Market News and Charts for April 22, 2020
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The US dollar has forced the Russian ruble into the defensive as it rallies through the market. The pair should climb its resistance level soon as the safe-haven appeal of the precious greenback kicks in. Aside from that, the Russian ruble is aggravated by the devastating drop of the crude oil contract for May which is unfortunately expected to roll over the June contract.
Bearish investors are in trouble as it remains highly volatile to the crude market. In fact, the crash on Monday opened a wide opportunity for bullish investors Russian ruble falters and the US dollar shines. The fall of the crude market also affects the struggling Russian economy. It appears that the crude market isn’t going to be stabilized soon. This is even if the White House restricts crude imports from other countries such as Saudi Arabia. It will be tough to offset the supply and demand of crude as the country’s transportation remain paralyzed due to the ongoing pandemic.
Bears are pressuring the pair, causing bullish investors to struggle to pull the pair higher to its resistance level. But despite that, the pair is believed to gradually climb to its resistance in the coming trading sessions. This means that the safe-haven appeal of the Swiss franc won’t work against the US dollar, another safe-haven asset. Looking at the chart, its seen that both bulls and bears are struggling to break past the resistance and support levels the pair.
The unprecedented financial mess brought by the collapsing oil market is forcing investors to scramble towards both safe-haven currencies. Moreover, the uncertainty whether the pair will break through its resistance is a question especially considering that European countries are now considering lifting the lockdown restrictions amidst the ongoing battle against the coronavirus pandemic. That would mean that the Swiss economy can continue, and the US economy will remain largely paralyzed.
The Czech krona stands vulnerable and weak against the US dollar in the trading sessions. The odds are clearly against the Central European currency after it released a massive rate cut just recently. Aside from the drastic rate cut from the Czech National Bank, another factor that is currently holding back the Czech krona is the signal from the Czech central bank to start a massive quantitative easing program to offset the impact of the virus on the economy.
Traders are concerned about the short-term and medium-term performance of the Czech krona against the US dollar. In fact, the beloved greenback is getting a boost from the financial mess brought by the collapsing oil market that’s causing chaos. Investors are now scrambling towards the safe-haven appeal of the US dollar especially considering that the US corporate earnings season has bee relatively good to the financial market despite prior concerns about corporate America.
The EURCHF pair is bound to drop to its lowest level since June of 2015. This is thanks to the growing safe-haven appeal of the Swiss franc. Bulls are finding it tough to buoy the pair amidst the ongoing restrictions brought by the pandemic. See, the whole eurozone is in trouble, meaning that investors are opting to go with the safe-haven assets. In this case the Swiss franc in preference to the euro. However, as seen in the chart, bears are also having a difficult time forcing the pair downwards to its support level due to the glimmer of hope in the market.
Recent reports from the region suggest that countries are now considering lifting the restrictions to allow the economy to breathe and slowly return to normal as the curve is finally improving. However, the long-term outlook of the euro remains blurry. The rift between bloc members become evident thanks to the virus. It is exposing the vulnerability of the single currency in the foreign exchange market.
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