg commentator called it “the age-old fear of missing out” and stated, “The end of the year is coming, when investment managers will be judged on their performance. Those who are behind have an incentive to clamber into the market now, while there is still time.” In our experience, “to clamber” is generally not a sound investment strategy.
Day trading – it’s back.
As you’ll probably recall, day trading became so popular during the late 1990s that some market participants were selling their homes to raise the funds to participate.
It didn’t end well. After peaking in March 2000, the NASDAQ went on to lose 78% of its value.
Yet, even after the dot.com bust, day trading never went away. There was a marked resurgence in the months leading up to the 2007 stock market top. But, even then, day trading activity was not as intense as it was around the time of the dot.com bubble.
However, the wild speculation that was taking place around the time of the February 2020 top did call to mind the 1990s.
The March Elliott Wave Financial Forecast, a monthly publication which covers major U.S. financial markets, the economy and cultural trends, showed this chart and said:
The middle graph in this chart shows that investors’ amazing willingness to bet on stocks with borrowed money lasted right through the top of the bull market. … The bottom graph shows when SentimenTrader.com’s Options Speculation Index jumped to 1.5, its highest total in 20 years. That index divides the total number of bullish transactions (call buying and put selling) by the total number of bearish transactions (put buying and call selling). …
For anyone who wondered about where the small day traders who made the 1990s so wild went, meet the 2020 version.
Did the February / March market meltdown make the day traders go away?
Hardly.
Here’s a May 22 excerpt from Barron’s:
Day Trading Has Replaced Sports Betting as America’s Pastime.
Day trading among individual investors has taken off.
A full-blown retail mania has taken hold in buying and selling small lots of stocks and options. … Many Americans used their coronavirus stimulus checks to trade stocks.
So, no, day traders are as hopeful as ever.
Even a market meltdown that saw the S&P 500 drop nearly 35% in just a month or so was not enough to scare them off.
This speaks to the extreme level of optimism that is now in play and correlates with the stock market’s Elliott wave pattern.
As the book, Elliott Wave Principle: Key to Market Behavior, notes:
The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure.
Learn more about the Wave Principle by reading the entire online version of Elliott Wave Principle: Key to Market Behavior.
You can gain instant access, 100% free.
All that’s required is a free Club EWI membership.
This article was syndicated by Elliott Wave International and was originally published under the headline Stocks: What to Make of the Day-Trading Frenzy. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
With all the talk of the U.S. economy being “closed,” certain sectors are still going strong – particularly, as the Mexican American community organizers Rodrigo Camarena and Lorena Korusias wrote in City Limits, those staffed by the Mexican workers doing “some of the toughest jobs in our economy.”
Mexican immigrants are more likely than other workers to be employed in the construction, maintenance, service and production industries, according to U.S. Census data. These are all “essential” sectors of the pandemic economy, though many pay barely above minimum wage.
Employment during this crisis has sustained households that are dependent on every paycheck, both in the United States and back home in Mexico.
The rise in remittances is also due, in part, to a steep decline in the value of the Mexican peso, according to a recent report by the Center for Latin American Monetary Studies, or CEMLA.
In early March, the purchasing power of $1 rose from 19.42 to 25.35 pesos, a 30.5% increase in just three weeks. That means every U.S. dollar sent to Mexico goes farther. During that same time, the CEMLA report says, the average remittance transfer by Mexican migrants in the U.S. increased from $315 to $343.
This particular increase in sending occurred before shelter-in-place orders took effect in major immigration hubs like California and Texas. In the report, CEMLA economic statistics manager Cervantes Gónzalez says migrants took advantage of favorable exchange rates before the economy began closing to maximize their families’ purchasing power.
Obligation
On March 23, Mexico began its own gradual shutdown, with the government closing schools, halting many kinds of nonessential business and requiring most people to work from home.
That’s not possible for the estimated 56% of Mexicans who work as domestic laborers, in agriculture and in other informal jobs that lack social security. Their incomes have simply disappeared during the pandemic.
The decline in economic activity in Mexico may have compelled family members working abroad to send more money home, says Gabriela Siller, head economist at Banco BASE, a Mexican bank.
