Home Forex News Vantage FX Market Outlook for 10th Nov 2020

Vantage FX Market Outlook for 10th Nov 2020

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#Risk sentiment Risk-on sentiment continued on Tuesday, benefiting the commodity market. Most Asian stocks followed their global peers higher amid promising results from a large-scale coronavirus vaccine study. Bonds and other haven assets steadied after overnight declines.S&P 500 futures fluctuated and European contracts pared some of Monday’s gains.

#Gold prices plunged on Tuesday following the first successful late-stage COVID-19 vaccine trials which boosted the market risk sentiment and encouraged investors to buy higher-yielding assets like the U.S. Dollar. This drove down demand for dollar-denominated gold. Meanwhile, the U.S. Treasury yields leaped on Monday following the news from Pfizer. This made the U.S. Dollar a more attractive investment to the detriment of gold.

#DXY USD went higher overnight as the vaccine brought back the hope of a quicker recovery of the U.S. economy and the labour market. The good news from the vaccine front came just in time as the U.S. cases passed 10 million on Monday and the Fed warned that the asset price could take a hit if the coronavirus’ impact worsens in coming months. The direction of USD still depends on the stimulus talk and the vaccine front and the positive sentiment is likely to continue.

#CrudeOil #Oil Oil slipped lower at the start of the Asian trading session. This comes on the tail of demand concerns for the commodity. The optimistic push up in the price of oil was due to a supposed vaccine being found for the coronavirus. Realistically speaking however, the roll out of the vaccine for the general public is still some time away. Experts are cautioning that the fundamental picture of a lacking demand for oil is still at play. WTI dropped by 63 cents. Whilst Brent dipped by 1.2% from the previous session.

#NZDUSD, H4 is reversing to our Pivot point. Potential for a rise.

Description:

Price is reversing towards our Pivot point of 0.67885, which is in line with 23.8% Fibonacci retracement and horizontal graphical overlap, where we could see a potential rise from this level to our first resistance level of 0.68593. It is worth noting that the Ichimoku Cloud is showing bullish momentum which is in line with our analysis.

Pivot: 0.68593
Why we like it:
23.8% Fibonacci retracement and horizontal graphical overlap

1st Support: 0.68593
Why we like it:
23.8%, 38.2% Fibonacci retracement and horizontal graphical support

1st Resistance: 0.67937
Why we like it:
-27% Fibonacci retracement

Trading FX & CFDs carries high risk.

#USDCAD, H4 is reversing from our Pivot point, potential for a drop.

Description:

Price is reversing from our Pivot point at 1.30146, which is in line with 100% Fibonacci extension, 78.6%, 23.6% Fibonacci retracement and Horizontal graphical overlap. We could potentially see price drop towards our 1st support level at 1.29252. It is worth noting that the price is trending within a bearish channel and Ichimoku Cloud is showing bearish pressure.

Pivot: 1.30146
Why we like it:
100% Fibonacci extension, 78.6%, 23.6% Fibonacci retracement and Horizontal graphical overlap

1st Support: 1.30290
Why we like it:
127.2% Fibonacci extension and -27% Fibonacci retracement.

1st Resistance: 1.30699
Why we like it:
78.6% Fibonacci extension, 78.6%, 38.2% Fibonacci retracement and horizontal graphical resistance level.

Trading FX & CFDs carries high risk.

#XAUUSD, H4 is at our Pivot point, potential for a further rise.

Description:

Price has reached our Pivot point at 1878.42 which is in line with our 23.6% Fibonacci retracement, 127.7% Fibonacci extension and horizontal graphical overlap. We could potentially see price rise towards our 1st resistance level at 1917.11. It is worth noting that the Ichimoku cloud is showing bullish momentum. And Stochastic is approaching the 16% support level where price has previously reacted off.

Pivot: 1878.42
Why we like it:
23.6% Fibonacci retracement, 127.7% Fibonacci extension and horizontal graphical overlap

1st Support: 1850.13
Why we like it:
141.4% Fibonacci retracement and Horizontal graphical support level

1st Resistance: 1917.11
Why we like it:
61.8%, 78.6% Fibonacci extension, 50% Fibonacci retracement and Horizontal graphical level

Trading FX & CFDs carries high risk.

#AUDUSD, H4 is approaching our Pivot point, potential for a rise.

Description:

Price is approaching our Pivot point of 0.72619, which is in line with our 23.6% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical overlap, where we could see a potential bounce at this level to our first resistance level of 0.73680, in line with -27% Fibonacci retracement and horizontal swing high resistance. It is worth noting that the Ichimoku cloud and ascending trendline support are both showing bullish momentum which is in line with our analysis.

Pivot: 0.72619
Why we like it:
23.6% Fibonacci retracement, 50% Fibonacci extension and horizontal graphical overlap

1st Support: 0.72119
Why we like it:
38.2%, 127.2% Fibonacci retracement, 78.6% Fibonacci extension and horizontal swing low support

1st Resistance: 0.73680
Why we like it:
-27% Fibonacci retracement and horizontal swing high resistance.

Trading FX & CFDs carries high risk.

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