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

Market Analysis / 2 Min Read
Desmond Leong / 29 Jun 2020

This week, equities edged lower while safe haven assets such as Gold and US dollar strengthened as the rising number of Covid-19 cases in US, Latin America and India dented hopes of a swift economic recovery. Adding on to the risk off market sentiment was IMF slashing its growth forecast, citing that the pandemic brought about a wider and deeper economic damage than expected. Elsewhere, Oil prices edged lower as we witness risk aversion flooding back into the markets once again. 


Chart by TradingView.com

Price sideways and trade in the middle of 1st support and 1st resistance.The 1st support level happens to be where the 61.8% fib extension is. Take caution that EMA shows that price is breaking above the EMA(34) and it could open more upside if it closed above EMA(34). 


Chart by TradingView.com

Price is facing bearish pressure from our resistance level, in line with our trend line, horizontal overlap resistance and 38.2% fibonacci retracement where we could see a drop to our first support level. The 20 period EMA is also showing signs of bearish pressure in line with our bearish bias.  


Chart by TradingView.com

Price is approaching 1st support which is in line with our horizontal swing low. Stochastic is showing signs of bullish sentiment. Take caution that the Ichimoku cloud is showing signs of bearish pressure for prices to make a pushdown.


Chart by TradingView.com

Price bounced nicely from our first support previously before paring recent gains this week. Looking ahead, we maintain a neutral view as price trades between our first support level, in line with our 78.6% fibonacci extension, horizontal pullback support and 61.8% fibonacci retracement and our first resistance level, in line with our horizontal overlap resistance and 100% fibonacci extension. 


Chart by TradingView.com

Gold price reversed below 100% Key Fibonacci extension level. A further push down below 1st resistance at 1766.35 towards 1st support at 1742.20 is highly possible as momentum indicator, RSI, also seems to be reversing off resistance as well.


Chart by TradingView.com

Oil price showed a limited bounce at the start of the Asian trading session. With price coming close to key 61.8% Fibonacci retracement level, a short term drop below 1st resistance at 39.84 towards 1st support at 37.09 could be highly likely. RSI coming close to testing resistance as well where price reversed off in the past.

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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