InvestMacro

By Orbex

US/EU Trade Tensions Resurface

Over recent weeks, focus has been on the rising tensions between the US and China and the rising possibility that trade negotiations could be impacted. However, over the weekend the market has been confronted once again by the prospect of fresh trade tensions between the US and Europe.

Talk of potential US tariffs on EU car imports has resurfaced in recent days. Trump has warned that unless the EU lowers its tariffs on US lobsters such measures could be taken. Seemingly with not enough on his plate between the ongoing COVID-19, battle, tensions with China, and major civil unrest at home, Trump is now looking to pick a fight with the EU once again.

Lobster Ultimatum

Speaking at a commercial fishing event in Maine, Trump claimed that the EU had been

“almost as bad over the years as China in terms of trade”

Trump went on to explain that the EU benefitted from duty-free lobster imports from Canada as a result of the 2017 Canadian-EU trade agreement.

However, US lobsters come with an 8% levy. US exporters have been complaining increasingly about their disadvantages. This is especially since China applied a 25% tariff to US lobster imports which has been active since 2018.

Trade Negotiations Underway

The US and EU have been locked in negotiations over the last year as work continues to agree a “mini trade deal”.

Discussions have been fraught and saw the US applying 25% tariffs across a range of goods. This is along with threats to apply tariffs to EU vehicles and car parts. This has been a consistent threat made by Trump during his presidency and while he has yet to follow through. The prospect of such a move poses a stark threat to the EU motor export industry which has been in sharp decline over the last two years.

Trump has been highly critical of the EU over the trade surplus they enjoy over the US which rose by around $30 billion over the three years through 2019 according to US Census Bureau Data.

Airlines Still A Sticking Point

The EU had seeked $10 billion in retaliation funds over its claim that the US government was subsidizing airliner Boeing. The WTO was due to rule on the claim over the summer. However, the US took steps to pass legislation effectively ending the 40% tax break it had given aerospace manufacturers.

US Trade Representative Robert Lighthizer issued a statement saying:

“with Washington state’s repeal of this relatively minor tax reduction, the United States has fully implemented the WTO’s recommendation, ending this dispute. This step ensures that there is no valid basis for the EU to retaliate against any US goods.”

However, the US is still pushing for a WTO resolution over its claims against the EU for state funding of airliner Airbus. The US applied record tariffs of $7.5 billion on EU goods over its complaints regarding Airbus, sanctioned by the WTO. Tensions are clearly rising between the US and the EU. The market now awaits the EU response to America’s lobster ultimatum.

EURUSD Testing Bear Channel Top

The rally in EURUSD has seen price breaking above both the 1.0982 and 1.1228 resistance levels in recent weeks. However, for now, price has been capped by the bearish channel resistance line which capped the rally in March also.

While there is room for further correction lower here, the focus remains on further upside. While the 1.0982 level holds as support, keeping a further retest of the 1.1487 highs in sight.

By Orbex

By IFCMarkets

Precious metal prices may be affected by the possible strengthening of the dollar

As a rule, the value of precious metals moves in the opposite direction to the dollar index. Investors regard them as an alternative to the American currency. In May, the number of new jobs in the US non-agricultural sector (Non Farm Payrolls) increased unexpectedly by 2.5 million. This is much better than the forecast of job cuts by 8 million, and also better than the April figure (-20.7 million). Good labor-market performance may indicate a recovery of the US economy hit by the coronavirus pandemic.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By The Life Science Report – Source: Bill Newman of Mackie Research for Streetwise Reports   06/05/2020

Mackie Research believes Blockchain Holdings’ TraceSafe tracking platform could tap into the “exceptionally large market” for contact tracing during the Covid-19 pandemic.

Note: This article is not research and any companies mentioned are not rated.

TraceSafe Technologies Inc. is a wholly owned subsidiary of Blockchain Holdings Ltd. (BCX:CSE), and owns 100% of the rights and interests in the real-time location tracking technology known as TraceSafe. TraceSafe includes original hardware such as wearable products, like a bracelet band or an access card, which has an embedded chip that can track the wearer’s location.

