Market Review 20 May 2020

by Constantinos Loizou

  • In the economic calendar of today we can expect some volatility in GBP, EUR, CAD , Crude Oil and USD
  • At 06:00 (GMT) the National Statistics office of United Kingdom, announced their Consumer Price Index (CPI)
  • CPI is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services
  • The result has decreased to 0.8%, considering the last month that was at 1.5%
  • At 11:45 (GMT) the European Central Bank will announce their Interest rate decision
  • The previous result was at 0%
  • At 12:30 (GMT) the Bank of Canada will announce their Consumer Price Index Core
  • “Core” CPI excludes fruits, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products
  • The result of the previous month was at 1.6%
  • At 14:30 (GMT) the Energy Information Administration will announce the Crude Oil Stocks Change
  • The result is forecasted to increase to 0.967M considering the last month that was at -0.745M
  • At 18:00 (GMT) the Federal Open Market Committee (FOMC) will have a meeting to review the economic and financial condition of USA
  • FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.

 

On the Charts

 

  • As we can observe on the GBP/USD Daily Chart the price has formed a double top formation
  • The price has broken the blue neckline of the formation to the downside and now is retesting it
  • The pair’s price is now at 1.22571, below the 20 days Moving Average (purple)
  • MACD has crossed its signal line to the downside while both are below zero
  • Considering the above we may see the price moving lower at 1.20000, a price level which consists the 161.8% Fibonacci Extension Level (From 1.22461 to 1.26515)