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

Market Analysis / 2 Min Read
Desmond Leong / 13 Apr 2020

US equities pared recent losses as optimism keeps reigning in the markets that we could finally be seeing some light at the end of the tunnel with the battle against the Covid-19 outbreak. According to CNBC, Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases stated that “the start of a turnaround in the fight against the coronavirus could come after this week”. Elsewhere, the world’s top oil producers finally called a truce on the devastating price war between Saudi Arabia and Russia by agreeing to cut global petroleum output by nearly a 10th, which could provide a temporary boost to oil prices. Meanwhile, the USD slid lower while AUD and NZD benefited from the recovery in market risk appetite.


CURRENCY: USDJPY

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

Price is approaching 1st resistance at 109.41. Price is facing bearish pressure from 1st resistancet where we remain bearish below this level. The 1st resistance level happens to where the horizontal swing high lines up with 50% fib retracement. Ichimoku is showing nice resistance for the price to reverse from here.



CURRENCY: GBPUSD

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

Price is reaching our first resistance, in line with our 78.6% fibonacci extension and 61.8% fibonacci retracement where we could be seeing a reversal below this level. Stochastic is approaching resistance as well where we could be seeing a drop below this level. 

 

CURRENCY: USDCNH

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

Price is facing bullish pressure from our Ichimoku cloud and 1st support where we remain bullish above this level. Wuhan reopens and almost 90% of the companies are back to work. The recovery of China’s economy is on the road but might take longer than expected. As price is approaching 1st support, it is likely that USDCNH could bounce from there towards 1st resistance. 

 

CURRENCY: SPX

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

We caught the bounce nicely from our first support level last week. This week, price is testing our first resistance level where we could see a reversal below this level. A break below our first support level could provide a bearish acceleration to our second support level.

 

CURRENCY: XAUUSD

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

Gold generally drifted sideways this week, holding between 1st resistance at 1687.24 and 1st support at 1572.35. Watch closely, downside confirmation at 1637.50. A break below this level could see price make a drop towards 1st support at 1572.35. Stochastics is holding below resistance where price reacted in the past as well. Trading in the global markets have been generally muted as investors continue to watch how government bailouts across the world might help prop up their respective economies. Failure to do so would most definitely see gold push for new highs.

CURRENCY: WTIUSD (USOIL)

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

Over the course of this week, oil rebounded and tested a key Fibonacci retracement level at 1st resistance 29.11. Below which, a short term pull back towards 1st support at 21.69, where multiple Fibonacci confluences have been found, is expected. Given that Saudi Arabia shows no interest in cutting oil production, there is a possibility that oil could very well retest it’s historical lows of 19.25 again. RSI momentum indicator testing descending trendline resistance 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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