- October 23, 2019
- Posted by: range
- Category: FOREX, Technical Analysis
Sterling declined as traders reacted to the latest Brexit news. Yesterday, Boris Johnson won a crucial vote in Parliament with members passing the deal he had negotiated with the European Union. This was the first time that the British Parliament had passed such a vote. However, he suffered a big defeat after the members voted against his timetable to debate proposals. This means that Johnson will not get his deal before the end of the month. It also threw the entire Brexit situation in uncharted territories where delays could be the norm. This is because Johnson’s bill could see many amendments that the EU will likely reject.
US futures declined after a series of earnings and corporate news from the US. There are several companies that released their earnings in the after-hours. Chipotle Mexican Grill jumped after the company released better-than-expected earnings. The company had revenue of 1.4 billion and an EPS of $3.82. This was higher than the consensus estimates of $3.22. Same store sales rose by 11%, which was higher than the expected 9.3%. Meanwhile, Nike stock seesawed after the company’s CEO stepped down. He will be replaced by the current CEO of ServiceNow. The ServiceNow CEO will be replaced by the former CEO of the German software maker, SAP. Meanwhile, Facebook stock declined after 47 attorney generals announced that they were investigating the company.
The New Zealand dollar was relatively unchanged after the country released trade numbers. The numbers showed that in September, exports increased to $4.47 billion from the previous $4.08 billion. Imports remained unchanged at $5.71 billion. As a result, the trade deficit in the month declined to $1.24 billion. These numbers came after the Reserve Bank of New Zealand (RBNZ) slashed interest rates. They also give an indication to the state of the economy as the world goes through weakening. Exports form the biggest part of the New Zealand economy.
The EUR/USD pair was relatively unchanged in the Asian session. As of this writing, the pair is trading at 1.1124, which is slightly lower than this week’s high of 1.1180. On the hourly chart below, the 14-day and 28-day exponential moving averages have made a bearish crossover while the RSI has stabilised below 50. The pair appears to be starting a bearish trend. If this trend is confirmed, the pair may test the important support level of 1.1100. For today, the pair may remain in a holding pattern ahead of tomorrow’s ECB decision.
The NZD/USD pair moved slightly lower after the country released its trade numbers. The pair is trading at 0.6938, which is lower than the weekly high of 0.6435. Previously, the pair was on a strong upward trend. On the hourly chart below, this price is slightly below the 14-day and 28-day moving averages. The two averages are also doing a bearish crossover. The RSI has been on a downward trend and is now at 42. The Bears Power oscillator is also on the lower side. This formation shows that the pair may continue moving lower. If it does, it may test the 0.6350 in the next few days.
The AUD/USD pair moved lower during the Australian session. The pair, which was previously on a strong upward trend, reached a low of 0.6850. On the four-hour chart below, the price is slightly below the middle line of the Bollinger Bands. The RSI has moved from a high of 79 to the current 54. This price is along the 14-day moving average and slightly higher than the 28-day average. The head and shoulder formation show that the pair may continue moving lower. For today, the pair may move to the important support of 0.6830.