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What does New Zealand’s election mean for the kiwi? – Forex News Preview

Posted on October 15, 2020 at 1:46 pm GMT

New Zealand’s election takes place on Saturday and opinion polls suggest a decisive victory for incumbent Prime Minister Jacinda Ardern, who has become tremendously popular after successfully handling the healthcare crisis. The real question for the kiwi dollar is whether Ardern will win an outright governing majority, in which case the currency could get a small boost, or whether she will need a coalition with a smaller party. In the bigger picture, the primary drivers for the kiwi will be [..]

Technical Analysis – EURUSD’s retreat hits a wall around 1.1700; may edge sideways

Posted on October 15, 2020 at 12:27 pm GMT

EURUSD has been on a downward trajectory lately after the recent decline from the 1.1830 high and under the simple moving averages (SMAs), but the pair encountered support near the 1.1700 level and has subsequently rebounded a little. The diving 20-period SMA promotes further losses, while the slowing downward pace of the 100- and 200-period SMAs endorses a horizontal shift in the price. Moreover, the short-term oscillators display conflicting signals in directional momentum. The MACD, in the negative section, is [..]

Technical Analysis – EURUSD may edge sideways; retreat hits a wall around 1.1700

Posted on October 15, 2020 at 11:54 am GMT

EURUSD has been on a downward trajectory lately after the recent decline from the 1.1830 high and under the simple moving averages (SMAs), but the pair encountered support near the 1.1700 level and has subsequently rebounded a little. The diving 20-period SMA promotes further losses, while the slowing downward pace of the 100- and 200-period SMAs endorse a horizontal shift in the price. Moreover, the short-term oscillators display conflicting signals in directional momentum. The MACD, in the negative section, is [..]

Daily Market Comment – Sentiment sours as stimulus talks stall, virus cases surge

Posted on October 15, 2020 at 10:39 am GMT

Stocks retreat, dollar goes nowhere as Mnuchin plays down pre-election stimulus European covid cases go through the roof, but euro stands its ground UK signals it won’t abandon Brexit talks this week, pound jumps Aussie slides after RBA Governor fuels speculation for rate cut Stimulus talks stall, markets fall Global equity markets continue to correct lower, with the major US indices sliding yesterday and Asian bourses being a sea of red on Thursday, as the chances of a US relief [..]

Technical Analysis – USDCHF pulls back from 23.6% Fibo; retains bearish view

Posted on October 15, 2020 at 8:13 am GMT

USDCHF held in loses for the fourth week in a row, dropping below the 23.6% Fibonacci retracement level of the down leg from 0.9295 to 0.9084 at 0.9135. The RSI in the four-hour chart continues to miss direction around the 50 level, while the red Tenkan-sen jumped above the blue Kijun-sen line, increasing chances for a meaningful recovery in the short-term trading. Also, the stochastic oscillator completed a bullish crossover within the %K and %D lines above the 20 level. However, should the price [..]

Technical Analysis – AUDUSD tests 100-day SMA; neutral bias governs

Posted on October 15, 2020 at 7:58 am GMT

AUDUSD appears fixed, cramped between its 50- and 100-day simple moving averages (SMAs) and is adopting a short-term sideways demeanour. The steadied Ichimoku lines and the regulating 50- and 100-day SMAs back this view and may keep the price bound in a neutral phase for a while longer. The MACD, slightly below zero, is above its red signal line opposing negative momentum but looks set to dip back under it. The stochastic oscillator maintains a strong negative bearing, while the [..]

US retail sales may get sidelined amid political woes – Forex News Preview

Posted on October 14, 2020 at 11:11 am GMT

The US calendar will get busier at the end of this week amid a turbulent presidential campaign and a fiscal stimulus drama. But among all data, the focus will be on retail sales for September released Friday at 12:30 GMT. Particularly, markets would like to find out how household spending in the world’s biggest economy is progressing during the present coronavirus conditions, but the results may not paint a rosy picture. The reduced $300 weekly unemployment benefit which Trump extended [..]

Technical Analysis – Gold recoups some losses, holding above 100-SMA

Posted on October 14, 2020 at 10:08 am GMT

Gold prices bounced off the 23.6% Fibonacci retracement level of the down leg from 2,015 to 1,848 at 1,887, moving above the 100-period simple moving average (SMA). The technical indicators are endorsing the upside movement of the last couple of sessions. The RSI is standing near the neutral level of 50, while the stochastic is moving higher after the bullish cross within the %K and %D lines. An extension to the upside could take the precious metal until the 40-period [..]

Technical Analysis – GBPJPY retreats below SMAs after progress curbed by 50.0% Fibo

Posted on October 14, 2020 at 8:28 am GMT

GBPJPY defied the 100-period simple moving average (SMA) at 135.87 but found some footing at the floor of the cloud. The sharp drop ahead of the 137.85 level, that being the 50.0% Fibonacci retracement of the down leg from 142.70 to 133.03, is weighing heavily on the cloud’s lower boundary. The negative tone within the declining Ichimoku lines endorses additional deterioration in the pair. The short-term oscillators also reflect strengthening negative momentum. The MACD underneath its red signal line, is [..]

Daily Market Comment – Lockdown fears running wild

Posted on October 14, 2020 at 8:06 am GMT

Dollar comes back to life as euro and sterling feel the lockdown blues Little progress in US stimulus talks also supports dollar, pressures stocks Overall, there are plenty of risks that markets are not fully appreciating Lockdown blues hammer euro and pound The European virus situation is getting worse by the day, with a surge in new cases and hospitalizations across the continent forcing many nations to go back into partial lockdown so that healthcare systems are not overwhelmed. The [..]

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