Market Review 03 June 2020

by Constantinos Loizou

  • In the Economic calendar of today we can expect some volatility in EUR, USD, and CAD
  • Spain, Germany, and Italy announced in the morning their Unemployment rates for the previous month
  • An increase in the above result usually acts as negative for the EUR while a decrease acts as positive
  • At 09:00 (GMT) the Statistics office of Europe will announce the Unemployment Rate for Europe
  • The above it is a leading indicator for the European Economy and the result is forecasted to increase to 8.2% considering the last month that was at 7.4%
  • At 12:15 (GMT) the Automatic Data Processing Inc will release the Employment change in US for the previous month
  • The above is a measure of the change in the number of employed people in the US
  • At 14:00 (GMT) the Bank of Canada will announce their Interest Rate Decision
  • Usually an increase in the Interest rates acts as positive for the respective currency while a decrease acts as negative
  • The result is forecasted to remain the same as the April’s decision, at 0.25%

 

On the Charts

 

  • As we can observe on the EUR/CAD 4hr chart, the price has found support at a previous support level and reacted to the upside
  • The price is now at 1.51260, above the 5 (purple) and 10 (red) Moving Averages (MA)
  • The 5 periods MA crossed to the upside the 10 periods
  • RSI and Stochastic formed a failure swing bottom, and they are now above their extreme areas, indicating some overextension in the previous downside movement
  • Considering the above we may see the price moving higher and testing the 50% Fibonacci Retracement Level and an inside resistance at 1.52200