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 our market experts each and every week!
Catching you up on last week:
• Germany’s economy enters a recession after GDP for Q1 fell by 2.2%
• The European Commission unveiled a plan to borrow €750 billion to help EU countries hit hardest by the pandemic
• The Fed’s Beige Book revealed two-thirds of businesses surveyed are pessimistic about an economic recovery, while Initial Jobless Claims added another 2 million people — the total tally now at nearly 41 million people since the start of the pandemic
This week, keep an eye on:
• Unemployment data out of Europe, while we continue to watch U.S. Jobless Claims
• Interest Rate Decisions from the RBA earlier in the week, then the Bank of Canada, and finally the ECB on Thursday
• Friday’s jobs report, with at least 8 million jobless claims over May, is expected to post a 19% or higher unemployment rate, which would be the worst since the Great Depression
Let’s take a closer look…
Each week, we take a closer look at the markets that move, and those you may have missed!
This index has outperformed others this week, breaking above 30-day highs at 24850 — money has been rotating from tech names to reliable blue-chip companies. Above its 66 SMA, outside its upper Bollinger band, and close to a resistance area (5% wide). To the upside, keep an eye on a reaction to 25850, then 26300, and finally 2700. To the downside, a re-test of 24850, then 24180; if broken, it could test the 22900 area.
Trading close to the upper bound of the last two months, the pair has found new strength in the EU rescue package proposal. If the price stays above 1.0970, it could be a good sign, pushing the pair toward 1.1050 first, followed by 1.1115 — in this case, we may see more strength to come. To the downside, 1.0940 and 1.089 could be support levels; until falling below 1.0770, there is no need to panic, simply more range-trading.
The 1720 break on May 14th has pushed the price up to 1765 but there has not been enough daily momentum for further rising. So, after this false break out, XAU headed down and made another false break on Tuesday. Strictly monitor the 1740 and 1710 areas. To the downside, 1690 and 1670 will be support levels, even if the latter is reached, more weakness may come.
Shares jumped May 7th on an optimistic outlook, opening with a $10 gap from 129 to 139. Since then, this latter level has been a strong support; 146 and 150 being the other important ones. Only once have shares opened above 150, and then immediately dropped. Watch for more trading in this range: if the bears come out, 136 could be where the 4h trend passes, then the target would be 129 (and eventually lower to 123.50) for closing the gap.
Save The Date(s)
Here are the reports, meetings and other fundamentals to follow this week
|June 1st, 2020||13:45||Markit Manufacturing PMI||USD|
|June 2nd, 2020||04:30||RBA Interest Rate Decision||AUD|
|June 3rd, 2020||07:55||German Unemployment Change||EUR|
|June 4th, 2020||11:45||ECB Interest Rate Decision||EUR|
|June 5th, 2020||12:30||NFP, Unemployment Rate||USD|
*The above times are in GMT
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