Remittance senders have always felt obligated to their loved ones back home, research shows. It’s likely such feelings of care and responsibility would only increase in a crisis such as COVID-19.
A durable financial relationship
In 2019, the World Bank estimated that global remittances exceeded $550 billion – a massive wealth transfer. And the U.S.-Mexico remittance corridor is one of the world’s most significant, with Mexico being the third-largest receiver of remittances.
So far, it’s also proving to be remarkably durable. Remittances from the U.S. are down in many other Caribbean and Latin American countries.
There’s reason to think cash transfers to Mexico will stay strong. Feelings of familial obligation won’t change due to the pandemic, and the exchange rate between the U.S. dollar and the Mexican peso remains favorable for remittance senders. These factors should keep funds flowing south.
But this financial relationship may still suffer as a result of COVID-19. Soaring unemployment in the U.S. is hitting Latino service workers and small businesses hard, as are COVID-19 infections. Eventually, wage loss and sickness could force even the most loving, responsible and reliable person to send less money back home.
The qualities that have made Jacinda Ardern New Zealand’s most popular prime minister in a century were on display this week as she took an earthquake in her stride during a live television interview.
“We’re fine,” she declared cheerfully as the 5.9-magnitude quake shook New Zealand’s parliament house in Wellington for 15 seconds. “I’m not under any hanging lights.”
Her coolness under pressure, self-discipline and the decisiveness of her government’s response to the COVID-19 pandemic has led some to call Ardern the most effective national leader in the world.
But the key ingredient to her popularity and effectiveness is her authenticity.
In the words of Helen Clark, New Zealand’s prime minister from 1999 to 2008, Ardern is a natural and empathetic communicator who doesn’t preach at people, but instead signals that she’s “standing with them”:
“They may even think: ‘Well, I don’t quite understand why the government did that, but I know she’s got our back.’ There’s a high level of trust and confidence in her because of that empathy.”
These insights are confirmed by my own research into authentic leadership.
How we respond to authentic leaders
As a lecturer in business leadership, I’m particularly interested in the value of authenticity in the workplace. Part of my research (with colleagues Steven Grover and Stephen Teo) has involved surveying more than 800 workers across Australia to find out how the behaviour of their leaders shapes their feelings about work.
For better or worse, leaders often represent the entire organisation to their employees. How we feel about our boss transfers into how we see the company as a whole, just as political leaders represent the nation.
The results from that survey were decisive: employees were, on average, 40% more likely to want to come to work when they saw their line manager as an authentic leader; and those who came to work because they wanted to were 61% more engaged and 60% more satisfied with their jobs.
At a time when careers routinely span multiple organisations and the nature of work becomes more transient, these results demonstrate the value of positive personal connections in the workplace.
Our research also sheds light on four qualities we value in authentic leaders.
But first, let’s dispel a common misconception.
What authentic leadership isn’t
Authentic leadership doesn’t just mean “being true to yourself”. This notion has led some to describe the likes of Donald Trump as authentic.
But authentic leaders are not simply callous, self-serving individuals with no social filter. According to Claudia Peus and her co-authors of a seminal 2012 article on authentic leadership:
“Authentic leaders are guided by sound moral convictions and act in concordance with their deeply held values, even under pressure. They are keenly aware of their views, strengths, and weaknesses, and strive to understand how their leadership impacts others.”
1. Authentic leaders know themselves
Authentic leaders manifest the Ancient Greek maxim to “know thyself”. They know what truly matters to them, and their own strengths and weaknesses.
Our values are often hidden assumptions; revealing them requires an active and honest process of personal reflection.
Before we can lead others, we must first lead ourselves.
2. They follow a moral compass
Authentic leaders have the courage to stand up and act on their values, rather than bending to social norms. Doing what you feel is right is rarely easy, especially when lives are on the line, but that’s when it matters the most.
An example comes from the last time businesses around the world were struggling this badly, the 2008 global financial crisis. When the board of US-based manufacturing company Barry-Wehmiller wanted to discuss layoffs, chief executive Bob Chapman refused.
Instead, Chapman asked everyone to take four weeks’ unpaid leave, saying: “It’s better that we should all suffer a little than any of us should have to suffer a lot.” The company has since gone from strength to strength under his “truly human leadership”.
