Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
USD: technical outlook
2020-05-27 • Updated
The confusion created by the Sino-American relations coupled with virus-related economic factors pushed the USD to rise against some currencies and lose against the others in today’s session. Let’s see a technical disposition in the most interesting cases so you can set your trades accordingly.
USD/ZAR and USD/MXN
The last four weeks saw the greenback’s decline against the South African rand and the Mexican peso with the Moving Averages changing their configuration in the middle of May. Currently testing local supports, the prices of these currency pairs are in consolidation that is likely to end soon as well as the balance of the MAs. The Awesome Oscillator identically suggests for both that the reversal is coming so watch for the upswing to emerge.
USD/TRY and USDBRL
Against the Turkish lira and the Brazilian real the USD also lost its value. Similar to the above cases, it is not expected that this situation will go for a long time. The fundamentals are still on the USD side. However, watch the support levels to make sure you enter only when the upward reversal is verified. Otherwise, if bears drag the USD down, you will have it confirmed by the breach of the support level.
Against the Swiss franc, the USD is gaining well. It crossed the resistance of all Moving Averages and is not aiming at the resistance of the downtrend. The Awesome Oscillator suggests that there is still upward potential – very likely it will be exactly what is needed to come closer to the resistance of 0.9730. Over there, a reversal is possible, that’s why be careful with that level.
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
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