News

Technical Analysis – EURCHF finds footing on 200-day SMA; looks to edge eastward

Posted on November 3, 2020 at 4:03 pm GMT

EURCHF improved slightly towards the 1.0716 mark, after finding some traction off the 200-day simple moving average (SMA) at 1.0670. The weakening slopes of the 50- and 100-day SMAs, and the fairly flat 200-day SMA, appear to be guiding the pair back into another confined sideways move around the 1.0716 level, that being the 38.2% Fibonacci retracement of the down leg from 1.1058 until 1.0504. The short-term oscillators also reflect the pickup in positive price action. The MACD, in the [..]

Fed meeting and NFP eyed as markets digest election – Forex News Preview

Posted on November 3, 2020 at 1:06 pm GMT

It is the mother of all weeks for the dollar and stock markets. In the aftermath of the US election, traders will have to digest a Fed meeting at 19:00 GMT Thursday and the latest US employment report at 13:30 GMT Friday. The election outcome will overshadow everything else, but we may still see some decent moves if the Fed telegraphs an increase in asset purchases come December. As for the jobs data, it is no longer a trend-setter for [..]

Technical Analysis – Dollar index slumps from one-month high; tests key support area

Posted on November 3, 2020 at 11:59 am GMT

The US dollar index (December futures) sharpened its pullback from a one-month high of 94.28 on Tuesday, landing near the 20-period exponential moving average (EMA) in the four-hour chart. The 50% Fibonacci of the 94.77 – 92.43 downleg and the 50-period EMA are also strongly supporting the market in the same neighborhood around 93.60, providing an opportunity for a rebound and preventing an outlook downgrade at the same time. That said, the negative momentum in the MACD and the weakening [..]

Technical Analysis – USDCAD plummets towards 1.3140; bears have control

Posted on November 3, 2020 at 11:03 am GMT

USDCAD plummeted towards the 1.3140 support level today with strong force, taking the momentum indicators lower. The MACD fell beneath its zero line and is distancing from its trigger line, while the RSI is approaching the oversold territory. Moreover, the red Tenkan-sen line dropped beneath the blue Kijun-sen line, shifting the bias to overwhelmingly negative. If the pair weakens further, the 1.3108 could provide the next support at the 1.3108 level. Breaching this trough, the next target is the 1.3080 barrier, taken from the low on [..]

Daily Market Comment – Dollar slips, stocks rally as world awaits next US president

Posted on November 3, 2020 at 9:58 am GMT

Few signs of market jitters on Election Day despite uncertainty about outcome Strong manufacturing data help ease virus fears, stocks bounce back Dollar retreats from highs, aussie shrugs off rate cut to turn higher Biden still in the lead, Trump talks legal action Americans go to the polls today to vote for the next president of the United States following a chaotic election campaign amidst a global pandemic. Most final polls ahead of the election put Democratic candidate Joe Biden [..]

Technical Analysis – WTI futures’ advance capped by 50-MA; bearish bias intact

Posted on November 3, 2020 at 9:31 am GMT

WTI oil futures’ progress off the formed five-month low of 33.63, pared losses of the recent two-week decline from the 41.87 peak as it stretched back to the 50-period simple moving average (SMA) today. The Ichimoku lines’ slower downwards pace reflects waning negative price action, while the falling 50- and 100-period simple moving averages (SMAs) divulge further backing of a deteriorating outcome. The short-term oscillators reflect mixed signals in directional momentum. The MACD is increasing above its red trigger line [..]

Technical Analysis – GBPUSD finds a pivot point but will it turn up?

Posted on November 3, 2020 at 8:43 am GMT

GBPUSD corrected backwards and below its shorter-term simple moving averages (SMAs) and the Ichimoku cloud, but the strong ascending trendline from May’s low of 1.2074 was there once again to support the market. The price printed a bullish hammer candlestick at that point on Monday, and it remains to be seen if it can stage an upside reversal in the coming sessions as the momentum indicators are somewhat conflicting at the moment. The RSI is beneath its 50 neutral mark, though marginally, [..]

Technical Analysis – EURJPY retreats towards fresh 3½-month trough

Posted on November 3, 2020 at 7:51 am GMT

EURJPY was plunging for five consecutive negative days, dropping beneath the 38.2% Fibonacci retracement level of the up leg from 114.40 to 127.10 and the 122.00 handle. The price reached a fresh three-and-a-half-month low of 121.60 on Friday, while the 20- and 40-day simple moving averages are continuing the falling move. Technically, the RSI indicator is pointing up around the 30 level, while the MACD is falling below the trigger line, extending its bearish structure. Moreover, the Ichimoku lines are [..]

RBA policy meeting: Let more stimulus flow – Forex News Preview

Posted on November 2, 2020 at 6:13 pm GMT

The Reserve Bank of Australia (RBA) will decide on policy on Tuesday at 03:30 GMT and markets are almost certain that policymakers will slash interest rates for the third time this year and further widen its quantitative easing program in another attempt to balance the negative effects of the pandemic, which brought the global economy to its knees. With the US election taking centre stage this week and the event fully priced in, the aussie may show a limited reaction, [..]

Technical Analysis – USDJPY shifts sideways; broader picture bearish

Posted on November 2, 2020 at 3:25 pm GMT

USDJPY despite improving from the significant 104.00 support zone is transmitting a neutral-to-bearish tone, curbed by the gradual dip in the 100- and 200-period simple moving averages (SMAs). The flattening 50-period SMA is endorsing the horizontal price action, while mixed signals in momentum exist in the short-term oscillators. The MACD is increasing above its trigger and zero lines, while the RSI is attempting to maintain its positive drive above the 50 threshold. However, the stochastic oscillator has adopted a bearish [..]

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