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!
With a new week comes new market opportunities. Here’s a recap of what you may have missed, as well as some highlights of the week ahead of us:
Catching you up on last week:
• Zoom Communications posted first-quarter earnings, reporting a 169% increase in revenue from the same period the previous year and doubled their yearly forecast.
•The ECB announced another €600 billion in coronavirus stimulus, bringing Europe’s bond-buying programme total to €1.35 trillion.
• We’re starting to see a slowdown after just under 1.9 million new Jobless Claims were reported Thursday, while in Friday’s NFP, we saw a job loss of 2.5 million compared to 8 million expected. The unemployment rate has dropped to 13.3% from a forecast of 20%.
This week, keep an eye on:
• Eurozone QoQ GDP is up early on in the week, where growth of -3.8% is expected
• Crude oil inventories in Cushing, OK — storage levels are significant because it is the delivery point for WTI.
• Significant US data spread throughout the week, including the Fed’s rate decision and the FOMC’s Economic Projections and Statement
Let’s take a closer look…
Each week, we take a closer look at the markets that move, and those you may have missed!
STOXX50 is trading close to its 61.8% FIB and well above a still-descending 66 EMA. The 3260-3360 area is a resistance and the price appears to have been moved into a channel. RSI is slightly overbought. To the downside, 3185, 3130 and 3100 (where an eventual fall could stop); 2900 is an even more ambitious target. To the upside, we see potential capped around 3360-3430.
Euro has been strong, while the risk-on rally has contributed to the weakness in the Yen. The pair broke the 1-year downtrend (red) at 120.60 last Tuesday and tested a longer one (originated in 2017) at 122.65. RSI is overbought, and MACD is still positive. It’s possible that we will see consolidation between the two indicated levels. Remember that a strong trend takes time to weaken. In the case of a break to the upside, 123.40 is the next level to watch; to the downside, 119.70 could be a support.
Silver has been outperforming Gold lately, breaking well above its April highs. It got close to testing a downtrend that originated in August 2019 at 18.25; previously, it easily passed the 16.50 resistance area and went parabolic. To the downside, 17.40 then 16.75 that could be a solid support; more weakness could bring it close to 16.10. To the upside, 18.15 with 18.40 being a difficult hurdle: in the bullish case, we could assist to an overshoot up to 18.80.
The investment bank’s shares are moving within a very healthy uptrend but it’s starting to get closer to the upper bound of the channel (48.50). Besides the resistance zone in pink, 49.10 and 52.60 are possible downtrend hypotheses. To the upside, 48.45, 49.15; to the downside, 46.40, 45.80, 44.40 and 43.80 where the price could find support. More weakness would bring us to the 41.40 and even 40 areas.
Save The Date(s)
Here are the reports, meetings and other fundamentals to follow this week
|June 9th||09:00||GDP QoQ||EUR|
|June 9th||14:00||JOLTs Job Openings||USD|
|June 10th||14:30||Cushing Crude Oil Inventories||USD|
|June 10th||18:00||Fed Interest Rate Decision||USD|
|June 12th||06:00||Manufacturing Production||GBP|
*The above times are in GMT
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