Daily Trading Analysis 08.06.2020

Trading Analysis EUR/JPY

The Preliminary Japanese Current Account Balance for April was reported at ¥260.3B. Economists predicted a figure of ¥480.0B. Forex traders can compare this to the Japanese Current Account Balance for March, which was reported at ¥1,971.0B. The Final Japanese GDP for the first quarter decreased by 0.6% quarterly and by 2.2% annualized. Economists predicted a decrease of 0.5% and 2.1%. Forex traders can compare this to the Japanese GDP for the fourth quarter, which decreased by 0.9% quarterly and by 3.4% annualized. Final Private Consumption for the first quarter decreased by 0.8% quarterly, and Final Capital Expenditure increased by 1.9% quarterly. Economists predicted a decrease of 0.7% and an increase of 1.4%. Forex traders can compare this to Private Consumption for the fourth quarter, which decreased by 2.8% quarterly and to Capital Expenditure, which decreased by 0.5% quarterly. Final External Demand for the first quarter decreased by 0.2% quarterly. Economists predicted a decrease of 0.2%. Forex traders can compare this to External Demand for the fourth quarter, which increased by 0.5% quarterly.

Our Analysis:

Should price action for the EURJPY remain inside the or breakdown below the 123.450 to 124.450 zone the following trade set-up is recommended:
  • Timeframe: D1
  • Recommendation: Short Position
  • Entry Level: Short Position @ 123.750
  • Take Profit Zone: 117.000 – 117.800
  • Stop Loss Level: 125.000

Alternative scenario:

Should price action for the EURJPY breakout above 124.450 the following trade set-up is recommended:
  • Timeframe: D1
  • Recommendation: Long Position
  • Entry Level: Long Position @ 125.000
  • Take Profit Zone: 126.800 – 127.500
  • Stop Loss Level: 124.450


Trading Analysis of GOLD/USD

In April, global central banks bought 31.6 tons of gold to replenish the gold reserves, the World Gold Council (WGC) estimated. This is 24% less than a month earlier and 35% less than in April last year, but still relatively close to the average monthly volumes for the last half of the year (34.7 tons). The slowdown in purchases was quite expected, WGC notes, given how actively central banks were buying gold in 2018-2019. 


Our Analysis:

Provided that the price is below 1701.00, please follow these recommendations:
  • Time frame: 30 min
  • Recommendation: short position
  • Entry point: 1689.79
  • Take Profit 1: 1676.00
  • Take Profit 2: 1688.00


Alternative scenario:

In case of breakout of the level 1701.00 and the consolidation of the price above this level, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 1701.00
  • Take Profit 1: 1712.00
  • Take Profit 2: 1722.00


Trading Analysis of USD/CAD

The USD/CAD fell to a 3-month low and aimed at 1.3400. The US dollar attracted buyers despite the general improvement in the market sentiment as the NFP report came out much stronger than expected. This report increased the probability of V-shaped economic recovery as well as hopes that the worst is over. Meanwhile, the loonie as a commodity currency is getting a decent support today due to the bullish dynamics of oil quotations. In addition, the Canadian employment report showed a surprisingly strong recovery of the national labor market.


Our Analysis:

Provided that the currency pair is traded below 1.3445, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: short position
  • Entry point: 1.3427
  • Take Profit 1: 1.3385
  • Take Profit 2: 1.3355


Alternative scenario:

In case of breakout of the level 1.3445, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 1.3445
  • Take Profit 1: 1.3470
  • Take Profit 2: 1.3500
Risk Warning: Forex and CFD trading carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with CFD trading before deciding to trade. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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