Forex News for North American Trading June 2, 2020
In other markets;
- Spot gold trades from $ 13 at -0.75% to $ 1,726.66
- WTI crude oil futures are trading up $ 1.51 or 4.26% to $ 36.96. As soon as it came out, there was a surprise draw of 0.5 million barrels against expectations for a construction of 3 million barrels in the weekly crude oil inventory from the data API private data
On the American stock market today, the main stock indexes are gaining for the 2nd consecutive day in June. The Dow industry leads with an increase of 1.05%. The S&P Index and the NASDAQ Index have increased in 6 of the last 7 trading days. Today, European stock indexes are also closing higher, the German DAX increasing by 3.75%. The British FTSE 100 was the weakest of the winners with a gain of 0.87%.
Every morning at the start of the North American session, I take a snapshot of the ranking of the main currency pairs. In this morning’s post, AUD and NZD were the strongest, while JPY and CHF were weakest. The rankings are determined by accumulating the snapshot of the percentage changes of each currency in relation to both. Here’s what that ranking looked like:
Rarely at the end of the day, the classification remains the same. There is usually some interference in the ranking. Today, the ranking is exactly the same, but the cumulative variations of the strongest and the weakest are almost doubled and more than doubled. The AUD had a cumulative gain of 4.61% at the start of the day and a total gain of 8.94% at the end of the day. The JPY recorded a cumulative drop of -4.07% at the start of the day and a cumulative drop more than double of -10.9% at the end of the day. For the USD, the cumulative drop was -2.11 at the start and weakened but only from 0.33% to -2.44% at the end of the day.
Currency movements followed a “risk on”. Basically, the market continues to boast of a recovery from the coronavirus. This helps pairs like AUD, NZD and GBP, and hurts safe haven currencies like JPY, CHF and USD. JPY crosses also tend to do better in an “at risk” environment.
By taking a look at some individual pairs, an overview of the technical characteristics shows:
- AUDUSD. The AUDUSD has been moved to the highest level since January 17 and is looking to the next target above 0.69377 (December high swing before the drop). The high price today has barely reached the level of 0.6900 so far at 0.6889. A lower channel the trend line is located at 0.6848 on the hourly chart and goes higher.
- NZDUSD: The NZDUSD ran above – end far – its moving average of 100 days at 0.6308. The pair is exiting at 0.6365, near the day’s highs. The price traded at the highest level since March 9. Technically, the closest risk before the new day is at the growing moving average of 100 bars on the 5-minute chart at 0.6351. The price tends to rise today and has kept a safe distance from this moving average level for most of the London / New York session. A move below its could see corrective activity with a New York session corrective dip at 0.6341 as another bearish target on more weakness. In the absence of this and the buyers keep control with the next major target around the 0.6445 level (high price from March 9)
- GBPUSD: GBPUSD spent the New York session up and down with a cap on its 100-day moving average of 1.2569. The high price of the New York session stopped at this level. The pair closed the day at 1.2550. In the new day, if the price is to rise higher and maintain the upward momentum, it is essential to exceed the moving average of 100 days. If we do not do this, we should see a further downtrend with the closest support target at 1.2524.
- EURUSD: EURUSD – like GBPUSD – spent the NY session trading up and down. The salvation of the day stalled just before the level of 1.1200 to 1.11954. The low corrective level of the session of London, stalled at 1.1153. Yesterday’s high swing was also at this level. Friday’s salute was at 1.11465. The 1.11465 to 1.1153 area is support for the new day. Stay on top and the bulls keep control.
- USDJPY: The USDJPY rose sharply during the New York session, going from 107.78 to a high of 108.76 (or almost 100 pips). In the process, the pair moved above the converged 100 and 200 day moving averages around the 108.30 level. There was a stall near these moving averages, but as the market neared London’s fixation, buyers came in and pushed the pair higher. The pair is trading at 108.65 at the end of the day. It will be necessary to go back below the 100 and 200 day moving averages to further reverse the bias in favor of sellers. Until then, buyers keep control