News

Technical Analysis – GBPUSD declines further in short-term outlook

Posted on October 30, 2020 at 8:08 am GMT

GBPUSD started a deep fall after the pull back on the 1.3175 resistance level, taking the pair below the simple moving averages (SMAs) and the 50.0% Fibonacci retracement level of the up leg from 1.2675 to 1.3175 at 1.2925. From a technical viewpoint, the RSI is holding in the negative zone, while the MACD is extending its bearish movement below its trigger and zero lines. Also, the Ichimoku cloud and the red Tenkan-sen and blue Kijun-sen lines are suggesting a neutral to [..]

Technical Analysis – Gold fades below capping MAs; sideways tone remains

Posted on October 29, 2020 at 3:58 pm GMT

Gold was recently redirected downwards by its congested simple moving averages (SMAs), neutralising the gradual one-month incline from 1,848. The fairly sideways demeanour of the SMAs over the last month, endorses the commodity’s neutral tone between the boundaries of 1,845 and 1,933. The short-term oscillators convey opposing signals in directional momentum. The MACD is declining below its red trigger line in the negative region, while the downward sloping RSI is flirting with the 30 mark. The stochastic oscillator maintains a [..]

Technical Analysis – WTI oil futures test bottom of the range after slump

Posted on October 29, 2020 at 3:22 pm GMT

WTI oil futures for December delivery are seeking a breakdown below the range area that strictly held the market in a neutral structure during the past four months. From a technical standpoint, the price is set to cross below the 50% Fibonacci of the downleg from 65.61 to 6.62, at 36.13, following the rejection near the upper surface of the Ichimoku cloud. Given the weakness in the MACD and the negative slope in the RSI, the sell-off could get new [..]

Technical Analysis – EURGBP gains some ground in trading range

Posted on October 29, 2020 at 2:49 pm GMT

EURGBP is jumping considerably higher over the last 4-hour session, touching the 20- and 40-period simple moving averages (SMAs). The stochastic oscillator is confirming a bullish crossover, however, the MACD oscillator is moving with weak momentum, endorsing the consolidation view in the bigger picture. The pair is holding within the 0.9005 support and the 0.9148 resistance. In the case where the price surpasses the SMAs, immediate resistance could come from the 23.6% Fibonacci retracement level of the downward wave from 0.9290 to 0.9005, at 0.9073. Above that, the 0.9105 level and the 38.2% Fibonacci [..]

Technical Analysis – GBPAUD may consolidate despite footing off 100-MA

Posted on October 29, 2020 at 2:25 pm GMT

GBPAUD appears to be stalling ahead of the four-and-a-half-month high of 1.8525, something also reflected in the unclear and merged Ichimoku lines. The recent foothold on the 100-period simple moving average (SMA) at 1.8216 shot the price above the Ichimoku cloud, preserving the neutral-to-bullish outlook, also backed by the rising SMAs. The short-term oscillators transmit conflicting signals in directional momentum. The MACD is stalling its positive pace above its red trigger line in the positive region, while the falling RSI [..]

Daily Market Comment – Stocks tank, yen shines amid lockdown blues; ECB coming up

Posted on October 29, 2020 at 10:09 am GMT

Panic selling in equities as France and Germany announce new virus-fighting measures Yen and dollar surge amid the turmoil, commodity FX and gold hammered Markets have stabilized on Thursday, but the calm seems fragile Today: ECB policy decision, German inflation, US third-quarter GDP Equities fall apart, haven currencies shine Global markets buckled under the weight of the new shutdowns in Europe yesterday, with the newfound uncertainty around the US election making matters worse. The straw that finally broke the camel’s [..]

Technical Analysis – AUDUSD exhibits directionless tone; bullish bias dwindles

Posted on October 29, 2020 at 9:24 am GMT

AUDUSD seems to have glided into a sideways market below the stable Ichimoku cloud after a gradual withdrawal from the 25-month top of 0.7413. The relatively flattened 50-and 100-day simple moving averages (SMAs), and the pause in the decline of the Ichimoku lines, both back the stalled picture in the aussie. The short-term oscillators also reflect the consolidation in price as they display conflicting signals in directional momentum. The MACD, a bit underneath its zero mark, is barely below its [..]

Technical Analysis – US 30 stock index crashes below 100-SMA; enters oversold area

Posted on October 29, 2020 at 8:51 am GMT

The US 30 index (cash) is set for its largest weekly loss since June after plummeting by almost 3% on Wednesday. The 100-day simple moving average (SMA) could not catch the fall as it notably did back in June and September, letting the price hit a fresh low of 26,499 below the Ichimoku cloud and slightly beneath its previous trough, a move that created question marks about the sustainability of the March uptrend. With the RSI and the Stochastics hinting at oversold conditions, an upside [..]

US GDP growth and Core PCE index: Last data pieces before the election – Forex News Preview

Posted on October 28, 2020 at 5:20 pm GMT

The US is reporting its annualized GDP growth figure for the third quarter on Thursday at 12:45 GMT and the Fed’s favorite inflation measure, the core PCE inflation index, on Friday at 12:30 GMT. The data will be the last key releases before the presidential election next week, but its impact is expected to be muted and overshadowed by political news and Covid headlines despite encouraging forecasts. Q3 the fastest growing quarter ever, but keep your feets on the ground [..]

US election special: A Trump comeback? – Special Report

Posted on October 28, 2020 at 3:51 pm GMT

As the US presidential race enters its final stretch, markets are laser-focused on the outcome, with the correlation between the stock market and opinion polls shooting up lately. The race has tightened substantially, with Trump overtaking Biden in the crucial state of Florida, so a sweeping Democratic victory that delivers king-sized stimulus packages is no longer quite as likely. Below we take a deeper dive into the various scenarios, how likely each is, and how markets might respond. Trump down, [..]

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.