News

Technical Analysis – US 500 index sets the stage for bullish moves

Posted on November 2, 2020 at 10:06 am GMT

The US 500 index (cash) found key support at 3,260, being the 23.6% Fibonacci retracement level of the up leg from 2,183.95 to 3,588.24 over the last couple of days. After the strong negative sessions in the preceding month, the index is trying to gain some ground with the RSI indicator sloping marginally up and the %K line of the stochastic oscillator, creating a bullish crossover with the %D line in the oversold territory. Upsides moves are likely to find resistance at the 200-day [..]

Technical Analysis – AUDUSD’s picture dampens; scale looks to tip negative

Posted on November 2, 2020 at 9:57 am GMT

AUDUSD is currently pushing off the 0.7000 handle after the curbing 200-period simple moving average (SMA) plunged the pair underneath the 50- and 100-period SMAs, the Ichimoku cloud, and the 0.7020 and 0.7005 supporting troughs. The steady downward slopes of the SMAs and the bearish demeanour of the Ichimoku lines sponsor further fading in the pair. The short-term oscillators express conflicting signals of momentum but are leaning slightly towards the downside. The MACD, in the negative region, has marginally pushed [..]

Daily Market Comment – Upbeat China PMI lifts mood but dollar holds firm

Posted on November 2, 2020 at 9:42 am GMT

Stocks edge up as Chinese manufacturing rebound gathers pace in October But dollar maintains gains as US election and Fed meeting lurk around the corner Pound slips as England back in lockdown, aussie down ahead of RBA Calm before the storm? Equities got off to a somewhat positive start on Monday as stronger-than-expected manufacturing PMI data out of China provided investors with some respite from the doom and gloom of the pandemic. A quickening in Chinese manufacturing activity in October [..]

Technical analysis – EURUSD battles with the bearish trend; major support at 1.1611

Posted on November 2, 2020 at 9:00 am GMT

EURUSD found new sellers below its simple moving averages (SMAs), stretching the pullback from the bottom of the ascending channel slightly below the Ichimoku cloud and towards September’s trough of 1.1611. The downward-sloping RSI combined with a bearish MACD, which has snapped below its signal and zero lines, is indicative of a strengthening bearish bias. Meanwhile, the red Tenkan-sen line is also set for a bearish crossover with the blue Kijun-sen, adding to the discouraging signals. Still, the wall around [..]

Technical Analysis – JP 225 index plunges under MAs; negative risks linger

Posted on October 30, 2020 at 1:29 pm GMT

Japan 225 stock index (cash) has improved slightly from the one-month low of 22,874 despite unbroken negative forces. The intact negative bearing of the Ichimoku lines and the downward sloping simple moving averages (SMAs) are supporting further deterioration in the price. Moreover, the approaching bearish crossover of the 200-period SMA by the 50-period one may additionally boost negative price action. The short-term oscillators, although in negative territories, reflect the recent progress in the index. The MACD, deep in the negative [..]

Week Ahead – US election, three central banks, and nonfarm payrolls

Posted on October 30, 2020 at 12:53 pm GMT

It is probably the busiest week ever for markets. The US presidential election will eclipse everything else, but there are several other crucial events like a Fed meeting and nonfarm payrolls to follow the main dish. The Bank of England and the Reserve Bank of Australia will decide as well and both are ‘live’ meetings, where more easing is expected. Overall, the tone in the FX and stock markets will depend mostly on the election outcome, and whether we have [..]

Daily Market Comment – Equities back in the meat grinder after big tech earnings

Posted on October 30, 2020 at 11:19 am GMT

Stocks continue to melt down as big tech results underwhelm Some de-risking ahead of the election may be contributing too Dollar not really participating in risk-off Friday, but the yen is Eurozone inflation data today could shape ECB easing expectations ‘Dead cat’ bounce fades as big tech underwhelms Global markets breathed a sigh of relief on Thursday as risk appetite returned to some degree, but it was not meant to last, with the meltdown in equities resuming today on the [..]

Technical Analysis – NZDUSD rebounds off lower bound of ascending channel

Posted on October 30, 2020 at 10:16 am GMT

NZDUSD is holding beneath the 200-period simple moving average (SMA) inside the upward sloping channel in the 4-hour chart. In momentum indicators, the RSI is sloping slightly up in the negative territory, while the MACD is moving sideways below the zero level, framing a neutral-to-bearish bias . Should bullish dynamics dominate, the market might revisit the 20- and 40-period SMAs at 0.6660 and 0.6670 respectively. Above them, the area around 0.6725, which halted bullish movements in the past, could be another barrier in focus, while a [..]

Technical Analysis – USDCAD struggles as advances restricted by 100-MA

Posted on October 30, 2020 at 9:11 am GMT

USDCAD appears to be developing a neutral-to-bearish pattern as its recent progress from 1.3080 seems is being supressed by the 100-day simple moving average (SMA). The stifled Ichimoku lines and the dwindling downward pace of the 50- and 100-day SMAs are aiding this view. The short-term oscillators currently reflect improving positive momentum. The MACD is strengthening above its red trigger and zero line, while the RSI is making attempts to sustain a positive trajectory towards the 70 level. However, the [..]

Technical Analysis – GBPJPY set for another red day; 133.00 could be the next target

Posted on October 30, 2020 at 8:48 am GMT

GBPJPY is printing its eighth consecutive red tiny candle following its second rejection from the 50-day simple moving average (SMA). The price has slipped below the 38.2% Fibonacci retracement of the 124.00 – 142.69 upleg, and there appears no key obstacle in sight to prevent the decline from reaching the 50% Fibonacci of 133.30 as the RSI continues to decelerate towards its 50 neutral mark. The MACD is also gaining negative momentum, while the red Tenkan-sen is set to cross [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.