Both gold and crude oil show signs of technical inflexion

[Focus on today] Friday, May 22, 2020

 

① 07:30 Japan’s annual core CPI annual rate in April

② 11:00 Bank of Japan announces interest rate decision

③ 14:00 Monthly rate of UK retail sales after seasonal adjustment in April

④ 19:30 European Central Bank announced the minutes of monetary policy meeting

⑤ 20:30 Canadian retail sales monthly rate in March

⑥ 01:00 The total number of oil drilling in the United States to May 22

Fundamentals:

 

[Trump: If the second wave of outbreaks will not close the United States]

US President Trump said on Thursday that if the second wave of the new coronavirus outbreak occurs in the United States, “we will not shut down our country.”

 

[Powell said the outlook faces “a new level of uncertainty”]

Fed Chairman Powell said that the US economic outlook is facing “a new level of uncertainty.” Before the economic recovery, the Fed’s monetary policy actions will not be lax.

 

[New data from the United States at the beginning of last week added 2.438 million] Data released by the US Department of Labor on Thursday showed that the number of people claiming unemployment benefits in the United States to May 16 was 2.438 million, which was the seventh consecutive week of decline The higher than market expectations of 2.4 million people, the previous value was revised down from 298.1 to 2.687 million, because Connecticut said it had misreported its number.

 

[Trump administration expresses its intention to withdraw from the “Open Sky Treaty”]

According to foreign media reports, the Trump administration has expressed interest in launching the Open Sky Treaty. It is reported that the treaty was signed in 1992 and entered into force in 2002. A Contracting State may conduct unarmed reconnaissance on the entire territory of other Contracting States in order to verify the other party ’s implementation of international arms control treaties. There are currently 34 parties to the treaty, including Russia and most members of the North Atlantic Treaty Organization.

 

[A new bill passed by the U.S. Senate may lead to a substantial delisting of Chinese stocks]

On May 20th, local time, the US Senate unanimously passed the Foreign Companies Accountability Act, which aims to require certain securities issuers to prove that they are not owned or controlled by foreign governments. Some accounting and auditing requirements in the bill may cause dilemmas for Chinese stocks listed in the United States, and may even lead to a large number of delistings. The bill needs to be passed by the House of Representatives before the president signs it to take effect.

 

[British five-year Treasury bond yield fell below zero for the first time] On Thursday, the British five-year Treasury bond yield fell below zero for the first time in history. The day before, the British government issued long-term government bonds with negative yields for the first time.

 

[Venezuela warns the US not to stop Iran from sending oil]

The Venezuelan government warned the United States on the 20th not to prevent Iranian tankers from delivering gasoline to Venezuela, saying that “blocking these ships from reaching their destination would violate humanity and constitute a crime.” Since April, the United States has sent warships to patrol the Caribbean near Venezuela under the name “Drug Control”.

Technical side:

XAUUSD:

(Golden 1H chart)

Judging from the gold daily chart, two yin and two yang, 5 antenna turning head down, the 1 hour chart fell below the upward trend line, the market turned from short to short, and the short line under the draw.

Pressure level: 1739

Support: 1713

Operation strategy: shorting near 1739, target 1715, stop loss 1744

EURUSD:

(EURUSD 1H chart)

From the 4 hour view of the euro against the US dollar , MACD has a dead fork. In 1 hour, the antenna of Figure 5 passes through 60 antennas, forming a trend of a dragon entering the sea.

Pressure level: 1.0955

Support level: 1.090

Operation strategy: Short selling near 1.0955, target 1.0905, stop loss 1.0985

GBPUSD:

(GBPUSD 1H chart)

Looking at the GBP / USD daily line, the 60-day and mid-track line stack strengthened resistance suppression, the 1-hour chart fell below the upward trend line, and the short-term rebound line.

Pressure level: 1.2250

Support level: 1.2130

Operation strategy: shorting near 1.2250, target 1.2150, stop loss 1.2300

UKOIL:

(UKOIL 1H chart)

Looking at the oil line from the daily oil level, the hammer line fell and fell below the upward trend line within 1 hour.

Pressure level: 36

Support level: 34

Operation strategy: shorting near 35.9, target 34.4, stop loss 36.4

US30:

(US30 Daily chart)

Judging from the daily chart of the US Dow, the price fell below the three major moving averages, the 60 antenna back pressure, the early rebound, too much, the probability of a second correction is greater.

Pressure level: 23700

Support level: 23000

Operation strategy: shorting near 23700, target 23100, stop loss 23800

*************** Notes for trading **************

1. Follow the trend and keep in mind of risk control

2. Entry can be added or minused by 5 pips, exit can be added or minused by 5 points

3. It is recommended to take half of the profit after 50 pips of profit, and the rest position with stop loss of entry.

4. Orders that arrive at the entry point before 12 pm are valid, and subsequent orders are invalid. (Unless specified)

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(The above personal strategy is written based on the objective and independent principles. It is for reference only and does not represent any direct operational advice to investors. Investors will be responsible for the profits and losses of the market.

 

MYFXSchool Analyst: Michael

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