Late day sell off in the major indices
The US stocks are ending lower on a late day China concern swoon. The catalyst was a CNBC report that China/US trade deal was "in flux". That did not sit well with investors heading into the weekend. Selling took the indices closer to the session lows.
Down $.11 or -0.17%
WTI crude oil futures are settling today at $62.76, down $-.11 or -0.17%.
The high reached $63.64 and the low extended to $62.52.
For the week, the high reached $63.64 (that was reached today). The low for the week fell to $60.64.
Retraces most of declines from yesterday
The US stocks are off and away and we are seeing red.
The snapshot is showing:
Those levels are a little better than the pre-market calls from the futures. Are the dip buyers back in?
Stays in a channel on hourly chart
The GBPUSD is working on its 6th down day in a row (closed at 1.2798 yesterday) as the talks between Labour stop. The pair reached a low of 1.27357. The GBPUSD has also been down 9 of the last 10 days and run from 1.31756 to 1.27357 in the process.
USD mostly higher.
With stocks down on the back of some fight back from China the JPY is back at the top of the table as the strongest currency of the majors today. The GBP is the weakest as the Brexit talks with Labour collapse. THe CAD and AUD are lower as well on "risk off" flows. The USD is mostly higher with declines only against the JPY.
AUD/USD slips to a low of 0.6873
There isn't much else stopping the pair from a further fall if you're looking at the daily chart. Further support is only seen around the January 2016 lows @ 0.6827-40 next so that will be a key level to watch out for over the next few sessions.
Cable falls to 1.2770, lowest level since 15 January
A horrible week for the pound is just getting worse as cable now falls to its weakest level in four months, breaking below key daily support around 1.2786 and the February low of 1.2771. Further support is now seen closer to 1.2725 before bids and the swing region around 1.2700 will help provide buyers with a key area to lean on.
EUR/USD sits in a narrow 13 pips range on the day so far
Currencies are still mostly in a slumber with little changes across the board as markets continue to find its footing while digesting US-China trade tensions. EUR/USD is mostly steady near unchanged levels as the pair sits around 1.1170-80 so far today.
USD/JPY trades at session lows now, testing the 100-hour moving average
Price is now trading to session lows of 109.58 and is testing the 100-hour MA (red line) as trade tensions between US and China help to underpin the yen at the start of the European morning. China sent out a firm message that it will not be negotiating with the US so long as the latter remains 'insincere' in trade talks, giving out the impression that the stalemate is going to drag on for a really long time.
Sellers in control, but testing a swing area
The EURUSD is trading at new session lows as the trading day moves to a close. The pair has been running lower since stalling the rally near the 100 hour MA (blue line in the chart above). In the early NY session, the price fell below the 100 bar MA on the 4-hour chart (and stayed below). We have moved through the higher targets, and are down testing the last of those outlined from the earlier post. That comes in at the lows from last week at 1.11646-663.
Up $0.85 or 1.37%
WTI crude oil futures settled at $62.87, up $0.85 or 1.37%.
The issues in the the middle east and risk on flows from higher stock prices, have helped to support the price. Technically, the pair tested the 200 day MA the first three days of the week. That MA comes in at $60.62. The low today did not get close to the line. The price moved away. The low today reached $62.08.
USDCNH trades at highest level since November 30th
The USDCNH has moved to a new session high and in the process has moved above the December 2019 high at 6.92399 and trades at the highest level since November 30, 2018. The off shore yuan has been weakening since the middle of April low at 6.6754. A weaker yuan helps to offset some of the hurt from the tariffs. The high from the end of October 2018 reached 6.98021.
EURJPY stalls against its 100 hour MA
The EURJPY based near lows from last week at 122.478 and other lows from May 13 and May 14 at 122.54. That area (lower yellow area in the chart below), was the floor for trading today. The price wandered higher off that base, giving the dip buyers some satisfaction.
Oil hits the highest since May 2
Oil is going with the ebb and flow of the risk trade this week but that raises some important points.
The first one is that even as equities sank early in the week, oil held $60 -- and without even a real test. That should have been the first clue for the bulls.