FXPRIMUS Weekly

Get our Analysts’ insights into FX, indices, and commodities

FXPRIMUS Weekly is your comprehensive technical and fundamental trading guide for the coming week! Access the latest news and in-depth technical indicator data, delivered by out market experts each and every week!

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As always, we look to the week that’s passed and its major stories and movements, as well

 

This week we updated our “Bitcoin” deposit method to Cryptocurrencies, enabling you to fund your account with more altcoins than ever before!

Catching you up on last week:

• The IMF project GDP at -3% globally in 2020, calling the “Great Lockdown” the worst recession seen since the Great Depression. They went on to add that growth in Asia is expected to stall for the first time since the 1960s.

• Gold reached a 7-year high, while oil prices continue to sink as the IEA projects demand in April to fall to levels not seen since 1995 (to the tune of 29 million barrels a day)

• Trade data from China came in higher than expected, while US indicators continue to miss forecasts;

This week, keep an eye on:

• Eurozone and German ZEW Sentiment, as well as CPI data from the UK and Japan

• Tech earnings start to roll in, with the likes of Netflix, Verizon, and IBM reporting

Stay ahead of stories as they happen — follow our COVID-19 Market News page.

Let’s take a closer look…

Each week, we take a closer look at the markets that move, and those you may have missed!

EURGBP

GBP has been showing strength since late March, both against USD and EUR. Paired against the euro, its price has come down from the 0.95 area to 0.8730, where it is trading now. In this 1h chart, however, you can see how the downward movement looks to be slowing down — the steepest trendline being broken on April 14th while RSI is showing the first signs of divergence and the price is supporting over the 66SMA. We could start to be optimistic above 0.8750, with targets at 0.88 and 0.885. In the event of momentum building, we could see 0.905. The support area where this would be invalid is around 0.8620.

JP MORGAN

Earnings season kicked off with big banks, showing great trading results (volatility in bonds has helped) but substantial loan-loss provisions made for borrowers. This daily chart helps put the price into perspective: the green trend you see is a long-term one, broken at the beginning of March. The price has rebounded from lows in the 80 area up to 100, and now back to 90. These maybe be the range levels to monitor for now. To the upside, we may even see the test of the 105/110 area, where both the long-term trend and 66SMA could be met and gaps closed; this area could be a strong resistance level, but it’s wise to be cautious about the possible upside.

GOLD

As mentioned before, gold is at a 7-year high, with ample liquidity injected by Central Banks being favourable. On this weekly chart, however, we can see the current trend, since late 2018, has accelerated a lot and the price is not far away from the historic resistance level at the 1785/ 1800 area. We could conceive a long-term channel, and the price is close to the higher bound. The RSI is showing the first signs of divergence and this is even clearer on a daily basis.

DJ30

The index has recovered about half of its YTD drop, facing an important Fibonacci level now. In this 4h chart, we can see the uptrend started on March 23rd is still unbroken, while the MACD is approaching the 0-level and the RSI is showing some divergence. Technically, it doesn’t look that bad; it is the macro picture that is weaker. If the rising trend is not broken soon, we could test 25200-25900. To the downside, 23150, 22600, 21800 then 21,000.

Save The Date(s)

Here are the reports, meetings and other fundamentals to follow this week

April 20th 01:30 PBoC Interesy Rate Decision CNY
April 21st 09:00 EU and German ZEW Sentiment EUR
April 22nd 14:30 EIA Crude Oil Stocks Change OIL
April 23rd 08:00 EU Markit PMI EUR
April 24th 12:30 US Durable Goods Orders (Mar) USD

 

*The above times are in GMT

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