Table of Contents

You may also like:

Dollar retreats as coronavirus concerns cast aside ahead of data, end-of-week action

The market mood is mixed after a late rally in Wall Street allowed the dollar to recover despite a record number of coronavirus cases in the US and the Federal Reserve’s warning to lenders. A speech by the ECB’s Lagarde, several US figures, and COVID-19 statistics are eyed.

President Donald Trump insisted that the US economy will roar forward and not shut down. He is facing an uphill reelection campaign, trailing in the polls against rival Joe Biden in all swing states.

The Federal Reserve has banned the largest banks from share buybacks in the third quarter and paying dividends in for the second one. The move is meant to keep resilient amid high economic uncertainty. The announcement somewhat weighed on sentiment.

US data: Durable Goods Orders beat expectations with an increase of 15.8% in May, while weekly jobless claims disappointed by staying near 1.5 million. Friday’s economic releases include Personal Spending, which is projected to bounce in May, and Personal Income, which carries expectations for a fall. The final Consumer Sentiment Index from the University of Michigan is also eyed.

Gold prices are off their highs around $1,760 amid the more stable mood but could rise if investors are fearful again ahead of the weekend. Stocks may also fall back if investors fear COVID-19 figures continue rising while markets are closed.

EUR/USD is trading above 1.12 ahead of a speech by Christine Lagarde, President of the European Central Bank. She may discuss the current economic situation and the dealings with the German constitutional court. The ECB meeting minutes published on Thursday reiterated the bank’s willingness to act.

AUD/USD is consolidating below 0.68 as coronavirus cases are moving up in Australia. Prime Minister Scott Morrison described the increase is localized.

Oil prices are on the rise once again and helped the Canadian dollar stabilize.

According to Trading Central (3rd party RIA) the EURGBP is long positions above 0.8860 with targets at 0.9290 & 0.9400 in extension.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.9290
1€ 3,333.33€ 1,666.67€ 2,879.24
5€ 16,666.67€ 33,333.33€ 14,396.20
10€ 33,333.33€ 66,666.67€ 28,792.40
25€ 83,333.33€ 166,666.67€ 71,981.00
50€ 166,666.67€ 333,333.33€ 143,962.00

USD/CHF Price Analysis: Thursday’s shooting star keep sellers hopeful below 0.9500

USD/CHF eases to 0.9482, down 0.03% on a day, while heading into the European session on Friday. The pair marked a bearish formation while taking a U-turn from the four-day high the previous day.

As a result, the sellers are targeting a revisit to the immediate support line around 0.9435, with 0.9460 acting as an intermediate halt.

Though, any further downside past-0.9430 will probe 0.9400 round-figure ahead of pushing the bears towards the monthly low near 0.9375.

Meanwhile, a clear break above Thursday’s top above 0.9508 could aim for 0.9550 and 0.9600 consecutive resistances. It should be noted that June 05 top near 0.9650 will be the bulls’ favorite beyond 0.9600.

According to Trading Central (3rd party RIA) the USDCHF is short positions below 0.9550 with targets at 0.9375 & 0.9255 in extension.

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.9375
1€ 2,970.89€ 1,485.44€ 986.37
5€ 14,854.43€ 29,708.85€ 4,931.85
10€ 29,708.85€ 59,417.71€ 9,863.70
25€ 74,272.13€ 148,544.27€ 24,659.25
50€ 148,544.27€ 297,088.53€ 49,318.50