Also, over a 10-year period, TraceSafe has developed a robust and secure cloud-to-device platform that is designed to be highly flexible. This allows the technology to be tailored to many different applications, including contact tracing, quarantine management and real-time location services for company employees.

The TraceSafe technology has been proven effective for tracking purposes in maternity wards and monitoring senior citizens in care facilities. With the outbreak of the Covid-19 (C-19) pandemic, the TraceSafe technology is now being used to assist governments and health agencies to temporarily track international travelers who are required to self-quarantine. TraceSafe bracelets have already been deployed in Hong Kong, and the company recently announced an expansion into Kuwait.

The potential revenue growth from the government sector is large, but the potential of the corporate/enterprise sector could be even larger. TraceSafe is in discussions with multiple companies who need real-time contact-tracing technology to aid in social distancing in the workplace. This provides workers with a level of safety while allowing companies to reopen.

Given the urgent need for companies to resume operations, we believe the emerging category of health and safety wearable technology could be an exceptionally large market, providing TraceSafe the opportunity to continue its rapid expansion.

Key Catalysts/Opportunities

• TraceSafe Self-Quarantine Monitoring System: TraceSafe technology is ideal for monitoring international travelers who are required to quarantine after travel. The self- monitoring management system registers a user through an identification bracelet. The bracelet tracks the time and location of the user and the logs are sent to a central monitoring system. TraceSafe allows a user to declare once they have entered quarantine, and subsequently prompts periodic check-ins. The tag is inexpensive to produce and is disposable, which provides a level of privacy to the user after the quarantine period has ended.
• Government Market: Already Deployed in Hong Kong; Rapidly Expanding into Other Countries: The Hong Kong government is already using TraceSafe disposable bracelets to manage and enforce its quarantine program for foreign visitors. Over 100,000 bracelets have already been sold in Hong Kong. Based on the success of this program, TraceSafe expects to expand into multiple countries in the coming weeks and months.On May 21, 2020, the company announced a pilot program with the government of Kuwait to utilize TraceSafe for a safety and contact-tracing program across the country’s food delivery workforce. The company also announced a pilot project with a Southeast Asian country (confidential at this time) to use TraceSafe for self-quarantine management.

  TraceSafe is in talks with over 20 other governments located around the world that are considering the deployment of a tracking pilot project.

• Corporate Market: Real-Time Tracing Allows Businesses to Reopen: Corporations are proactively seeking real-time contact tracing technology to allow for the continuation of business during the C-19 pandemic. The system will alert those who may have been near a coworker who tested positive for C-19, allowing unexposed workers, and the corporation, to continue operating. Potential clients include manufacturers, schools and shopping centers.
• TraceSafe Announces Contract with the Toronto Wolfpack: On June 1, 2020, TraceSafe announced it has executed a contract with the Toronto Wolfpack Rugby League Football Club to supply wearable tracking products and services to staff and fans for the 2020–2021 season. This should allow Lamport Stadium to safety reopen for training and future games. TraceSafe does not require the use of the fans’ mobile phones, thereby eliminating privacy concerns.
• New Chief Revenue Officer: Gordon Zeilstra has been appointed CRO. Gordon has over 20 year of experience and was previously with SAP, Taleo and Monster.com.

