Global Markets

The Shanghai Composite Index has declined for the third day in a row with sentiment remaining bearish for the Chinese economy and this is likely inspiring further declines in other Asian equities today, such as the Nikkei 225 and Hang Seng. The Shanghai Composite Index will be closed on Thursday and Friday due to the World War II 70thanniversary commemorations, which will provide the market with some breathing space after receiving continual punishment over the past couple of weeks. The closure might be used as a period where policymakers in China get together and discuss policy measures that could be taken to stabilize the China markets.

GBPUSD

The GBPUSD selling has continued with the pair now dropping to levels not seen since June, as the continual financial volatility and risk-off trading environment weakens the Pound. Market participants will be looking towards today’s ADP employment report for some indications towards what Friday’s NFP number will be. If the report impresses, this could install bullish momentum on the USD and drag the GBPUSD even lower.

Brazilian Real

The bearish sentiment on the Brazilian Real is continuing with the news from last week that Brazil had falling into a recession weighing further on sentiment, which has already been dragged down by the continuous government protests. The decline in commodities has weighed heavily on the Brazilian economy, but the dramatic currency weakness is also adding intense inflation pressures onto the economy. Speaking of commodities, the falling price of oil is being seen as a primary reason behind the Canadian economy falling into a recession for the first time in around six years. The CAD was already fundamentally bearish, but the news of a recession is going to add further selling pressures. The CAD weakness can be observed with the USDCAD regaining buying momentum.

Another milestone low for the AUDUSD

The AUDUSD has fallen below 0.70 for the first time in around a decade as investors looked unfavorably on the overnight Australian GDP data. The economy expanded by 0.2% in Q2, which is the lowest growth in two years. The GDP report suggests growth has been hit by a decline in mining and construction activity, while there has also been a 3.3% slide in exports. The value of the AUD is expected to decline further in the future and sentiment still remains bearish as the AUDUSD ventures to levels not seen since 2009.


EURAUD

The weakness from the AUD has provided fuel for the EURAUD bulls to potentially trade back to the 1.6580 highs. This market remains bullish as long as prices can keep above the previous higher low of 1.5500 which is also the bullish trend defining level.

EURAUD


EURNZD

Sentiment for the NZD still remains bearish because of the ripple effect coming from the developments in China. The EURNZD is technically bullish and lagging indicators such as the MACD and 20 SMA agree with this statement. Resistance may be found at 1.7950, but a breakout and daily close above this level may open a path to the next relevant resistance at 1.8900. A move back below 1.7250 invalidates this daily bullish outlook.

EURNZD


EURCAD

The falling prices of oil have put pressure on the CAD. The EURCAD is technically bullish on the daily timeframe. Prices have found support above the 1.4700 which is also the higher low. On the condition that the 1.4700 support level holds, prices may trade back to the 1.5500 level.

EURCAD


AUDCHF

The Australian economy has taken a hit due to the global decline in demand for commodities. This pair is technically bearish. Prices reside below the 20 SMA and the MACD trades to the downside. As long as prices can stay below the 0.6950 resistance, then there may be a further decline back down to the 0.65350 support.

AUDCHF

Disclaimer:This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited. 

USD/JPY News

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data. 

AUD/USD News

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.

Gold News

Ripple's move above this key level could trigger nearly 50% rally for XRP

Ripple's move above this key level could trigger nearly 50% rally for XRP

Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally. 

Read more

Will they won’t they cut rates is the question of Q2?

Will they won’t they cut rates is the question of Q2?

There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.

Read more

Majors

Cryptocurrencies

Signatures