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Forex

Forex Market Weekly Preview - Gold Price Surges to 7-year high

Forex
Forex Market Weekly Preview - Gold Price Surges to 7-year high

In today’s forex market weekly preview, the XAUUSD pair jumped to an intraday high of 1678.70. This is the highest it has been in more than seven years.

24 February 2020 | AxiTrader – Demand for safe-haven currencies surged as fear of the Covid-19 outbreak and its drag on the global economy mounts, with an exception of the JPY which skydived. This suggests that the market could be pricing in a rapid easing by the BOJ as Japan’s economy turns wobbly, with its Q4 GDP recording a -6.3% annualized contraction, a far cry from -3.8% estimates.

Elsewhere, USD rose to a new high with sound domestic data prints while commodity currencies extended their decline as investors shy away from risk assets. Meanwhile, we are also seeing a pullback in U.S. stocks with the S&P 500 and Nasdaq pulling back from Wednesday’s record highs. Looking ahead, developments on the Coronavirus and corporate earnings results remained key drivers of the market.

Weekly Preview: Technical analysis on USDJPY, GBPUSD, USDCNH, XAUUSD, WTI, SPX

CURRENCY: USDJPY

USD/JPY Chart

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Price is facing bearish pressure from our first resistance where we could see a drop below this level to our first support level. Stochastic is showing signs of overbought as well.

CURRENCY: GBPUSD

GBP/USD Chart

Price is facing bullish pressure from our first support where we could see a further push up to our first resistance level.

CURRENCY: USDCNH       

USD/CNH Chart

Price is in the middle of our first resistance and 1st support where we could see price sideways while the market doesn’t have a direction yet. The Ichimoku cloud also shows signs of a bullish trend.

CURRENCY: SPX

SPX Chart

Price is facing bullish pressure from our Ichimoku cloud and our 20 EMA. We remain bullish above our first support level and could see a further push up to our first resistance level.

CURRENCY: XAUUSD

XAU/USD Chart

Gold made a new 7-year high and is now approaching key resistance at 1637.77. Surpassing this resistance will see a new high being made. Moreover, failing to surpass the resistance, we could see the price drop towards support at 1615.58.

Price is also currently testing the upper band of the Bollinger Band indicator. A close above the upper band will see bullish momentum continue. A close below the upper band could possibly signify an impending reversal. 

CURRENCY: WTIUSD (USOIL)

WTI/USD Chart

Oil price currently holding between resistance at 54.75 and support at 52.32. Technical indicators are showing mixed signals as well. Stochastics is reversing below resistance, however, price is holding above moving average and Ichimoku indicator.

Disclaimer

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument. It is not a recommendation to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted. Open a live account with AxiTrader today and start trading.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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