EUR/AUD Up 1 Pips Over Past Hour, in a Downtrend Over Past 90 Days; is Inching Close to 20 Day Average
It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign.
(Last Updated May 20, 2022 0:25 GMT)
Here’s a look at the main macroeconomic data coming out later today that may impact the forex market.
Metric Name | Reference Period | Currency | Date | Time | Forecast | Outcome |
---|---|---|---|---|---|---|
Switzerland Industrial Production YoY | Q1 2022 | Swiss Franc | 2022-05-20 | 06:30 GMT | ||
China Loan Prime Rate 1Y | 2022 | Chinese Yuan | 2022-05-20 | 01:15 GMT | ||
Euro Area Consumer Confidence Flash | May 2022 | Euro | 2022-05-20 | 14:00 GMT | -21.5 | |
United Kingdom Retail Sales MoM | Apr 2022 | British Pound | 2022-05-20 | 06:00 GMT | -0.2% | |
Turkey Consumer Confidence | May 2022 | Turkish Lira | 2022-05-20 | 07:00 GMT |
The chart below summarizes the price news by currency, showing which currency strengthened vs which weakened when equally averaged against other currencies. Of note is that JPY was the outperformer for the day, changing by 1.59%. Alternatively, NOK changing by -1.88%, making it the worst performer of the bunch.
As for who is on a hot streak, USDTRY has experienced upwards move in 9 of the prior ten trading days.
Currency Pair | Moving Average Period Crossed |
---|---|
EURJPY | 50 |
GBPJPY | 50 |
USDCAD | 20 |
EURGBP | 20 |
USDJPY | 20 |
EURCHF | 20 |
CADJPY | 20 |
From the perspective of the alignment of moving averages — meaning where moving averages are ordered by their duration — we see that USDTRY has perhaps the strongest trend. See the chart below.
One other point on moving averages: the instrument GBPNZD is close to its 200 day moving average.
The Bank of International Settlements helps central banks coordinate their policies. As such, it can be an important institution for forex traders to monitor. Here is the latest from them:
Link | Publication Date | Summary |
---|---|---|
Inequality hysteresis | 2022-05-19 | Growing economic inequality has become a matter of increasing public and policymaking concern in recent years, driven by the compounded effects of technical change and rapid globalisation not fully offset by anti-poverty and inequality mitigating policies.Taken together, these results point to the risk of an adverse feedback loop: recessions persistently worsen inequality, and greater inequality serves to deepen recessions. |
Commodity market disruptions, growth and inflation | 2022-05-18 | The BIS hosts nine international organisations engaged in standard setting and the pursuit of financial stability through the Basel Process. |
Banking in the shadow of Bitcoin? The institutional adoption of cryptocurrencies | 2022-05-18 | This “shadow crypto financial system” serves both retail and institutional clients, such as dedicated investment funds.While the role of retail investors has received much attention, we know less about the role of financial intermediaries in this sector. |
The British pound has fallen hard during the trading session on Wednesday as we continue to see bearish behavior in the Sterling.
–GBP/JPY Price Forecast – The British Pound Falls Hard
It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign.
Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up.
Relative to other instruments in the forex asset class, cadchf ranked 35th the previous day in terms of percentage price change.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
This is a reversal of the price action on the previous hour, in which price moved up.
Given that we see downtrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
The clearest trend exists on the 30 day timeframe, which shows price moving up over that time.
Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up.
The closest is the 50 day average, which is 2560.5 pips away.
For additional context, note that price has gone up 5 out of the past 10 days.