Weekly Preview: Technical analysis on USDJPY, GBPUSD, USDCNH, XAUUSD, WTI, SPX
Safe haven currencies, including the USD and JPY, retraced from their recent high, due to a relief in the market risk sentiment. In the meantime, commodity currencies pared recent losses as the Coronavirus outbreak appeared to be more contained. Elsewhere, the sudden surge in the number of deaths and infected cases caused by the Coronavirus due to a change in the diagnosis requirements caused the three-day winning streak of SPX to come to a halt.
INSTRUMENT: USDJPY
Price is facing bearish pressure from our first resistance where we could see a drop below this level to our first support level. Stochastic is showing signs of overbought as well.
INSTRUMENT: GBPUSD
Price is facing bullish pressure from our first support where we could see a further push up to our first resistance level.
INSTRUMENT: USDCNH
Price is in the middle of our first resistance and 1st support where we could see price sideways while the market doesn’t have a direction yet. The Ichimoku cloud also shows signs of mixed direction.
INSTRUMENT: SPX
Price is facing bullish pressure from our Ichimoku cloud and our 20 EMA. We remain bullish above our first support level and could see a further push up to our first resistance level.
INSTRUMENT: XAUUSD
Price drifted higher coming close to 1st resistance at 1592. Sell on strength below resistance for price to drop towards support at 1539.83. Momentum indicator RSI is also coming close to resistance at 62.60 where price reversed below before.
INSTRUMENT: WTIUSD (USOIL)
Price is still holding between 1st support at 47.66 and 1st resistance at 54.35. Technical indicators remain mixed as well with price holding above 34 period EMA, yet RSI is currently testing resistance. Price should continue to move sideways or show very limited downside potential.
Read more market views from the AxiTrader team: https://www.axitrader.com/uk/blog/.
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