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Devata Tseng

Gold Nudges Up Ahead of US Q1 GDP

Spot gold has seen a 1.56% retracement over past two weeks after hitting its highest level of 1295.37 last seen on November 9th 2016. That said, this retracement has held above the support line at 1260 over the past two days. On the 4-hourly chart, the price broke the downtrend line resistance on April 26, indicating bullish momentum has been increasing. The daily Stochastic Oscillator reading is below 30 suggesting a rebound. US Q1 GDP annualized initial reading, Q1 PCE and Q1 core PCE ...

Devata Tseng

EUR/USD Trades Below 1.0900 Post the ECB Conference

The outcome of the first-round voting of the French presidential election pushed EUR/USD up, touching the highest level of 1.0950 on April 26 since November 10. EUR/USD has been consolidating since April 24, flirting with the significant psychological level at 1.0900. Today, the European Central Bank (ECB) announce its benchmark rate, marginal lending rate and deposit rate on hold, at 0.0%, 0.25% and -0.4% respectively, and leave the asset purchase programme unchanged of 60 billion Euro per ...

Devata Tseng

S & P 500 Bulls Test Major Resistance Ahead of Trump’s Tax Reform

Last week the US President Trump stated on twitter that he will “unveil his major tax reform plan on Wednesday April 26”. The recent reported US Q1 corporate earnings have been outperformed, pushing US stocks up. Tuesday evening, the Dow Jones index hit a 6-week high of 21022, and the S & P 500 index hit a 8-week high of 2392.15. The S & P 500 index has rallied around 1.7% over the past two days. The value of US stock markets has reached the highest level since 2004, some investors worry US ...

Devata Tseng

EUR/USD Consolidates Post French Election Surge

EUR/USD has rebounded since April 11, as a result of the weakening of the dollar. The outcome of the first-round voting of the French presidential election was revealed on Sunday night April 23. As consensus, the top two candidates: the independent centrist Macron and the far-right wing Le Pen, won 23.7% and 21.7% of votes respectively. They will the second-round of voting on May 7. As Macron got the first place, surpassing Le Pen with 2% of votes, market concerns over the EU’s collapse after ...

Devata Tseng

EUR/GBP Tests Major Support Ahead of the French Election

EUR/GBP has retraced since March 13. Tuesday April 18, EUR/GBP hit the lowest level of 0.8312 since December 5, due to the UK early general election shock. However, the downtrend was held above the significant mid-term major support level at 0.8300 since then. The first-round voting of the French presidential election will be held this Sunday April 23. The consensus is that the Centrist Macron and the far-right wing Le Pen would likely get into the second round, then Macron would likely win the ...

Devata Tseng

USD/JPY Hovers Above Support Ahead of French Election

Monday April 17, USD/JPY hit the lowest level of 108.12 since November 15, as a result of the strengthening of the yen on markets’ safe haven demand. However, the bearish attempt was held above the 108.00 support line since Monday. On the 4-hourly chart, the 10-SMA crossed over the 20-SMA from below on Wednesday, the bulls have broken the downtrend line resistance, indicating the bearish momentum has been waning. The daily Stochastic Oscillator reading is around 30, suggesting a rebound. The ...

Devata Tseng

EUR/JPY Bulls Broke Major Downtrend Line Resistance

EURJPY had been trading along the upside short-term downtrend line resistance since March 22, saw a record losing streak. It was caused by the strengthening of the yen pushed up by markets’ risk aversion sentiment. This morning we saw the release of the Eurozone CPI and core CPI for March (YoY), were 1.5% and 0.7% respectively, in line with expectations and the previous figures. The Eurozone trade balance for February was a 17.8-billion-euro surplus, beating expectations of a 16.2-billion ...

Devata Tseng

GBP/USD Nears Mid-Term Major Resistance After Theresa May Calls Early General Election

The UK Prime Minister Theresa May made a speech this morning at 10 Downing Street. She stated that the Cabinet had agreed to call an early general election, to be held on June 8. The UK government is determined to execute Brexit process and negotiation with the EU, and this is the right decision for the country’s interests. The post-Brexit vote economic indicators have shown that the UK economy is more solid than expected to withstand Brexit impact. However, some other political parties are ...

Devata Tseng

WTI Trades at Mid-Term Major Resistance Zone

The US EIA crude oil inventories figure (the week ending April 7) released on Wednesday, saw the biggest drop in 2.166 million barrels this year. However, the figure failed to push oil prices higher. WTI and Brent crude oil spot retraced around 1%, and 1.13% respectively on Wednesday. The reasons for the fall comprise both technical and fundamental factors. Technically oil prices were trading at the mid-term major resistance zone, where the selling pressure is heavy. Fundamentally, markets ...