Technical Analysis

Tuesday brought with it an anti-dollar mood, and the greenback suffered against other major currencies. The EURUSD pair was up 0.6%, while the GBPUSD pair advanced 140 pips, or 1.4%, during the London session.

The SP500 index was 0.3% higher during the London session on Monday and was seen trading near 2,970 USD, where the key resistance zone is located. 

The GBPJPY failed to post a bullish break through a strong resistance and was brought lower by the worsening sentiment. 

The latest rally brought the EURUSD pair to the 1.10 threshold, but bulls failed to breach this critical resistance again, and the euro was down 0.3% on Thursday, trading at around 1.0950.

The French CAC index dropped on Tuesday and erased nearly half of the big Monday's rally. On Wednesday, it was trying to push higher again and was seen half a percent stronger during the EU session.

The US dollar has come under severe selling pressure on Monday as the Fed reiterated its ultra dovish stance, and the AUDUSD pair rose nearly 2% on Monday.

The EURRUB cross has been falling slowly over the previous days, despite the poor coronavirus situation in Russia.

The SP500 index was down for three days yesterday, but late-day ramp pushed the index into positive territory. Thursday's candle now looks like some reversal bar. On Friday morning, equities were consolidating, and the SP500 index was flattish, with only minimal volatility during the Asian session.

As sentiment worsened over the previous days, the Yen strengthened broadly and the EURJPY cross dropped 150 pips from this week's highs. On Thursday, it was down 0.3% during the London session, trading at around 115.50.

The price of silver has been moving sideways after the early May's rally, and it looks like silver is consolidating before another leg higher.

EU indices were trading slightly lower on Tuesday, but the German DAX managed to stay above the short-term bullish trend line, thus defending the uptrend so far. During the EU session, the DAX was half a percent weaker, trading at around 10,830 EUR.

The SP500 index erased the overnight losses and was trading half a percent weaker during the EU session, last seen at around 2,925 USD.

The precious metal declined over the previous days as the US dollar strengthened (for whatever reason), and the bullion was trading at around 1,686 USD on Thursday morning. 

The EURAUD cross has been volatile in May so far, and the initial rally was nearly wholly erased. On Wednesday, the EURAUD cross was seen somewhat lower at the time of writing, changing hands at around 1.6810.

The greenback dipped against the yen but managed to strengthen against the Euro over the previous days. On Tuesday, the USDJPY pair was trading somewhat lower on the day, hovering at around 106.70.

The SP500 index opened with a bearish gap on late Sunday, but it managed to rally since then, and the index entirely erased the gap, only to turn lower again shortly after. 

The EURUSD pair rose notably on Thursday and it was seen consolidating on Friday, with the euro trading at around 1.0960 against the US dollar.

Wednesday was a very, very bullish day for the Nasdaq index, and technological stocks rallied 5% after Gilead Science said the Remdesivir drug is looking promising.

The euro continues to decline against the yen and on Wednesday, the price dropped to last week's lows of 115.50 as the Japanese yen strengthened notably against the greenback. 

As the US dollar suddenly surged (for whatever reason), precious metals took a beating on Tuesday, and both gold and silver were trading lower during the London session.

The greenback came under pressure on Monday, and it was trading broadly lower, with the USDJPY pair losing 0.3% during the London session, changing hands at around 107.20.

The GBPJPY cross has been consolidating recently, but Friday's sell-off might push it below the short-term uptrend line, which could mean the bearish trend is about to resume.

Cries were heard in every corner of the globe as the news of the WTI crude oil futures crash spread. Now that we’ve managed to digest this unprecedented event, traders have to get back into action and make their next move but trading on oil is extremely risky in the face of extraordinary volatility.

Sterling decline over the previous days, although losses were not dramatic. On Tuesday, the GBPUSD pair was trading 0.3% weaker, changing hands at around 1.24.

The bullion posted fresh seven-year highs a couple of days ago, but since then, it has been slowly drifting lower as traders took some profits from the recent strong rally. On Monday, the precious metal was trading half a percent weaker, hovering at around 1,675 USD.

Another day, another bullish run. US equities are ignoring all the worrying economic and fundamental data and are soaring each day. On Friday, the SP500 index was trading more than 1% higher during the Frankfurt session, hovering at around 2,865 USD.

The Footsie index was trading half a percent higher on Thursday, underperforming under EU/US indices, and it seems to be lacking upside momentum.
 

Oil is down another 2% on Wednesday, and the WTI benchmark is trading at around the essential 20 USD level.

As the Fed has been printing massive amounts of money into the financial markets, precious metals (and stocks) rallied strongly. It looks like the bottoms are in and a sharp inflationary environment is about to hit the world. 

As we noted during the previous week, the German index DAX was consolidating in a narrow range and it looked like a bullish breakout was imminent. This really occurred and the DAX index soared another 500 points after the breakout.

The SP500 index declined on Tuesday, and it was a sharp drop from daily highs as the index cratered some 4% to post a strong daily bearish pin bar. 

Gold and silver are soaring; US equities are roaring higher two or three times more as it looks like there won't be a recession, and the US economy will return to growth in the second half of the year. Perfect, as if nothing happened.

Silver took a pause in its strong rally and consolidated for many days, but this phase looks to be over, and the metal is heading higher again. 

