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Daily Market Comment – Vaccine optimism, upbeat data push stocks to new highs, dollar retreats

Posted on November 16, 2020 at 9:51 am GMT

Week gets off to positive start as vaccine, strong recovery and Biden victory drive optimism Global stocks surge as S&P 500 sets fresh record high, dollar extends slide Pound holds steady as Brexit talks enter critical phase Markets buoyed by vaccine progress and upbeat Asian data Rapid progress in the race for a COVID-19 vaccine more than offset the deepening gloom of the present virus reality as the latest wave shows no sign of waning. Expectations that last week’s breakthrough [..]

Technical Analysis – EURUSD navigates north; range maintains stronghold

Posted on November 16, 2020 at 8:58 am GMT

EURUSD is piloting higher within a nine-week sideways market after having found some traction off the 50-day simple moving average (SMA). Despite the flattening 50-day SMA, which is endorsing the consolidating picture, the SMAs are sustaining their bullish demeanour, promoting more improvements in the pair. The short-term oscillators also transmit an increase in positive sentiment. The MACD is growing above its red trigger and zero lines, while the RSI is climbing in bullish territory. Furthermore, the stochastic oscillator encourages positive [..]

Technical Analysis – Gold lacks energy, trapped within a range

Posted on November 16, 2020 at 8:28 am GMT

Gold has barely recovered last week’s sharp downfall that drove the price towards September’s low of 1,848, lingering slightly below its 20- and 50-day simple moving averages (SMAs) and the Ichimoku cloud. The momentum indicators are currently painting a neutral-to-bearish picture for the short term as the RSI continues to lack direction and is marginally below its 50 neutral mark, while the MACD is also in a sideways move around its red signal line and within the negative area. A [..]

Technical Analysis – USDJPY eases below SMAs; negative in short- and long-terms

Posted on November 16, 2020 at 8:06 am GMT

USDJPY is heading south after the pullback on the 105.65 resistance on November 11, sending the pair beneath the 20- and 40-period simple moving averages (SMAs). The red Tenkan-sen line dropped below the blue Kijun-sen line, suggesting more losses, while the momentum indicators are currently confirm the bearish structure. The RSI is pointing down in the negative territory, while the MACD declined below the trigger and zero lines in the short-term. Immediate support could come from the lower surface of [..]

Technical Analysis – NZDUSD maintains bullish bias despite pullback

Posted on November 13, 2020 at 1:50 pm GMT

NZDUSD peaked at a 19½-month high of 0.6914 following a one-week ascent from 0.6612, before being pulled back below the mid-Bollinger band. The pair has found some footing at the upper part of a support base surrounding the lower Bollinger band. The upward sloping simple moving averages (SMAs) are sustaining a strong bullish bearing while momentum in the short-term oscillators appears to be picking up. The MACD, in the positive region, is decreasing below its red trigger line but its [..]

Week Ahead – Plenty of data but Covid, Trump and Brexit might steal the spotlight

Posted on November 13, 2020 at 1:40 pm GMT

After the US election and vaccine frenzy, economic data will move to the forefront in the coming week, with inflation and retail sales comprising the bulk of the releases. However, investors might be wrong to assume that the election and virus storms are over as Trump steps up his legal fight to overturn Joe Biden’s projected win and as several states in America head towards new lockdowns. If all that fails to produce enough drama, there is always Brexit waiting [..]

Technical Analysis – US 30 index returns lower after spike to record high

Posted on November 13, 2020 at 10:28 am GMT

The US 30 index posted an aggressive spike towards a fresh all-time high of 30,091.18 on Monday before returning near the previous high of 28,945. Momentum indicators in the daily chart are currently supporting that positive momentum is likely to strengthen in the short-term. Specifically, the RSI is picking up speed slightly below the overbought region and the MACD continues to distance itself above its trigger line. Should the price move higher again, the bulls could extend the uptrend towards the aforementioned record high before the price [..]

Technical Analysis – GBPUSD sets up for some recovery; key resistance area ahead

Posted on November 13, 2020 at 9:47 am GMT

GBPUSD has been developing an upward structure in the four-hour chart since the end of September, recently unlocking a two-month high of 1.3311 near a key upward-sloping line, which has been curbing both upside and downside corrections from April onwards. The price has decelerated thereafter but the 50-period simple moving average (SMA) managed to catch the fall around 1.3128 earlier this week, giving another chance to the bulls. With the Stochastics exiting the oversold area and the price having deviated [..]

Technical Analysis – GBPJPY directionless despite recent push over SMAs

Posted on November 13, 2020 at 9:38 am GMT

GBPJPY is resting on the upper surface of the Ichimoku cloud after topping at 140.28, just above the 140.00 mark, which happens to be the 76.4% Fibonacci retracement of the down leg from 144.94 to 124.00. The horizontal cloud and the conflicting signals from the converged simple moving averages (SMAs) further reflect an aimless market. The short-term oscillators are transmitting mixed clues in directional momentum. The MACD, in the positive region, is creeping higher above its red trigger line, while [..]

Technical Analysis – USDCAD shows chances for gains above falling trend line

Posted on November 13, 2020 at 7:56 am GMT

USDCAD is touching the falling trend line, which has been developing since April 21, despite the break to the upside at the end of October. The price is also flirting with the 20-day simple moving average (SMA) and the momentum indicators are confirming the upside bias. The RSI is heading towards the positive region, while the stochastic is approaching the overbought area. An extension above the descending line could find immediate resistance at the 40-day SMA and the lower surface [..]

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