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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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:

•  The UK has overtaken Italy with the highest death toll in Europe; second-highest globally. Follow our COVID-19 Market News page for the stories you need to know

•   Lyft and Roku were among the many companies to post earnings; both saw double-digit moves in either direction. PayPal hit an all-time high, and Disney reported a $1.4 billion drop in revenue

•   U.S. jobs data showed 20.5 million jobs cut in April and an unemployment rate of 14.7%

This week, keep an eye on:

•  The countdown is on to Bitcoin halving on Monday night. Learn more here.

•  UK GDP data on Wednesday, U.S. Retail Sales Friday and some major aussie and kiwi news sprinkled in between

•  Earnings start to wind down with most companies’ financials already published; Cisco Systems is expected to post theirs after Wednesday’s market close

Let’s take a closer look…

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

USDMXN

After a sharp devaluation at the beginning of the year, the cross entered a triangle and has been trading inside it for more than one month. Between Thursday-Friday, it looks like MXN is trying to break to the downside (4h chart). If this is confirmed, look to further downside pressure with the first target at 23.35 then down to 22.85. If this level is breached, there is room to reach 21.40. Pay attention to a possible rebound and false break that will take the price to 24.70.

Berkshire Hathaway

The company sold its airline holdings, found difficulty in spotting new opportunities in the market and is sitting on a record $136 billion in cash. These are all reflected in the price action (on the 1D chart), with shares trading not far from the year’s lows, and in a clear downtrend. Watch for $172; if broken, the next immediate target would be $167. RSI is below 50 (a sign of weakness) and MACD is negative as well; volatility is expanding and the lower Bollinger bands are 3.5% lower than the price.

GOLD

After having rallied close to a multi-year high on the back of the continuous monetary stimulus and uncertainty, its price action has been stuck inside a wedge/triangle (1h chart). It’s not out of it yet but it looks like time is running out. Over upcoming sessions, trading should take place between 1720 and 1690. An eventual break to the downside would mean a target of 1670, then 1640, without compromising the overall uptrend.

NIKKEI225

Like most indices, the Nikkei has rebounded from 30-day lows but less than its US counterparts: it’s now struggling around the 50% Fibonacci retracement (1D chart). Most notably, the price has not been able to pierce the 66EMA yet and it looks like the action is losing steam, also having lost the steepest uptrend from early March. Watch carefully how it starts trading Monday: above 20.500 will be a strong signal, with the first target around 21.600; the possibility that this week’s upper move will prove to be a retest of the lost trend is real. To the downside, monitor 19.000, then 18.550 and finally 17.600.

Save The Date(s)

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

May 12, 2020 12:30 US Core Inflation Rate USD
May 13, 2020 02:00 NZ Interest Rate Decision NZD
May 13, 2020 06:00 UK GDP (YoY) GBP
May 14, 2020 01:30 AU Employment Change AUD
May 15, 2020 12:30 US Retail Sales USD

 

*The above times are in GMT

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