The early morning pressure on the DAX index eased quickly and it accelerated higher during the London session, having erased nearly the whole daily loss. It was trading at around 9,550 EUR at the last check.

The GBPUSD pair rose ten big figures from its March lows and has been trading at around 1.24 for a couple of days now. 

It was the fastest bear market in history. Then, it was the quickest bull market in history. What happens now?

The greenback continues to strengthen again and the EURUSD pair was down 0.5% on Tuesday, testing the psychological level of 1.10 to the downside. 

Last week's silver rally was impressive, and the metal rose circa 15%. However, this still looks like a bear market corrective rally, and the long-term trend points to further possible downside pressure.

It has been a very bullish week for the German DAX index as the German regulator Bafin banned short-selling. DAX is now 20% higher on the week and is trying to break above the critical psychological level of 10,000 EUR.

The USDJPY pair has been moving sideways over the previous days and consolidated after the sizeable bullish move earlier in March.

Tuesday was one of the best days for equities in the history of the stock market, and US benchmarks rose +-10%, erasing three days of losses. On Wednesday, the index was 2% higher during the London session, trying to settle above the 2,500 USD threshold.

It seems like the worst could be over for now. The WTI oil was trading another 4% higher on Tuesday, following a healthy gain on Monday, and the benchmark was seen at around 25.00 USD during the London session.

The Fed has just announced an unlimited quantitative easing program, + the central bank will now be able to buy corporate, muni, and agency debt (for the first time).

The GBPUSD pair rocketed higher on Friday and was seen more than 3% higher during the London session, trading at around 1.1850. These massive movements are becoming a new normal as volatility continues to be extremely elevated, and the whole is buying the US dollars everywhere.

The German index is down 40% from its all-time highs reached just three weeks ago, and it continues to decline as the coronavirus situation is getting worse instead of better.

Gold used to be a safe-haven asset. Not during this crisis. The initial spike higher was quickly erased as investors are selling everything due to a shortage of US dollar liquidity, and cash is king, as during any crisis.

As the economic depression is nearing, industrial commodities, such as oil or silver, are cratering nearly every day. Silver is down 35% from its highs reached three weeks ago. On Wednesday, it was trading 2.5% weaker as well, hovering at around 12.30 USD.

The benchmark US index is in a bearish trend (defined as a 20% drop from the recent cycle highs) and is trying to defend the critical bullish trend line from 2009 lows.

As the demand for the US dollar soars, the GBPUSD pair is moving down, really sharply. The GBPUSD pair is down nearly 8% from its March highs reached ten days ago. On Tuesday, sterling was another 0.5% weaker during the London session, trading at around 1.22.

It was another brutal day for equities, and the FTSE 100 index declined 10% during the London session as investors sold stocks despite the Fed cutting rates to 0% and launching a massive QE program.

Many people claimed that cryptocurrencies would be the new safe-haven asset. As we can see, they could not be farther from the truth. 

German stocks are cratering again on Thursday, and the index is down 5% during the EU session, trading at around 9,840 EUR, which are levels last seen in the summer of 2016. 

The British pound was trading in green during the early London session, having erased today's losses, and the GBPUSD pair was up 0.35%, changing hands at around 1.2950 at the time of writing.

Equities reversed their direction on Tuesday and rocketed higher, with EU indices up 7%, erasing more than 50% of yesterday's losses. In comparison, US benchmarks were 5% stronger, also wiping more than 50% of Monday's decline. 

The combination of the coronavirus and Saudi oil war has sent stocks sharply lower, with EU benchmarks losing 8-10% and US equity futures were halted.

The USDJPY pair was offered again on Friday and continues to decline vertically as the virus panic spreads further, but unfortunately, so does the virus. The USDJPY pair was down 0.35% during the morning session on Friday, trading at 105.80, which are seven-month lows for the pair. 

The bullion held its post-Fed gains and consolidated on Wednesday, but on Thursday, it ticked higher again as equities gave up some of their profits. During the London session, gold was trading half a percent stronger, seen at around 1,645 USD.

It looks like the situation is coming under control, and yesterday, the SP500 index managed to defend the short-term uptrend line, which confirmed that the index doesn't want to go lower. At least for now.

The Australian dollar was trading 0.25% higher during the EU session on Tuesday, and the AUDUSD pair was spotted at around 0.6560 as bulls bought the Aussie despite the RBA cutting rates to historic lows and saying more cuts are coming.

The pound continued to fall on Monday and the GBPUSD pair, also known as the cable, was trading half a percent weaker during the Frankfurt session, hovering at around 1.2760.

As the virus outbreak is reaching pandemic levels, traders are running from equities, and main benchmarks have experienced the worst week since the financial crisis in 2008 as nearly all of the indices are down circa 15% on the week.

As mentioned yesterday on our Facebook page, the bullion managed to form a nice falling wedge pattern, which is usually a bullish formation.

The Footsie index was trading half a percent higher on Thursday, underperforming under EU/US indices, and it seems to be lacking upside momentum.
 

Cries were heard in every corner of the globe as the news of the WTI crude oil futures crash spread. Now that we’ve managed to digest this unprecedented event, traders have to get back into action and make their next move but trading on oil is extremely risky in the face of extraordinary volatility.