Technical Analysis – USDCAD restrained near bottom of trading range

Posted on May 26, 2020 at 10:27 am GMT

USDCAD failed again to beat the mostly flattened simple moving averages (SMAs) and is currently headed to retest the lower boundary of the horizontal market at 1.3850. The short-term oscillators further reflect the latest downturn in price with the RSI having approached the 30 mark from the bullish section, and the stochastic lines declining from previous overbought regions into oversold territory. Moreover, the MACD – under weak directional momentum – has only just dipped below its red signal line and [..]


Week Ahead – US-China feud to stay under spotlight as data takes a backseat

Posted on May 22, 2020 at 12:04 pm GMT

Virus recovery hopes have gotten a boost after preliminary PMI readings for May rebounded more strongly than expected, underscoring the market optimism. But with economic releases set to quieten down in the coming week, Washington’s increasingly hostile language against China threatens to upset the dubious risk-on theme. Any panic-driven sell-off in risk assets could be accentuated from another anticipated plunge in personal consumption and durable goods orders in the US, which will be the main data highlights of the next [..]


Technical Analysis – GBPAUD bearish wave continues; 1.8524 eyed as oversold signals strengthen

Posted on May 22, 2020 at 11:08 am GMT

GBPAUD added new legs to the downward pattern it started in early March after piercing the 200-day simple moving average (SMA), with the developing bearish cross between the 20- and 200-day SMAs increasing the case for another extension. That said, a rebound in the price cannot be ruled out as the RSI and the Stochastics hint oversold conditions, while the MACD seems to be easing its negative momentum. Yet, to set the stage for an immediate upside reversal, the price needs to [..]


Daily Market Comment – Hong Kong leads global markets lower as tensions spike

Posted on May 22, 2020 at 9:22 am GMT

Risk aversion deepens as China announces new security laws in Hong Kong Dollar and yen edge higher, global stocks sell off on fears of US retaliation Range breakouts rejected across multiple charts – S&P 500, euro, aussie, loonie Hong Kong sparks worries of new chapter in US-China tensions Global risk appetite crumbled on Friday, after China announced plans to establish an ‘enforcement mechanism’ for ‘safeguarding national security’ in Hong Kong. The news came hot on the heels of legislation to [..]


Technical Analysis – USDCAD trendless within a sideways channel

Posted on May 22, 2020 at 7:58 am GMT

USDCAD is in a trendless state within a horizontal channel since the pullback from the 4-year high of 1.4667, confined by the 1.4218 top and the 1.3854 base. Technically, the neutral bias could stay in place in the short-term as the MACD is barely moving around its zero and signal lines, while the RSI has yet to show any sustainable recovery above the 50 level. Should the price extend its latest rebound above the 1.4011 mark, which is the 38.2% [..]


Daily Market Comment – Nasdaq charges higher, pound feels heat of negative rates

Posted on May 21, 2020 at 10:42 am GMT

Stocks defy economic gravity; Nasdaq closes in on record highs But markets more cautious Thursday, after Trump’s twitter storm vs China Pound rebound falters as BoE Governor doesn’t rule out negative rates Dollar finds its footing ahead of speeches by Fed’s top echelon Nasdaq approaches all-time high, but futures retreat Close your eyes and you wouldn’t know we are in the middle of a deep recession. At least not by looking at the Nasdaq 100 (+2%), which closed less than [..]


Daily Market Comment – Stocks trapped in ‘no man’s land’, but yen slides

Posted on May 20, 2020 at 9:15 am GMT

Equities pull back as vaccine doubts set in, still stuck in a range Yet broader FX market in a ‘risk on’ mood, yen bruised by BoJ news Bank of England speakers in focus today ahead of Fed minutes Markets look for another catalyst as vaccine rally falters The vaccine-powered euphoria that propelled stocks higher at the start of the week gave way to skepticism on Tuesday, as reports blasted the lack of data in Moderna’s vaccine study, stressing that the [..]


Daily Market Comment – Vaccine hopes power markets higher, can Powell add more fuel?

Posted on May 19, 2020 at 9:17 am GMT

Vaccine headlines, Fed stimulus bets, and EU recovery package propel stocks higher Yen, dollar, and franc suffer as euro and commodity currencies cheer Fed chief testifies before US Senate today (14:00 GMT), can he keep the ‘party’ going? Perfect storm for stocks Risk appetite returned with a vengeance to global markets on Monday, with the S&P 500 (+3.15%) having its best day in weeks amid a perfect storm of news around a virus vaccine, more Fed stimulus, and a European [..]


Technical Analysis – USDCAD in horizontal mode; dives below flat MA’s

Posted on May 19, 2020 at 5:39 am GMT

USDCAD lost ground once again within a sideways market – that begun around April 6, – falling under the directionless simple moving averages (SMAs) and the 1.4011 level, that being the 38.2% Fibonacci retracement of the up leg from 1.2951 to the 50-month peak of 1.4667. The decline towards the lower boundary of the range looks to have stalled, slowing ahead of the 1.3900 low, something also reflected in the RSI and the stochastic oscillator. The RSI is improving after [..]


Daily Market Comment – US-China tensions simmer but markets still betting on recovery

Posted on May 15, 2020 at 8:55 am GMT

Trump threatens to “cut off” relationship with China as row over virus spread escalates But market fallout limited as hopes of recovery and more stimulus prevail Dollar headed for weekly gains, eyes US retail sales data Trump continues attack on China President Trump stepped up his fierce criticism of China as he continued to blame the country for failing to stop the spread of the coronavirus. Speaking to Fox Business Network on Thursday, Trump cast doubt on future trade links [..]

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