Market Review 08 April 2020

by Constantinos Loizou

The Federal Open Market Committee (FOMC) Meeting

  • In today’s Economic calendar we can expect to see some volatility in the CAD, USD and Crude Oil
  • At 12:30 (GMT), the Statistics office of Canada will announce their Building Permits data of the Country
  • Those figures show the number of permits for new construction projects
  • The result is expected to decrease to -4.5% considering that last month was at 4%
  • At 14:30 (GMT), the U.S Energy Information Administration (EIA) will announce the Crude Oil Stocks Change
  • The result is expected to decrease to 10.133M barrels, considering that last month was at 13.834M barrels
  • At 18:00 (GMT), theBoard of Governors of the Federal Reserve System of the USA will release the Federal Open Market Committee (FOMC) Minutes
  • These minutes include discussions of the economic and financial factors

On the Charts

 

  • As we can observe on the Crude Oil Chart the price is now at 25.20
  • The price is above the 20 days Moving Average (Orange)
  • A positive divergence has been observed on the RSI, but extra caution must be taken as we are in a downtrend
  • Positive Divergence occurs when in downtrend the Indicator is making higher highs and higher lows, whilst the price of the Instrument is making lower highs and lower lows
  • Therefore, there is a possibility to see the price moving higher again to $29.28. However, a breakout of that level could lead the price to $36.35, a price which consists a previous resistance level, and the 38.2% Fibonacci Retracement Level (From 65.65 to 19.27)
  • On the other hand, we may see the price testing the $19.27 price level again