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Week Ahead – The calm after the US election storm

Posted on November 6, 2020 at 12:31 pm GMT

It’s a relatively quiet week coming up for global markets as the election dust settles. The main event will be the RBNZ policy meeting, though frankly, the real driver for most currencies and stocks may be the ‘aftershock’ effects of the election. There’s also a slew of economic data, the Brexit adventure continues, and the earnings season winds down. There’s no keeping this market down No ‘blue wave’ in the US election? No problem. This was essentially the market response [..]

Technical Analysis – GBPJPY capped by SMAs and squeezed Bollinger band

Posted on November 6, 2020 at 12:17 pm GMT

GBPJPY is trading around the vicinity of 136.00, where the 20- and 40-day simple moving averages (SMAs) are also holding. The pair failed several times to jump above the 137.70 barrier, which has imprisoned the price for more than a month. Looking to the short-term oscillator, the RSI promotes slight improvement around its neutral mark, despite diminished directional momentum. Yet, the declining 20- and 40-day SMAs maintain a bearish tone, while the Bollinger band is squeezing. Should buyers drive above [..]

Technical Analysis – NZDUSD hits wall at fresh high; positive momentum under strain

Posted on November 6, 2020 at 10:46 am GMT

NZDUSD retreated slightly from a newly formed resistance band of 0.6797-0.6801 involving the previous 17½-month high of 0.6797. The improvement in the bullish simple moving averages (SMAs) is assisting the positive price action, though the technical indicators reflect some waning in the pair. The short-term oscillators reflect the struggle in price to ascend further. The MACD is some distance in the positive region and above its red trigger line but looks to be easing somewhat, while the RSI is hovering [..]

Daily Market Comment – Post-election rally eases as Biden advances in swing states

Posted on November 6, 2020 at 10:00 am GMT

White House race remains too close to call but Biden win becoming more likely Equity rally cools as markets give Washington gridlock a thumbs up Dollar steadies with Treasury yields as Fed keeps policy on hold NFP up next but US election and record virus cases to stay in focus Biden inches towards victory in knife-edge election The US presidential election remains an open race as counting enters day four, though the odds appear to be moving in favour of [..]

Technical Analysis – USDCAD seeks support at the bottom of a bearish rectangle

Posted on November 6, 2020 at 9:10 am GMT

USDCAD flipped last week’s gains after the rejection near 1.3389, diving back below its shorter-term simple moving averages (SMAs) and towards the key support of 1.3040, last seen in early September. The lower Bollinger band is also restraining the price around that border, marking the location a potential turning point as the Stochastics head for a bullish cross below their 20 oversold level. It is also worthy to note that the sideways move between the 1.3389 and 1.3040 boundaries could [..]

Technical Analysis – US 30 index heads north in possible charge to new all-time highs

Posted on November 6, 2020 at 8:28 am GMT

The US 30 index (cash) created five straight positive days after the bounce off the 200-day simple moving averages (SMAs) around the 26,077 support level. Over the last four months, the price has been developing within a slightly bearish channel and the technical indicators are mixed. The MACD is standing near the zero level, while the RSI is extending its bullish movement above the neutral threshold of 50. Further increases could take the bulls towards the 29,224 resistance before revisiting the [..]

Technical Analysis – Gold gears up within 1,900 area; bullish but overbought

Posted on November 5, 2020 at 2:49 pm GMT

Gold switched to green on Thursday, speeding up within the 1,900 area, which barely could touch in the previous day. The precious metal is currently close to breaching the bar around 1,930, though the bulls seem to be running out of fuel as the RSI is approaching a key resistance zone slightly below its 70 overbought level, making a pullback in the price possible. The Stochastics are already above 80, further backing this view. Nevertheless, should the market find new [..]

Loonie stable ahead of potentially positive employment report – Forex News Preview

Posted on November 5, 2020 at 1:35 pm GMT

The Canadian economy is in a period of a great uncertainty. It’s not too surprising therefore that the Canadian dollar has been moving sideways against the US dollar over the last two months. Investors are waiting for the employment report on Friday at 1230 GMT for fresh clues on the economy. Stronger figures in employment may provide some relief to the domestic currency, helping it surpass again the descending trend line. Unemployment rate is expected to tick even lower In the previous release, the unemployment rate in Canada decreased [..]

Technical Analysis – EURUSD surges above 1.1800; indicators look bullish

Posted on November 5, 2020 at 12:20 pm GMT

EURUSD is surging to a new one week-high around the 1.1800 handle after it surpassed the Ichimoku cloud and the 1.1770 barrier. The 20-and 40-period simple moving averages (SMAs) are ready to create a bullish crossover in the short-term timeframe, while technical indicators are heading north. The MACD is extending its move above its trigger and zero lines, and the RSI is approaching the overbought zone. In the positive scenario where the price continues to expand above today’s high of [..]

Daily Market Comment – Biden leads as Trump begins legal fight; dollar eases, stocks surge

Posted on November 5, 2020 at 9:56 am GMT

Biden edges closer to the White House but faces legal battles as Trump not giving up Markets undaunted by election stalemate, see good and bad in all outcomes Dollar near lows as Treasury yields extend slide, stocks shine in post-election rally Pound lifted by fresh BoE stimulus; less room for surprises by the Fed World holds breath in tightest election race ever Democratic nominee Joe Biden was one state away from victory early on Wednesday as counting continued across the [..]

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