Currently lower for a sixth day, bitcoin futures have just tested the 200-day average for the first time this year. This clearly marks a pivotal moment for bulls and bears over the near term, but we also have to factor in the higher timeframes.
Matt Simpson, Market Analyst at City Index and Forex.com
With key levels holding and bullish divergences forming, USD/JPY looks like it may want to retrace higher over the near term before its bearish trend resumes and head for the 146 - 47 area.
Matt Simpson, Market Analyst at City Index and Forex.com
USD/CAD has continued higher for a fourth day, but I suspect this is part of a countertrend move around a larger move lower.
Market positioning his extreme levels of record short exposure to CAD futures last year, and many of these bears refused to return despite USD/CAD continuing higher. The sharp reversal lower from 1.48 also suggests we have seen a...
After a 3-week rally which stalled around the 64c handle with a shooting star candle, a pullback was almost inevitable. but we have already seen AUD/USD fall for four consecutive days, and recent history shows its bearish streaks tend to max out at five down days. Given support is nearby and the AU-US 2-year yield is rising, I am now seeking a swing low around the...
Even as recently as two weeks ago, the thought of fed cuts were in the distant past. Yet a slew of weak data from the US since Friday including two consumer sentiment reports and a surprise PMI miss has seen markets reconsider a 25bp Fed cut in June. Today I cover bond yields, the US dollar index and futures exposure to update my dollar outlook.
Matt Simpson,...
The ASX 200 futures market has fallen close to 5% from its all-time high, with 5 of the 7 candles since the top being bearish. However, the daily RSI (2) reached oversold on Friday, a bullish pinbar formed on Monday and a small bullish divergence is now forming on the daily and 1-hour chart. The pinbar low also found support at a weekly VPOC (volume point of...
This is a bit of a scrappy chart, but I still see the potential for a cheeky bounce.
WTI crude oil is trying to snap a 4-week losing streak, by stalling around a 50% retracement level. Last week's candle was an inverted hammer, and the previous two weeks have both closed above the 50% level.
A bullish divergence formed on the daily RSI (2) ahead price action...
I have outlined my bearish case for AUD/JPY for the year in prior articles and videos, but today I want to look at a potential countertrend setup.
A bull flag is forming on the daily chart. Usually I'd prefer to see such patterns during a strong uptrend as a continuation pattern. But given we saw a false break of an elongated bullish pinbar and sharp reversal...
The S&P 500 and Nasdaq have once again reached record high, leaving the Dow Jones for dust in its choppy consolidation. But I think we're now facing a relative shift in their performance, which could see the Dow lead the way and close its gap with its Wall Street Peers.
Matt Simpson, Market Analyst at City Index and Forex.com
The RBNZ just delivered their third 50bp cut in a row, and they have left the door open for further easing this year. And given I expect the RBNZ's cash rate to remain beneath the RBA's for the remainder of the year, it could pave the way for a bullish breakout on AUD/NZD.
Matt Simpson, Market Analyst at City Index and Forex.com
The RBA have just cut their cash rate for the first time since late 2020. Using their monetary policy statement and updated forecast, I provide my instant high-level view of what this could mean fir future policy - with an update to my AUD/USD outlook thrown in for good measure.
Matt Simpson, Market Analyst at City Index and Forex.com
USD/CAD has spent most of the past two weeks stuck on sell mode, after its short-lived rise to the 22-year high of 1.48 came crashing down thanks to tariffs being delayed.
Due to bears closing shorts on CAD futures and bulls shying away from long USD bets, my core view is for USD/CAD down to 1.40, just above the 2022 high. But over the near term it shows the...
My core bias this year is for the Japanese yen to outperform, and for yen pairs such as GBP/JPY, EUR/JPY and AUD/JPY etc to suffer.
We are currently within a countertrend bounce against a much larger bearish move on GBP/JPY, but a doji formed just beneath a resistance cluster on Thursday to suggest the bounce is pausing, if not correcting itself.
The 1-hour...
A hot set of inflation figures from the US alongside risk-on outflows from then yen helped USD/JPY post its best daily gain of the year. While the daily chart shows Wednesday's high stalled at trend resistance, but the strong bullish trend on the 1-hour chart suggests its more likely we'll see an upside break of it than not.
The 50-day SMA at 155.22 makes a...
The ASX 200 reached a record high in today's session, but it's not a convincing record high in my books. If anything, it could signal yet another false break. Using the ASX cash and futures market alongside Wall Street indices, I delve into why we need to be on guard for another bull trap before the real move potentially begins.
Matt Simpson, Market Analyst at...
It seems everyone bullish the USD, waiting for its inevitable breakout above 110. But a subtle shift of bullish exposure to USD futures suggests the game is changing, and that a breakout may not be assured. Using market positioning from CME futures markets, dollar index and commodity FX charts, I take a closer look.
Matt Simpson, Market Analyst and City Index and...
Crude oil prices fell over 11% from the January high before support was found at the 200-day SMA and 50% retracement level on Friday. Trump's latest tariffs saw commodities rise on inflationary concerns, and that allowed WTI futures to post a daily gain of 1.6% - its best day since the January high.
The 1-hour chart shows an impulsive move with no immediate...
Given the decent ADP report just delivered ahead of Friday's NFP figures, I'm curious to see whether the direction of ADP can be an indicator of what to expect on the headline Nonfarm growth figure. Armed with another spreadsheet, I take a look.
Matt Simpson, Market Analyst at City Index and Forex.com
