2020-06-29 • Updated
Does the pair still have the potential to the upside?
The British pound has been the worst performing major currency amid the coronavirus pandemic. The main reason is that investors have started to increasingly correlate it with risk. That’s why, fears of the second virus wave pushed it down. The global amount of coronavirus cases has exceeded 10 million this weekend. Investors are concerning about the potential virus resurgence in Leicester.
Moreover, Brexit negotiations weigh additional pressure on the pound. The overall situation over the Brexit deal is uncertain as it hasn’t been any breakthrough yet in the EU-UK talks. The British economic recovery is slower in comparison with European countries. Also, the Bank of England cut the quantitative program too early, that had a negative impact on the GBP. However, the central bank pledged to increase it, if needed. So, it’s just a matter of time.
Unlike the GBP, the euro is more attractive for investors. It has even outperformed the US dollar. The Eurozone has the best coronavirus outlook. Since the whole market sentiment is driven by the COVID-19 developments, EUR has gained. Moreover, investors are optimistic about the European Central Bank recovery fund. If the German chancellor Angela Merkel and the French president Emmanuel Macron make a progress in this deal, EUR may rise. We’ll know on July 17-18 at the EU summit.
The EUR/USD is approaching the 61.8% Fibonacci retracement level at 0.9200. If it breaks it through, it will surge further to the next resistance at 0.9340. Support levels are at 50% and 38.2% Fibo levels – at 0.9100 and 0.9000, relatively. Some analysts consider that it’s overbought, but others still have bullish prospects.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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