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Weekly Preview: Technical analysis on USDJPY, GBPUSD, USDCNH, XAUUSD, WTI, SPX

Market Analysis /
Desmond Leong / 09 Mar 2020

This week, there was no clear direction as to where the market is heading with the equities market rallying 4.5% up in a day and 2% down in another. It seems like the unwinding of carry trades remained a main theme in the forex market as we saw the EUR, JPY and CHF edged higher. Elsewhere, USD and CAD tumbled lower as the FED and BoC delivered a 50bps rate cut this week, much to the market’s surprise. Looking ahead, investors will be keeping a close watch on ECB’s interest rate decision and Eurozone’s GDP data where missing estimates or signals of a rate cut; following in the 3 central banks’ footsteps this week (RBA, FED, BOC) could see the EUR pare recent gains. Given the current global outlook with the Covid-19 outbreak showing no signs of slowing down worldwide, positive surprises in economic data could have a minimal impact on the currencies and the market risk sentiment.

 

CURRENCY: USDJPY

USDJPY Chart, Source: TradingView.com
USDJPY Chart, Source: TradingView.com

Price is facing bullish pressure from our first support where we could see a bounce above this level to our first resistance level. Stochastic is showing signs of oversold as well. 

CURRENCY: GBPUSD

GBPUSD Chart, Source: TradingView.com
GBPUSD Chart, Source: TradingView.com

Price is facing bullish pressure from our first support where we could see a further push up to our first resistance level. Ichimoku cloud and Stochastics is also showing signs of bullish pressure as well, in line with our bullish bias. 

CURRENCY: USDCNH

USDCNH Chart, Source: TradingView.com
USDCNH Chart, Source: TradingView.com

Price is facing bearish pressure from our Ichimoku cloud and our first resistance level where we could see a further drop to our first support  level.

CURRENCY: SPX

SPX Chart, Source: TradingView.com
SPX Chart, Source: TradingView.com

Price is facing bearish pressure from our Ichimoku cloud and our first resistance level where we could see a further drop to our first support  level.

 

CURRENCY: XAUUSD

XAUUSD Chart, Source: TradingView.com
XAUUSD Chart, Source: TradingView.com

Gold pushed higher on growing fears surrounding the Covid19 global epidemic. Price currently  coming close to recent swing high at 1st resistance 1689.30, below which a short term pull back towards support at 1652.45 could be expected. Stochastics testing resistance as well. If the bullish momentum is too strong, we could possibly see price break above the graphical swing high and make for a push towards 2nd resistance.

CURRENCY: WTIUSD (USOIL)

SPX Chart, Source: TradingView.com
SPX Chart, Source: TradingView.com

WTI drifted lower over the course of the week. Now, price is coming close to support at the 44.29 price level. A short term relief bounce above this level towards resistance at 48.52 could be a possibility. Technical indicator stochastics is currently testing support level as well. Breaking below 1st support should see the price of WTI drop towards 2nd support at 42.40 which is also December 2018’s low.

 

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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