Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair is trading within a downward channel, with a pretty solid support at 121.000 levels and some resistance around 122.322, a break above which could potentially trigger a rally. The 50- and 200-day moving averages are still indicating downward trajectories. The euro was broadly stronger against peers, particularly against the US dollar. The euro continues its rally from last week after the European Central Bank increasingly opted to ease monetary policy. Against the Japanese yen, the euro still manages to perform strongly, recuperating some losses from recent weeks, although of course the Japanese currency still stands firm on its safe-haven appeal for investors in markets bogged down by a series of trade tensions and geopolitical conflicts on the European side. Overall, the movement remains in favor of the Euro, which continues to gain more grounds against other currencies.
The pair is seen going lower on the charts, with the US dollar weakening against the Canadian dollar, a commodity currency. Candlesticks drift farther away from the 200-day moving average line, which still indicates a modest rise in the longer term for the dollar. The recovery in the Canadian dollar, meanwhile, was largely attributed to the increase in West Texas Intermediate oil prices. Crude sees large demand ahead of the new US sanctions against Iran. Last Saturday, US President Donald Trump tweeted that Iran “cannot have Nuclear Weapons! Under the terrible Obama plan, they would have been on their way to Nuclear in a short number of years, and existing verification is not acceptable.” The worsening tensions between the US and Iran underpinned crude prices, after Iran shot down a US spy drone, to which the US threatened to call a military strike.
The pair is creeping up the charts as the New Zealand dollar continues to gather more strength against the buck. Prices have come at and past the 50-day moving average, indicating a cap on the upward strength of the pair. For the NZD side, the Reserve Bank of New Zealand’s decision on interest rate remains the focus of the week. After lowering the rate to 1.50% last May, NZ’s central bank would probably put any moves on hold this month. Domestic economic developments came in largely in line with the policymakers’ projections. The first quarter GDP growth topped the central bank’s expectations, though the breakdowns were mixed. Forward-looking indicators hinted at growth risks, which are skewed to the downside. Meanwhile, the global economic outlook remains uncertain, with major central banks switching to the dovish side. It’s also very improbable that the US-China trade war will be resolved at the G20 summit.
The AUDJPY pair showed the biggest move among the non-dollar pair, presenting as much as 4% gain on the day. The gain was posted ahead of the European markets open, with buoyant stock markets in Asia. The AUDJPY cross is widely seen as the barometer of risk appetite in global markets. The aforementioned US-Iran and the speculations about the likelihood of a resolution to the US-China trade tensions are seen to be dampening the optimism given by the dovish stances given by major central banks. The AUDJPY pair is seen to be reverting back to a downward trajectory if US-China trade tensions don’t get a hint of resolution and the US-Iran political tensions continue to worsen. Although a recent return to dialogue is welcomed with the US-China trade war, concerns still loom large about a potential for a breakthrough after Beijing indicated that American company FedEx could be added to its national security “entity list”.