Daily Market Charts and Analysis June 05, 2020

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

EURAUD

After the pair recently dropped to its support in the previous sessions, bulls have taken advantage to bounce off the pair. However, as of writing, the pair is seen steadying this Friday. The exchange rate is still expected to climb back up to its resistance in the halfway point of the month. Bullish investors are looking to prevent the 50-day moving average from plummeting lower towards the 200-day moving average. Of course, investors of the euro would want to maintain their bullish stature. As for the Australian dollar, it’s currently feeling the pressure of the recession. In fact, it’s the first recession in the antipodean country’s economy for about 27 years and the government is working hard to buoy it. This suggests possible stimulus from the authorities which would hurt the strength of the Australian dollar in the coming sessions. Although the Reserve Bank of Australia recently decided to hold on to current rates, investors are waiting for further guidance.

EURUSD

The euro to US dollar exchange rate continues to advance higher this Friday ahead of the highly anticipated nonfarm payrolls in the United States. The US dollar failed to capitalize on the positive ADP private sector employment change results. Although looking at it at first, the almost 3 million job loss in the US private sector is awful, but it’s better than the projected 8 million. Investors felt a sigh of relief as it could have been more catastrophic, luckily that wasn’t the case. The pair is heading towards its resistance and it should reach it by the middle half of the month. Bullish investors of the pair seek to turn the tides into their favor and finally push the 50-day moving average higher against the 200-day moving average. The euro is advancing despite the European Central Bank’s move to add a ton more of liquidity in the system. While adding liquidity would normally by bearish for a currency, it appears that it worked well in favor of the euro.

USDJPY

The US dollar may not have been successful against other currencies, but it was able to overtake and overpower the struggling Japanese yen. The beloved Asian currency is also poised to record its fourth day of consecutive losses against the greenback. Although it’s worth noting that bullish investors are only able to acquire limited gains. It’s expected that the pair will reach its resistance soon but it will be a rough climb for the US dollar as it’s also feeling the pressure of the ongoing protests in the country which could have a significant impact on the recovery of its economy. Bullish investors aim to force the 50-day moving average significantly higher than the 200-day moving average. Meanwhile, reports say that the Bank of Japan will likely maintain its expectations for the gradual recovery of the Japanese economy in the latter half of 2020. The news heightens the chances and speculations for a bold monetary easing policy from the BOJ.

GBPCHF

Earlier this week it was reported that the Swiss economy has entered a recession in the first quarter of 2020. This marks as the first one for the beloved Central European economy in decades. The announcement has helped weaken the Swiss franc against the British pound. This raised the probability of a continuous bullish path for the pair. The British pound to Swiss franc exchange rate should climb to its resistance this month, further pushing the 50-day moving average towards the dominating 200-day moving average. Official data from Switzerland shows that the economy contracted by 2.6% during the complicated first three months of 2020 compared to the previous quarter. The Swiss economy felt the heavy toll of the lockdowns brought by the coronavirus pandemic. The international economic slump has also weighed heavily on the exports of the wealthy nation which was, fortunately, cushion by its large pharmaceutical industry.