EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
USD/CNY is driven by trade uncertainty
Information is not investment advice
USD/CNY retraced 78.6% of the 2018-2019 decline. The US dollar strengthened versus the Chinese yuan as the trade deal between the United States and China met unexpected obstacles.
To put it briefly, America increased tariffs on Chinese imports and China decided to retaliate. In addition, China’s industrial production figures and retail sales for April turned out to be worse than expected. This might mean that Beijing may need to roll out more stimulus measures to support its economy. Comments of the US President Donald Trump that trade talks hadn’t collapsed improved the sentiment a bit, but the uncertainty remains. That means that the USD has more bullish potential versus the CNY.
The outlook for USD/CNY will remain bullish as long as it stays above 6.8250 (200-day MA, weekly pivot). On H4, the pair is consolidating within a symmetric triangle. The direction of a break will determine whether the move to the upside continues straight away or we see a correction.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
USD/JPY has been rising for almost a week except for Monday, but the strong resistance of the 50-day moving average at 105.80 may stop it from moving higher.
BoA released the report with the bullish forecast for the S&P 500 and shared its technical analysis. Let's discuss it in detail.
EUR/USD has violated the first resistance trendline area 1.1680