3. They appreciate their own biases
Authentic leaders are aware of their own biases and strive to see things from multiple viewpoints. We cannot know all sides to an issue and must work to understand and respect others’ perspectives before forming opinions or making decisions.
Acting in the best interests of the collective requires a lucid and compassionate understanding of how our actions affect other people.
4. They are open and honest
Authentic leaders cultivate open and honest relationships through active self-disclosure. Dropping one’s guard and letting people in isn’t always easy, especially in the workplace. Yet only when we allow ourselves to be vulnerable in front of another person can they open up to us in return.
Australian prime minister Scott Morrison appears to have learnt this lesson since the beginning of the year, when his response to Australia’s catastrophic bushfire season led to unfavourable comparisons with Ardern.
Support for an authentic leadership approach isn’t unanimous. A notable critic, professor Jeffrey Pfeffer, has stated that: “Leaders don’t need to be true to themselves; in fact, being authentic is the opposite of what they should do.”
But our research reveals the power of authenticity to unite people behind a collective cause. Relationships built on mutual trust and shared values are the key.
Jacinda Ardern’s unprecedented popularity mirrors these results. When we see authentic leadership, we know instinctively that we prefer it.
As we see in the H4 chart, after failing to 50.0% fibo at 1.2030, the descending correctional wave has transformed into a rising channel, which may still be considered as a pullback. The key upside target in the nearest future may be the high at 1.2648. After breaking it, the pair may continue growing towards the next target at 50.0% fibo (1.2892). However, as long as the price is moving below the high, there is a possibility of one more descending wave to reach 50.0% and 61.8% fibo at 1.2030 and 1.1881 respectively.
The H1 chart shows a new ascending correction after the convergence on MACD, which has already reached 50.0%. After a slight local pullback, the pair may continue growing towards 61.8% and 76.0% fibo at 1.2424 and 1.2505 respectively. The support is the low at 1.2072.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, EURJPY has stopped its rising movement at 50.0% fibo at 118.63. the curet pullback may get the price back to 23.6% fibo. However, after completing the pullback, the asset may start a new ascending impulse towards 50.0% and 61.8% fibo at 118.63 and 119.63 respectively. The support is the low at 114.40.
The H1 chart shows that after reaching the high at 118.52, the instrument has started a new pullback. The downside targets are 50.0% and 61.8% fibo at 116.92 and 116.55 respectively.
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.
After finishing the ascending wave at 1.0995, EURUSD has completed the descending impulse towards 1.0955. Possibly, the pair may trade upwards to reach 1.0975 and then fall to break 1.0944. Later, the market may continue moving inside the downtrend with the target at 1.0890.
GBPUSD, “Great Britain Pound vs US Dollar”
After completing the ascending wave at 1.2360, GBPUSD is moving downwards Possibly, the pair may break 1.2313 and then continue trading downwards with the target at 1.2260. After that, the instrument may form one more ascending structure to return to 1.2313 and test it from below.
USDRUB, “US Dollar vs Russian Ruble”
USDRUB is consolidating not far from the downside border. Possibly, the pair may break 70.60 and then continue trading inside the downtrend with the short-term target at 69.50. Later, the market may start a new correction towards 72.72.
USDJPY, “US Dollar vs Japanese Yen”
USDJPY has finished anther descending structure at 107.35, thus forming a new consolidation range. Today, the pair may grow towards 107.64 and then fall to break 107.30. After that, the instrument may continue falling with the target at 106.66.
USDCHF, “US Dollar vs Swiss Franc”
After completing the descending wave at 0.9650, USDCHF is moving upwards to reach 0.9686. Later, the market may fall towards 0.9666, thus forming a new consolidation range between these two levels. Possibly, the pair may break this range to the upside and continue growing with the target at 0.9720.
AUDUSD, “Australian Dollar vs US Dollar”
After forming another ascending wave at 0.6672, AUDUSD has completed the descending impulse to reach 0.6632 along with the correction towards 0.6655. Possibly, today the pair may break the range to the downside and continue trading downwards with the target at 0.6585.
BRENT
Brent is consolidating not far from the upside border. Today, the pair may break 37.00 and then continue growing towards 39.00. After that, the instrument may correct to reach 30.50 and then resume trading inside the uptrend with the target at 45.50.
