Overnight, the Reserve Bank of New Zealand (RBNZ) held its Official Cash Rate (OCR) unchanged at 5.50% for an eighth consecutive meeting, which was widely expected by markets and economists. What did surprise at today’s meeting, however, was the central bank's shift to a more dovish stance, indicating that a rate reduction may be closer than previously...
The Australian dollar (AUD) is on a tear versus the Japanese yen (JPY) and displays little sign of slowing, with the AUD/JPY currency pair recently refreshing all-time highs of ¥108.60 after rupturing the ¥107.86 peak formed in 2007.
All-Time Highs and H4 Ascending Triangle
Regarding current price action, ¥107.86 will likely be viewed as a potential support...
The CAC 40 – a major stock market index covering 40 of the largest companies by market capitalisation listed on the Euronext Paris – recently formed a double-bottom pattern off lows at 7,464. The neckline, taken from the high of 7,725, has also recently been challenged, yet price has failed to establish a close above the barrier to complete the pattern. Therefore,...
BTC/USD remains entrenched in a corrective slide, bolstered by the Fed minutes emphasising reluctance to ease policy until confidence in the disinflation process is observed.
Early Downtrend Signalled, But…
Down for a fourth consecutive week and shedding -6.3%, the major crypto pairing is now displaying early signs of a longer-term downtrend on the weekly...
According to the US Dollar Index, the US dollar ended last week at session lows, erasing approximately -1.0% and snapping a four-week winning streak.
Although the monthly chart exhibits a long-term uptrend, immediate space demonstrates limited support or resistance. Consequently, the break of the 50-day simple moving average (SMA) at 105.12 and daily support at...
Following the completion of a bullish pennant pattern, taken from 19,977 and 19,472, the Nasdaq 100 ended Wednesday’s session refreshing record highs of 20,186. Bullish pennant patterns CAN form in the direction of the underlying trend in strong upward markets (this is not a rising wedge as these are typically longer-term structures).
While a retest of the...
The AUD/USD currency pair is interesting at the moment.
From the monthly chart, a recent upside move in the currency pair has seen price inch above key resistance, made up of a horizontal base from $0.6670 and an upper boundary derived from a symmetrical triangle, or ‘coil’, drawn from the high of $0.7158. This has potentially opened the door to the $0.6872ish...
With just one day to go until Election Day in the United Kingdom, the only thing in doubt is the scale of the Conservatives’ defeat.
Despite Boris Johnson’s surprise appearance last night in Chelsea asking voters to support the government in spite of his complicated relationship with Prime Minister (PM) Rishi Sunak, the PM is preparing for his exodus as the...
According to the Job Openings and Labor Turnover Survey, the May Job openings report surprised to the upside, rising by 8.14 million (4.9%), up from April’s downwardly revised print of 7.92 million (4.8%), a three-year low. As per the Reuters poll, recent data surpassed the market's median estimate of 7.91 million and came within striking distance of the upper...
Ahead of today’s eurozone CPI inflation report (9 am GMT), the EUR/GBP cross is approaching an interesting resistance level of £0.8500.
What makes this level a worthwhile watch is that the base is complemented by several additional resistances.
These resistances include the potential ascending resistance line, drawn from the low of £0.8493, which, as you can...
The Australian Bureau of Statistics (ABS) released a report overnight revealing a significant increase in inflation. From +3.6% in April, inflation rose by +4.0% in the twelve months to May in Australia. This data, which surpassed the market’s median estimate of +3.8% (Reuters poll), is particularly noteworthy. The monthly CPI indicator accelerated for a third...
UK Prime Minister (PM) Rishi Sunak surprised everyone on 22 May. Speaking outside 10 Downing Street, the PM called for a snap general election on 4 July.
Parliament was subsequently dissolved on 30 May, with all business in the House of Commons and House of Lords ending.
Why Did Sunak Call for an Early Election?
Contrary to expectations of an autumn...
In three successive days of selling, triggered after a bearish outside reversal formed on Thursday last week from all-time highs of $140.76, Nvidia (ticker: NVDA) has shed approximately -15.0% from the peak.
The company’s market value dropped more than US$500 billion to US$2.91 trillion, consequently pulling the chipmaker back to third place after briefly...
The price of silver versus the US dollar (XAG/USD) offers an interesting technical picture.
Friday finished as a bearish outside day reversal from the upper boundary of a descending channel (from $32.30). However, this sent the precious metal back under both the Conversion Line (blue at $29.76) and the Base Line (red at $30.60), which some could view as a bearish...
The EUR/GBP cross recently shook hands with support made up of Fibonacci ratios between £0.8408 and £0.8434 (consisting of 78.6% and 88.6% retracement ratios and a 1.618% projection ratio). While buyers have attempted to make a stand from the aforementioned area, the trend has largely favoured bears since November’s top (2023) at £0.8766. A clear descending...
Double-Bottom Pattern Neckline and Ichimoku Cloud Resistance
Blackrock Inc. (ticker: BLK) recently established what many chartists would recognise as a double-bottom pattern from around $753.83. The neckline for the pattern is seen at $789.08, which has yet to be breached, so the pattern’s formation has not been completed.
Once, or if, we see a daily close...
As widely expected by markets and economists, the Reserve Bank of Australia (RBA) held the Official Cash Rate (OCR) at 4.35% (12-year high), marking the fifth consecutive meeting on hold. The central bank has also left the door ajar for a rate increase should price pressures continue to rise.
Rate Statement Unchanged
The accompanying rate statement largely...
Following the Bank of Japan (BoJ) maintaining its overnight rate between 0.0% and 0.1% and announcing that a bond-taper plan will be delivered at next month’s policy-setting meeting, the Japanese yen (JPY) and yields traded southbound.
Technical View Supports Buyers
Technically, the USD/JPY is an interesting market. In the long term, the trend is...
