This article compiles the 5 most interesting charts for early June 2020. The charts chosen are the ones with the most interesting weekly timeframe price action scenarios.
The Euro shows a trendline that has its first touchpoint in early 2011. The last time the price touched the trendline was in early 2018.
Although the current price is still quite a bit away from the trendline, the latest bullish bounce makes a trendline scenario more likely.
However, prior to testing the trendline, the price will be facing the 200 period weekly moving average – a major support/resistance zone.
The S&P500 broke above the weekly 50 period moving average last week. Currently, the price seems to be successfully retesting the moving average as support level. If price can hold above the moving average, more upside may be possible.
The price is trading into the large red candle. Such long and straight candles usually allow the price to travel easily because no support or resistance levels exist.
Given the current geopolitical situation, it does not seem like a logical scenario to see the S&P500 reaching all-time-highs again, but the announcement of unlimited QE by the FED and a strong tech sector are driving price action.
After breaking the support level last week, the USD/CAD is seeing a continuation downward. The price is accelerating during its fall.
The green zone marks a gap that hasn’t been filled yet. Gap fills are likely.
Below the gap fill, the price will be facing a long-term trendline.
The significant increase in the money supply may cause more devaluation for the USD going forward.
The EUR/SEK price breached the long-term trendline two weeks ago. Last week, the price also broke through the weekly 100 period moving average as well.
The bearishness seems to be driven by the SEK since the EUR is currently showing a bullish bounce as shown above. A shift in EUR sentiment may accelerate the fall of the EURSEK further.
The Australian Dollar is the strongest mover so far this week. The AUDUSD is driven by USD weakness and AUD bullishness.
The AUDUSD is about to reach the 100 period moving average shortly. A recent swing high is waiting above this long-term moving average.
The AUDUSD has been selling off since mid 2011. If price can break through the cluster of moving averages and resistance levels, a long-term rally is not unlikely.