Market Review 29 May 2020

by Constantinos Loizou

  • In the Economic calendar of today we can expect some volatility in EUR, CAD, and USD
  • At 09:00 (GMT) the Eurostat (European Statistics office) will release their Consumer Price index
  • The above captures the changes in the price of goods and services
  • The result is forecasted to decrease to 0.2% considering the last month that was at 0.3%
  • At 12:30 (GMT) the Statistics office of Canada will announce their Gross Domestic Product
  • The above is a measure of the total value of all goods and services produced by Canada
  • The result is forecasted to decrease to -10% considering the last month that was at 0.3%
  • At 12:30 (GMT) the US Bureau of Economic Analysis will release their Goods Trade Balance
  • The above is the difference in value between imported and exported goods during a certain month
  • The previous month the result was at -$64.38B

 

On the charts

 

  • As we can observe on the Brent 4hr chart the price has been traded in an upward trading channel since 22 of April
  • The commodity found twice resistance at 37.250
  • The price has broken below the upward trading channel and retested it
  • Now is at 35.620, below the 20 periods Moving Average (green)
  • On the RSI we can observe a negative divergence combined with a downward trendline (red) while to momentum indicator is at 48
  • Considering the above there is a possibility to see the price moving lower at 33, a price live which consists the 23.6% Fibonacci Retracement Level (From 19.411 to 37.284)