Market Review 04 June 2020

by Constantinos Loizou

  • In the Economic calendar of today we can expect some volatility in EUR and USD
  • At 14:45 (GMT) the European Central Bank will release their decision for the Interest and Deposit rate
  • The results are forecasted to remain the same as the April’s decision, at 0% and -0.5% respectively
  • At 15:30 (GMT) the European Central Bank’s president, Christine Lagarde, will give a press conference regarding the monetary policy
  • Her comments may influence the volatility of EUR and determine a short-term positive or negative trend
  • At 15:30 (GMT) the US Department of Labor will release their Initial Jobless Claims
  • The above is a measure of the number of people filing first-time claims for state unemployment insurance
  • The result is forecasted to decrease to 1800K considering the last month that was at 2123K

 

On the charts

 

  • As we can observe on the AUD/NZD Daily chart the price has found resistance and reacted to the downside
  • The pair has broken the blue upward trendline to the downside, but it returned and retested it
  • On the RSI and MACD, we can observe a negative divergence since oscillators failed to create a higher top like the price (green and red arrows)
  • The price is now at 1.07451
  • Considering the above, there is a possibility to see the price moving lower at 1.05500, a price level which consists the 38.2% Fibonacci Retracement Level (0.99925 – 1.08792)

 

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