XAUUSD, “Gold vs US Dollar”
Gold has completed the correctional wave at 1710.10; right now, it is still consolidating close to the lows. Possibly, the pair may start another decline to reach 1700.00 and then resume trading upwards with the target at 1719.38.
BTCUSD, “Bitcoin vs US Dollar”
BTCUSD continues growing towards 9023.00. Later, the market may correct to return to 8842.00 and then resume trading upwards with the target at 9400.00.
S&P 500
The Index is consolidating at the top. Today, the asset may fall to break 2988.8 and then continue the correction with the target at 2888.6.
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.
During yesterday’s trading session, the greenback weakened significantly against its main competitors. The growth of EUR/USD quotes has exceeded 85 points. Demand for risky assets is still high amid the gradual lifting of restrictions around the world. Additional support is provided by the hope of creating a vaccine against the COVID-19 virus. At the moment, EUR/USD quotes are consolidating in the range of 1.0940-1.0975. Today, financial market participants will assess the Fed’s “Beige Book”, which will show the economic condition of 12 federal districts in a crisis caused by the coronavirus pandemic. We recommend opening positions from key levels.
The Economic News Feed for 27.05.2020:
At 21:00 (GMT+3:00), the Fed’s “Beige Book” will be published.
We also recommend paying attention to the speech by the head of the ECB.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator has started exiting the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.
Trading recommendations
Support levels: 1.0940, 1.0915, 1.0870
Resistance levels: 1.0975, 1.1000, 1.1030
If the price fixes above 1.0975, further growth of EUR/USD quotes is expected. The movement is tending to 1.1020-1.1040.
An alternative could be a decrease in the EUR/USD currency pair to 1.0915-1.0880.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.21825
Open: 1.23337
% chg. over the last day: +1.18
Day’s range: 1.22898 – 1.23390
52 wk range: 1.1466 – 1.3516
The British pound has strengthened significantly against the US currency. Yesterday, the growth of GBP/USD quotes exceeded 150 points. The trading instrument has reached two-week highs. The demand for risky assets remains high. Currently, the GBP/USD currency pair is consolidating. The local support and resistance levels are 1.2280 and 1.2325, respectively. The British pound has the potential for further growth. We expect the Fed’s “Beige Book”. 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, but below the signal line, which gives a weak 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: 1.2280, 1.2235, 1.2190
Resistance levels: 1.2325, 1.2360
If the price fixes above 1.2325, further growth of GBP/USD quotes is expected. The movement is tending to 1.2360-1.2400.
An alternative could be a decrease in the GBP/USD currency pair to 1.2240-1.2220.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.39773
Open: 1.37758
% chg. over the last day: -1.48
Day’s range: 1.37588 – 1.38052
52 wk range: 1.2949 – 1.4668
There are aggressive sales on the USD/CAD currency pair. Yesterday, the loonie added over 200 points against the US dollar. The trading instrument has overcome and fixed below the key extremes. At the moment, USD/CAD quotes are consolidating in the range of 1.3755-1.3810. The Canadian dollar has the potential for further growth relative to the greenback. We recommend paying attention to the dynamics of “black gold” prices, as well as the news feed on the US economy. Positions should be opened from key levels.
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: 1.3755, 1.3700
Resistance levels: 1.3810, 1.3870, 1.3900
If the price fixes below 1.3755, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3700-1.3680.
An alternative could be the growth of the USD/CAD currency pair to 1.3850-1.3880.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.664
Open: 107.563
% chg. over the last day: -0.15
Day’s range: 107.363 – 107.616
52 wk range: 101.19 – 112.41
USD/JPY quotes are consolidating. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 107.40 and 107.65, respectively. Financial market participants expect additional drivers. Today, the Fed’s “Beige Book” is in the spotlight. We also 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: the price has crossed 100 MA.
The MACD histogram is in the negative zone, indicating the bearish 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: 107.40, 107.10, 106.85
Resistance levels: 107.65, 107.90, 108.95
If the price fixes below 107.40, USD/JPY quotes are expected to fall. The movement is tending to the round level of 107.00.
An alternative could be the growth of the USD/JPY currency pair to 107.90-108.10.