Details

• TraceSafe Bracelet/Tag Are Low Cost and Disposable: TraceSafe offers a complete cloud-to-device solution with real-time location tracking that gives instant alerts and notifications to administrators and users. The bracelet is tamper-proof and paired to a user’s mobile app, which regularly sends location data to the cloud. The tags are inexpensive to manufacture and are designed to be disposed of after use, ensuring privacy for the user. The bracelets are hospital-grade, hypoallergenic, waterproof and utilize the Bluetooth low-energy platform, with a battery life that typically lasts about 20 days.
• Hardware and Software Revenue Streams: TraceSafe manufactures and sells its propriety hardware, including the disposable bracelet bands. The company will also receive revenue from SaaS (software as a service) licensing.
• Airbeam Wireless Technologies: Blockchain owns a 13% equity stake in Airbeam Wireless Technologies. Airbeam is a private, Canada-based company that is a manufacturer of 5G semiconductors and a small-cell network innovator. Airbeam recently completed an equity financing at a price of US$1.00 per share (~CA$1.38/sh), which values Blockchain’s equity interest at ~CA$13.5 million. Blockchain sees large upside from its passive investment in Airbeam.

Note: As Newman points out, the size of the government market is large but the potential size of the corporate sector is much, much larger, as shown in the slide below taken from a recent presentation from TraceSafe. With the Toronto Wolfpack contract, TraceSafe has only just begun to tap into the enterprise/corporate market.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Bill Newman: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. Mackie Research does not have a banking relationship with any company mentioned in this article. I determined which companies would be included in this article based on my research and understanding of the sector.
2) Mackie Research: This article is not research and any companies mentioned are not rated.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Blockchain Holdings. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Blockchain Holdings.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blockchain Holdings, a company mentioned in this article.

( Companies Mentioned: BCX:CSE,
)

By Orbex

The euro currency gave back some gains on Friday, closing on a bearish note.

But, this came right after prices reached a new three-month high of 1.1382.

Despite the pullback, the bias in EURUSD remains to the upside. Unless there are signs of a lower high forming, EURUSD remains on track to post further gains.

Forming a lower high, of course, will change this view. It would put the euro on a path towards a correction lower.

Minor support is seen at 1.2378 which could stall prices from declines. But a close below this level might accelerate declines down to 1.1132.

By Orbex

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After finishing another ascending structure at 1.1380, EURUSD is correcting downwards to reach 1.1270. Possibly, the pair may reach this level and then grow towards, thus forming a new consolidation range between these two levels. If later the price breaks the range to the downside, the market may fall to reach 1.1174; if to the upside – resume trading upwards with the target at 1.1400.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading upwards. Today, the pair may reach 1.2740 or even extend this ascending structure up to 1.2770. After that, the instrument may start a new decline with the target at 1.2615.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is falling to reach 67.55. Later, the market may resume growing to break 68.40 and then continue the correction towards 70.00. After that, the instrument may resume trading inside the downtrend.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is correcting towards 109.35. Possibly, the pair may reach this level and then form one more ascending structure with the target at 110.10. Later, the market may start another correction towards 108.77.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is still growing towards 0.9666. After that, the instrument may start a new correction with the target at 0.9600.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is growing towards 0.7020. Possibly, the pair may reach this level and then start another correction to break 0.6926. Later, the market may continue falling with the target at 0.6787.

BRENT

Brent is still growing towards 43.46. After that, the instrument may correct to break 38.85 and then continue falling with the target at 33.00. Later, the market may resume trading upwards to reach 45.50.

XAUUSD, “Gold vs US Dollar”

Gold is correcting to test 1690.37 from below. Later, the market may continue forming the third descending wave with the target at 1658.25. After that, the instrument may start another growth to return to 1690.40 and then resume trading downwards to reach 1600.00.

BTCUSD, “Bitcoin vs US Dollar”

After completing the ascending wave at 9700.00, BTCUSD is consolidating around this level. If later the price breaks the range to the upside, the market may continue the correction to reach 10000.00; if to the downside – resume trading downwards with the target at 9100.00.

S&P 500

The Index has completed the ascending wave at 319.4; right now, it is consolidating near the highs. Possibly, today the asset may fall to reach 3125.5 and then form one more ascending structure with the target at 3252.7.

Article By RoboForex.com

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.

By Orbex

Last week’s highlights

Australia Q1 GDP contracts

Australian GDP contracted for the first time since 2011 in the three months ending March 2020. Economic activity during the period fell 0.3%, which was in line with the median forecasts.

