EURUSD has surged in recent weeks on the back of US dollar weakness and on hope of Eurozone economic recovery. However, it is critical for the currency pair to continue it's upward trajectory that prices consolidate above long term resistance at 1.136.
The strong performance of equity markets in the past few weeks has impacted gold prices despite record levels of QE and rate cuts by global central banks. However, we still have a long view on the precious metal due to fears of a second coronavirus wave and that equities have recovered too quickly and could well give up some gains in the coming weeks. Both these...
Having only dropped a couple of hundred points since it formed a double top formation the Dax has surged on the back of ECB stimulus. However, we believe it is crucial that the index consolidates at key support around 12,000 in order to make a run back up towards 13,000 otherwise recent gains could be given up on the back of the current global socio economic problems.
Gold continues to rise after it consolidated back above long term support above $1560 back in March on the back of FED rate cuts and the continued uncertainty and impact on the global economy of the coronavirus. Additionally, it is the safe haven of choice for investors and we expect it to also rise further due to the renewed trade war tensions between the US and China.
We still hold our long Silver view as the precious metal continues to rise on the back of FED rate cuts and the continued uncertainty and impact on the economy of the coronavirus. We would now want to see Silver consolidate above key resistance at around 17.3 before challenging last year's highs above $19.
We have changed our view from long to short as the Dax twice failed to consolidate above key resistance towards 11300 and formed a double top. This is a bearish signal and we feel the renewed US and China trade tensions in conjunction with the continued impact of the coronavirus on the global economy would weight heavily on the index in the coming trading sessions.
Bitcoin has finally risen above resistance at around $9000 and it now edging towards the psychological $10000. This is despite the recent Bitcoin rally fading after the golden cross which saw the 50 day MA move above the 200 day MA as we believe that the cryptocurrency can be seen as a safe haven in the current market environment.
We still have a long view on USDJPY as the currency pair has not consolidated below key support at 107.6. However, we are weary that the turmoil in the oil markets could continue to spread to equities and lead to a flight to safety causing the YEN to appreciate in the near term.
We still see Bitcoin moving higher and believe it has upside potential as it can be seen as a hedge to the economic potential economic disaster caused by the coronavirus. However, in the first instance we would want the cryptocurrency to consolidate above key resistance at $7091 before the targeting the next resistance level at around $9000 and are encouraged by...
We changed our view to long as Bitcoin was crashing from $8000 to below $5500 as we felt it has long term upside potential. Bitcoin has since steadied as it has consolidated above key support at $6584 and we it moving higher with a medium term target of $10000 as it can be seen as a safe haven.
We had a short view on AUDUSD up until recently when the currency pair crashed and dropped towards 0.55. However, AUDUSD has since rebounded and we this as an opportunity to take a short view due to the worsening coronavirus situation and it's impact on the global economy. This is despite the RBA indicating in minutes earlier today that there be no additional...
We still have a neutral view on the EURUSD as despite it's upward momentum the US dollar's safe haven status could see a sharp drop in the currency pair. Therefore we will hold a neutral view until EURUSD consolidates above resistance at 1.116.
Silver has dropped dramatically over the past month from nearly $19 not below $12 and we long view which we had to abandon our long view when it fell below support at $15.5. We feel it's still too risky to take a directional view on Silver at present because despite it's status as a safe haven it's price is also impacted by industrial demand. Therefore the level...
We feel there is upside potential for USD/JPY as long as the currency pair doesn't drop below key support at 104.2. However, if the impact of the coronavirus worsens we could see USDJPY dropping rapidly and even falling below the 100 psychological level.
We still see EURUSD moving higher as long as it doesn't consolidate below key support at 1.13 as it has strong upward momentum since the FED emergency 50 bps rate cut. However, the currency pair could drop if the ECB cuts rates on Thursday and due to further downward pressure as a result of the severity of the impact of the coronavirus on Italy.
We still see AUDUSD moving lower despite the FED emergency 50 bps rate cut due to the continued impact of the coronavirus and it's impact on China. This is despite the RBA cutting 25bps in comparison such is the reliance on China and exports for the Australian economy we expect the currency pair to target 0.64 in the coming trading sessions.
We still hold a neutral view on the Dax due to the continued uncertainty surrounding the coronavirus and the potential impact on economic growth. However, with an RSI below 30 indicating the index is oversold there could be opportunities to take a long view in the coming trading sessions.
We still see USDJPY moving higher despite the currency pair failing to consolidate above key resistance at 112. We are encouraged that USDJPY has maintained strong upward momentum as the coronavirus spreads despite the Yen being viewed as a safe haven.