GBP/CHF slipped below the 50-day MA this week. The line is currently acting as resistance at 1.1905. Earlier declines below it led to bigger moves down.
Daily Market Analysis
USD/JPY has returned below the 50-day MA as the market’s risk aversion increased. It seems that the market has formed an interim top.
EUR/USD recovered from the March-April support line and formed a “Piercing line” candlestick pattern on the D1.
AUD/NZD formed a “shooting star” candlestick on the W1. The pair ran into the resistance line from the 2018 highs and failed to close above the 200-week MA at 1.0650.
GBP/AUD has breached the support line from August 2019. What is happening at the chart looks like a pretty big change.
The movement in GBP/USD hasn’t started yet, but it surely will. For now the pair’s consolidating in the 1.2390/1.2295 area.
NZD/USD may be on the verge of breaking to lower levels. The pair formed a doji candlestick with a long upper shadow on the D1 - this is a bearish sign.
EUR/USD had been testing the support line connecting March and April lows. On Thursday, the pair slipped below this line.
Britain is at the crossroads of the virus fight. What is the outlook for the GBP/USD?
Oil prices remain under pressure. After Brent has broken the consolidation range to the downside and fell below 30.00, it got some support ahead of 27.00.
GBP/JPY has formed a higher low, retraced 50% of the February-March decline, closed above 134.40 on Wednesday and is trading above the March high.
On the H4, we can see that EUR/USD has found a temporary bottom in the 1.0770 area. The pair is now trading above the former short-term resistance line going down from March highs (1.0835).