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

Market Analysis / 2 Min Read
Desmond Leong / 06 Apr 2020

This week, oil prices soared more than 25% after President Trump raised expectations of potential production cuts by Russia and Saudi Arabia. Elsewhere, Sterling and USD held its bullish momentum while EUR tumbled lower. Meanwhile, JPY climbed higher, in line with the rally in Gold as risk sentiment remains depressed. Looking ahead, we expect the developments of the Covid-19 outbreak to remain a key driver in the market. 

CURRENCY: USDJPY

Chart by TradingView.com

Price is bouncing from 1st support at 106.509 . Price is facing bullish pressure from 1st support where we remain bullish above this level. The 1st support level happens to where the horizontal swing low support is. Ichimoku is showing nice support for the price to go higher from here.

CURRENCY: GBPUSD

Chart by TradingView.com

We caught the reversal perfectly from our first resistance level and remain bearish below our first resistance where we could be seeing a further drop to our first support level. Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias. RSI is showing a bearish breakout as well. 

CURRENCY: USDCNH

Chart by TradingView.com

Price is facing bullish pressure from our Ichimoku cloud and 1st support where we remain bullish above this level. The Caixin/Markit manufacturing Purchasing Managers Index for March printed 50.1 following official PMI printing 52 in March from 35.7 in February. But with death tolls rising in the U.S. and the rest of the world, it is too early to say that the recovery have enough supply base. As price is approaching 1st support, it is likely that USDCNH could bounce from there towards 1st resistance. 

CURRENCY: SPX

Chart by TradingView.com

We caught the bounce nicely above our first support level last week. This week, we remain bullish above our first support level and could be seeing a further push up to our first resistance level.

CURRENCY: XAUUSD

Chart by TradingView.com

Gold generally drifted sideways this week, holding between 1st resistance at 1649.20 and 1st support at 1546.30. However towards the end of this week, gold drifted higher, coming close to 1st resistance which is also in line with a key Fibo retracement level. A short term drop towards 1st support could be possible in the coming week. Stochastics is holding below resistance where price reacted in the past as well.

CURRENCY: WTIUSD (USOIL)

Chart by TradingView.com

Oil this week tested previous lows and did a strong push on Thursday night over rumours of Saudi Arabia and Russia cutting back 10 million barrels of oil per day. Price now testing 1st resistance at 24.90 and a drop towards 1st support at 20.04 seems possible. Stochastics reacting below resistance where price reversed in the past before as well.

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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