Daily Market Charts and Analysis April 06, 2020

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Market Charts and Analysis

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

USDHUF

The Hungarian forint reached its weakest levels against the US dollar just last week, prompting bears to force a slight rebound this Monday. The USDHUF pair remains widely bullish as the 50-day MA is seen trading significantly above the 200-day MA. Apparently, the weakness of the Hungarian forint can be traced from the deteriorating economic activity of eurozone, the biggest trading partner of Hungary. The bloc’s service sector PMI just collapsed to just 26.4% according to recent results, hitting the Hungarian forint’s strength. Technically, considering that it’s still the initial impact of the pandemic, things could get rougher for the eurozone and the Hungarian forint, thus leaving room for USDHUF bulls to push the pair towards its key resistance line by the half-way mark of the month. Unfortunately, aside from those, the Hungarian gross domestic product is forecasted to plunge by an alarming 20% in the second quarter of the fiscal year.

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USDMXN

The Mexican peso is on the verge to reach record lows against the US dollar as oil prices remain volatile. Aside from its high susceptibility to crude prices, MXN investors are also eyeing on the decisions made by the Mexican government to combat the impact of the pandemic. The country’s president, Andres Manuel Lopez Obrador, just recently vowed yesterday to roll out more stimulus measures to buoy the economy. However, bears weren’t really pleased as the Mexican president warms more borrowing as his plan would be “unorthodox”. Meanwhile, as the number of COVID-19 deaths continues to surge, the US dollar remains on the offensive. Aside from that, the crash of the non-farm payroll last Friday reinforced the buck’s demand and appeal in the market, erasing the recovery made by the Mexican peso in the previous sessions. The alarming plunge of the NFP gives a glimpse of the current state of the US economy, which is obviously not doing good.

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USDNOK

After the pair surged to record highs in the previous sessions, it collapsed as bears finally resist. It’s believed that the pair will eventually fall lower and hit its support levels as bulls struggle to prop up the USDNOK pair once again. Looking at the chart, it appears that bulls still have control as the 50-day moving average continues to advance against the 200-day moving average. Meanwhile, the Norwegian krone is gathering reinforcement from the better than expected results of the recent unemployment rate report from Norway. The Norwegian Labor and Welfare released last Friday the unemployment rate, showing a jump from 2.30% to about 10.70%. However, despite the jump, it came in way better than the projected 13.50% increase prior, cushioning its impact to the Norwegian kroner. Last Friday’s Norwegian unemployment count also came in on the same day as the US non-farm payroll that showed massive contraction.

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USDPLN

The Polish zloty started the month on a rather sour note against the US dollar following the contraction recorded in the Polish manufacturing PMI reported on April 1st. However, as of today, bears have finally pressed their gas pedals and are exerting effort to force the pair downwards again. It’s believed that the Polish zloty will slightly recover some of its major losses against the US dollar and touch down to its key support levels in the coming days. Official data from Poland shows that the country’s manufacturing PMI dropped further into contraction from 48.20% to 42.40% in March, falling lower than the expected 45.20% prior. Looking at the chart, the USDPLN pair is still technically trading on a bullish momentum as the 200-day moving average gets left behind by the 50-day moving average in the trading sessions. Meaning to say that there is a possibility that the pair would only bounce off its support levels once it hits it.

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