This follows a 0.5% expansion in the previous quarter.

On a yearly basis, Australia’s GDP grew 1.4%, slowing from a 2.2% increase earlier. In a separate report, retail sales plunged 17.7% in April. The data was somewhat better than the forecasts of a 17.9% decline.

US manufacturing and services activity remain in contraction

The services sector contracted at a slower pace in May than economists’ predictions. The ISM’s non-manufacturing PMI rose to 45.4, rising from 41.8 in April.

The employment index in the sector rose slightly to 31.8 from 30.0 previously.

Earlier in the week, the manufacturing PMI saw a strong recovery. Manufacturing activity measured by ISM rose to 43.1 from 41.5 in the previous month.

Eurozone private sector continues to remain in contraction

Private sector business in the eurozone continues to reel under the effects of the pandemic lockdown.

The latest survey results from IHS Markit showed that the final composite index rose to 31.9 in May. This follows the indicators hitting a record low of 13.6 in April.

According to the report, the eurozone GDP might contract by over 9% during this year.

Bank of Canada keeps interest rates unchanged

The Central Bank of Canada kept interest rates steady at 0.25% at its meeting last Wednesday. The rate was left steady at 0.5% and the deposit rate at 0.25%.

The central bank said that while the effects of the Covid-19 had peaked, there were still a lot of uncertainties.

The BoC maintained its commitment to supporting the Canadian economy including asset purchases. The BoC also expects lower inflation to persist temporarily before picking up in a couple of months.

ECB expands its Pandemic Emergency Purchase Program

The European Central Bank did not disappoint last week as it expanded on its existing PEPP program. Adding an additional 600 billion euro, the PEPP now stands at 1.3 trillion euros.

The purchases are expected to continue into June 2021. The increase was more than expected and showed the markets that the ECB was committed to pursuing an accommodative policy.

US labor market posts a sharp rebound

The official payrolls report for May saw a surprising rebound in the jobs market. After falling 20.7 million in April, payrolls rose 2.51 million during the month.

This was contrary to the expectations of another month of declines. Unemployment fell from 14.7% in April to 13.3% in May.

Upcoming Economic Events

US Consumer prices to stay flat in May

The monthly inflation report is due on Wednesday, June 10^th. Economists forecast that there will be no change to the inflation report for May. This comes following a 0.3% increase in headline inflation on a month over month basis.

Excluding food and energy, forecasts indicate that the core inflation rate will rise at a slower pace of just 1.3%, following a 1.4% increase a month ago.

Fed to keep policy steady

The Fed Reserve will be holding its monetary policy meeting this week. No major changes are forecast.

The central bank will most likely leave interest rates at 0.25%, unchanged.

Later in the week, however, we will get to see the first-quarter GDP report.

Forecasts are grim, suggesting that year over year growth in the first quarter will rise just 1.9%. This marks a slower pace of increase from 2.2% in the final quarter of 2019.

UK economy to contract 18% in April

The United Kingdom is set to see one of the steepest contractions in recent history. Economists forecast that the monthly GDP will drop over 18% in April.

This coincides with the UK’s economy entering into a lockdown due to the pandemic. However, investors are broadly pricing in this sharp decline so the market impact will be less volatile.

China producer prices to fall at a slower pace

The monthly producer price inflation report out of China is due this week on Wednesday. Economists forecast that inflation at the factory gate will continue to fall, albeit at a slower pace.

Expectations are for the headline PPI to decline by 2.6% in May. This marks a slower pace of decline following a 3.1% slump previously. Consumer prices, on the other hand, are forecast to rise 3.7%, up from 3.3% previously.

Eurozone revised GDP for Q1 to remain unchanged

The revised first-quarter GDP estimates out of the eurozone will be published on Tuesday, June 9^th. Economists do not see any major revisions being made. As a result, the Q1 GDP for the eurozone is set to contract 3.8%.

