Ahead of FED Meeting!


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Daily outlook – 10 June 2020

By: Stuart Cowell

USD slips again ahead of FED tonight, AUD & NZD bid. Equities closed lower and are flat in Asia. Gold tests $1720 and USOil pivots through $38.00. China – West relations in focus, Chinese co’s stop looking to the US for IPO listing and AUS admits econ wud suffer if Chinese students stay away. More weak data from Japan & China overnight. Texas hospitalizations at a record high, virus cases spike in SW USA and some California counties.

USDIndex – falls again to test 96.00 (S1) – trades at 96.20. PP 96.50. S2 95.70
EUR – holds well over 1.1300. Trades at 1.1360, (PP at 1.1320), R1 1.1395
JPY – down again at (107.40 (S1), – PP now 107.95 S2 107.9. JPY Banks have taken 50% of FED funding.
GBP – holds significantly over 1.2700 – up to 1.2775 (R1) – R2 1.2840
AUD back over PP 0.6970 to test 0.7000. R1 0.7040, S1 0.6900
NZD – holds over 0.6500 up to 0.6555. R1 0.6585, PP 0.6520 – biggest mover overnight +0.40%now.
CAD – recovered to 1.3485 yesterday – back down into the close. Under 1.3400 again at 1.3370. PP 1.3425, S1 1.3360. GS suggest 15-20% correction for Oil prices & Private Inventories showed a big build.
CHF – below 0.9500, trades at 0.9490 – PP 0.9520, S1 0.9457
BTC – back over PP (9690) at 9740

GOLD – broke over 1700, (S1) yesterday, over 200HR MA 7 PP at 1710 and is testing 1720.R1 1728
USOil – Trades at 38.20 (pp). EIA inventories later expected to show a drawdown of 1.8m. Private inventories registered a build – see CAD for Goldman Sachs comments on correction in prices due.

USA500 – Closed (-25pts, -0.78%) 3207-. FUTS 3215 (PP). DOW Down full -1%, NASDAQ up +0.3%

Today -, All about the FED (no change) but big expectations on outlook comments, especially following NFP on Friday; V, U, Swoosh, or W recovery ?? Before there are US CPI and Weekly Oil inventories.

Biggest (FX) Mover @ (06:30 GMT) NZDUSD (+0.40%) – Holds key 0.6500. Crossing EMA Triggered higher at 02:00 GMT. +37 pip gain. Fast MA aligned higher, Stochs OB, RSI (59 and rising). MACD Histogram (over 0) and Signal line both moving higher. H1 ATR 0.0015, Daily ATR 0.0080.

Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.


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