Home / Blog / Market Analysis / Weekly Preview: Technical analysis on USDJPY, GBPUSD, USDCNH, XAUUSD, WTI, SPX 20200316

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

Market Analysis /
Desmond Leong / 16 Mar 2020

Risk aversion flooded the market as the Covid-19 outbreak is officially a pandemic. As the global stock market and commodity currencies skydived for the second week, demand for safe haven currencies such as the USD and JPY surged as investors fled to them for shelter. Gold, on the other hand, tumbled lower despite the strong risk aversion, much to the market’s surprise. Meanwhile, oil prices dived as a result of the waging price war between Russia and Saudi Arabia, with the latter slashing export oil prices while increasing supply, causing oil prices to slide below $30USD per barrel. Elsewhere, market remains focused on the developments of the Covid-19 outbreak, with the FED widely expected to cut interest rates by 100bps in its upcoming meeting. 

 

CURRENCY: USDJPY

Price is facing bearish pressure from our first resistance where we could see a drop below this level to our first support level. Ichimoku is also showing signs of overbought as well. 

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



CURRENCY: GBPUSD

Price is facing bullish pressure from our first support where we could see a further push up to our first resistance level. Stochastics is also showing signs of bullish pressure and seeing a bullish divergence as well.

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

 

CURRENCY: USDCNH

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

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

 

CURRENCY: SPX

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.

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

CURRENCY: XAUUSD

Gold made a new low this week as investors dumped gold to free up further liquidity to meet the margin requirements over in the equity markets. Currently gold is testing resistance at 1587.52 below which it seems that a short term drop to the support at 1549 is possible yet again. Further, technical indicators show that price is holding below moving average and MACD indicator is within the bearish zone.

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



CURRENCY: WTIUSD (USOIL)

Oil prices gapped lower as Saudi Arabia increased the oil supply to bring down the prices in a retaliation against Russia for refusing to accede to OPEC’s request to cut their oil supply. The oil price war over this week caused oil prices to drop below US$30 per barrel (a price not seen since 2016). Price is currently testing short term ascending trendline support and holding above support at 30.01, where a short term bounce towards resistance at 41.03 is possible. Stochastics is testing support as well where price reacted in the past.

WTIUSD (USOIL) Chart, Source: TradingView.com
WTIUSD (USOIL) Chart, Source: TradingView.com

 

 

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.

More on this topic

See More News

Open your account. Trade within minutes.

Start your trading journey with a trusted, multi-award winning broker.

Open Account Try a Free Demo