This will be the same pace of declines as in the earlier forecasts. Besides the revisions to the GDP, the quarterly employment change report is also due.

Forecasts show a 0.3% change, which also marks the same as per the previous revisions.

By Orbex

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the divergence prevented XAUUSD from updating the high at 1764.86 and made the pair start a new decline, which has already reached 23.6% fibo. The next downside targets may be 38.2%, 50.0%, and 61.8% fibo at 1645.06, 1607.83, and 1570.90 respectively.

In the H1 chart, the local convergence made the pair start a new growth, which has already reached 23.6% fibo. The next upside targets may be 38.2% and 50.0% fibo at 1699.00 and 1707.75 respectively. The support is the low at 1670.60.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after breaking the downside border of the Triangle pattern, USDCHF attempted to re-test 50.0% fibo. At the same time, after the local convergence, the pair has started a strong rising impulse to break the resistance at 23.6% fibo (0.9730). if it succeeds, the market may reach the high at 0.9901. However, one shouldn’t exclude another scenario, according to which the instrument may continue falling towards 61.8% fibo at 0.9453.

In the H1 chart, after the convergence, the pair has reached 38.2% fibo. The next rising impulse will be heading towards 50.0% and 61.8% fibo at 0.9663 and 0.9692 respectively. The local support is the low at 0.9542.

Article By RoboForex.com

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.

By TheTechnicalTraders 

– The Huge Non-Farm Payroll number released on Friday, June 5^th, shocked the market.  A massive 2.5 million jobs were created in May 2020.  If you were paying attention to the data, you’ll also understand that 1.87 million new jobless claims just last week.  In fact, over the month of May 2020, a total of 12.58 million jobless claims were filed.  Taken into consideration, the new jobs created in May represent less than 20% of the total job losses over the same span of time.

Our researchers believe the jobs number is representative of a phased reopening of many US states and correlates directly with the extended opportunity for further re-engagement of the US economy over time.  The current social unrest taking place throughout the US will likely result in a new spike in COVID-19 cases as well as extended losses for certain businesses.

The rioting seems to be taking place in more populated states right now – which suggests some real concerns for many of these states in regards to scheduled reopening phases and the potential for a spike in COVID-19 cases.

Before you continue, be sure to opt-in to our free market trend signals 
before closing this page, so you don’t miss our next special report!

US MAP – STATES REOPENING STATUS

As you can see from the US map, below, the number of states that have started to reopen over the past 30+ days exceeds the number of states still shutdown or partially open.  Our researchers believe the migration of the protesters from state to state as well as the continued unrest throughout the US may prompt a new spike in COVID-19 cases – particularly within states that have had the highest transmission rates and are more populated than other states.

US NON-FARM PAYROLL MONTHLY

The May 2020 Non-Farm Payroll number is a welcome positive surge after many months of negative data.  Still, as we suggested near the start of this article, the 2.5 million new jobs created did not offset the 12.58 million jobs lost in May 2020.  Anyone capable of doing simple accounting can figure out that we need to see more continued new job creation levels to begin to offset the massive layoffs and job losses as a result of the COVID-19 shutdown event.

The US Stock market is hungry for any positive news right now, so the markets look at this data as a very positive sign that a recovery will happen and could be a stupendous opportunity for future growth.  Our researchers are still very cautious about this recovery simply because the underlying data is still very negative overall.

US JOBLESS CLAIMS – WEEKLY

As you can see from this Weekly Jobless Claims chart, below, the spike in new jobless claims happened in early April 2020 with 6.86 million new jobless.  Since then, the number of new jobless has continued at levels greater than 2 million per week and have slowly been decreasing.  We are aware that many states are reducing state and educational employment budgets as a result of the COVID-19 virus event.  These budget cuts and layoffs may continue throughout all of 2020 and into 2021 unless a strong recovery event takes place before the end of 2020.

