Home / Blog / Market Analysis / Weekly Preview: Technical analysis on USDJPY, GBPUSD, USDCNH, XAUUSD, WTI, SPX 20200427

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

Market Analysis / 3 Min Read
Desmond Leong / 27 Apr 2020

We could be seeing a new wave of risk aversion as traders digest the absolutely catastrophic global flash PMIs across Europe and US, with the US unemployment claims surpassing the 4 million mark. Meanwhile, the EU's disagreement on how to fund its long term recovery plan of the Covid-19 situation, along with the failure of the first trial of the Covid-19 cure led by the Gilead Sciences could suppress market’s risk sentiment further. 

CURRENCY: USDJPY

Price is approaching 1st support at 106.96. 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 lines up with 61.8% fib extension. Ichimoku is showing a push down towards 1st support is likely before a possible bounce.

CURRENCY: GBPUSD

Chart by TradingView.com

Price is approaching our first support, in line with our horizontal swing low support, 1.618 fibonacci extension, 38.2% fibonacci retracement where we could see a further bounce above this level to our first resistance level. Stochastic is approaching our first support as well.

CURRENCY: USDCNH

Chart by TradingView.com

Price is facing bullish pressure as it bounced off 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

Chart by TradingView.com

Price is testing our first resistance level in line with our 61.8% fibonacci retracement and horizontal overlap resistance, 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

Chart by TradingView.com

Gold drifted sideways this week, holding between 1st resistance at 1747 and 1st support at 1674. However now price is closer to 1st resistance and stochastics indicator is testing resistance as well where price reacted below in the past. A short term drop below 1st resistance towards 1st support can be expected for Gold.

CURRENCY: WTIUSD (USOIL)

Chart by TradingView.com

As expected, oil broke below previous supports and made the headlines as May futures went into the negative price region a day before settlement. However we see from the chart that as prices rolled over into the June contract, price spiked up and almost immediately dipped lower as well. Currently the fundamental view for oil hasn’t changed. Technically, oil is still holding below a descending trendline resistance with price right at a key Fibonacci retracement level. A drop below 1st resistance towards 1st support should be expected. 

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