State budgets and the continued risks of a COVID-19 case spike present very real concerns in the minds of our researchers as we have just begun the initial reopening phases for many states.  If our presumptions are correct, the social unrest and rioting may prompt a major spike in COVID-19 cases across many states and present a very real extended shutdown event that could last well into late-Summer.

PUT/CALL RATIO – DAILY

This next chart suggests there is “No Fear” in the markets right now as investors pile into the long trades.  This Put/Call ratio chart highlights one simple fact that the market can stay irrational for much longer than many traders can handle.

The Fed intrusion into the markets on March 20, 2020, created a bullish foundation in the markets.  Traders have piled into this bullish trend over the past 45+ days and this Put/Call chart highlights how extended the rally has gotten recently.  Normally, the extremely low levels on the Put/Call chart would suggest a massive market top setup is about to happen – yet, traders may push the markets further into an irrational bullish phase with their exuberance.

We put together a short yet detailed video that will open your eyes to what the market data and charts are pointing to. If you are short the market of having FOMO (Fear Of Missing Out) on this rally be sure to click and watch this video right after you finish this article.

Concluding Thoughts:

The reason we stay cautiously related to this bullish price trend in the US stock market is that we believe technical patterns have already set up that suggest a downward price cycle must complete before the bottom in the markets is settled.  In Part II of this article, we’ll go over additional charts and data to help you plan for and prepare for the next big move in the markets.

If the markets are able to push much higher after today’s big jobs number, we urge all long/bullish traders to lock in gains with protective stops and to adopt a very cautious outlook going forward.  It appears the markets have over-extended this rally and we are still very concerned that a sudden breakdown in price will happen.

As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is an incredible year for traders and investors.  Don’t miss all the incredible trends and trade setups.

Subscribers of my Active ETF Swing Trading Newsletter had our trading accounts close at a new high watermark. We not only exited the equities market as it started to roll over in February, but we profited from the sell-off in a very controlled way with TLT bonds for a 20% gain. This week we closed out SPY ETF trade taking advantage of this bounce and entered a new trade with our account is at another all-time high value.

Ride my coattails as I navigate these financial markets and build wealth while others watch most of their retirement funds drop another 35-65% during the rest of this financial crisis going into late 2020 and early 2021.

Just think of this for a minute. While most of us have active trading accounts, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during the next bear market, you could lose 25-50% or more of your net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how. One of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position but we do have a way for you or your advisor can take advantage of the market gyrations with our Technical Wealth Advisor investing signals.

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 Passive Long-Term ETF Investing Signals which we issued a new signal for subscribers.

Chris Vermeulen
Chief Market Strategies
Founder of Technical Traders Ltd.

TheTechnicalTraders.com

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

Early in the second week of June, Brent remains in the “black” and looks rather promising. Last weekend, investors got some good news and are now responding to it.

During the OPEC+ meeting that took place on Saturday, the cartel’s ministers agreed to expand the low oil output period for another month. It means that the oil production decline by 9.7 million bpd will continue until the end of July. During the second half of 2020, starting from August, the decline is expected to be 7.7 million bpd, while from January to and including April 2021 – 5.8 million bpd.

We remind you that the basis for the agreement wase production parameters of October 2018, excluding Saudi Arabia and Russia, whose baseline was 11 million bpd. This is the reason why the number varies for different countries.

This information is making the oil price rise. However, even with all things considered investors ignore the fact that Saudi Arabia raised prices for all buyers in July.

In the H4 chart, Brent is moving within the uptrend towards 43.43. Later, the market may correct to the downside to reach 38.70 and then form one more ascending wave with the target at 47.50. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0; it has entered the histogram and is currently growing steadily.

As we can see in the H1 chart, Brent has broken 42.00 to the upside and may test this level from above. After that, the instrument may grow with the short-term target at 43.43 and then start a new correction to reach 38.70. Later the market may form one more ascending wave inside the uptrend towards 43.00. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is rebounding from 80 and is expected to correct towards 50. After that, the line is expected to resume moving to return to 80.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com